EVALUATING PERFORMANCE INDICATORS OF THERMAL POWER PLANTS: EVIDENCE FROM EGBIN AND AFAM IV IN NIGERIA

Abstract

The evaluation of performance metrics for key power plants is crucial to meet the rising energy demands driven by Nigeria's growing population. This study assesses the performance metrics of Egbin and Afam VI power plants over a six-year period (2017–2022), focusing on indicators such as capacity factor, percentage energy loss, and revenue loss due to reduced generation. Results reveal that Egbin Power Plant achieved an average capacity factor of 43.4%, while Afam VI recorded 18.68%, both significantly below the international best practice range of 50%–80%. Energy loss percentages for Egbin and Afam VI were 56.6% and 68.67%, respectively, compared to the international benchmark of 5%–10%. Revenue losses attributed to outages were substantial, with Egbin incurring approximately ₦1.68 trillion and Afam VI about ₦834.52 billion over the study period. These findings underscore that both plants operate below international industrial standards. The study recommends targeted measures to enhance operational efficiency and optimize energy output to bridge the performance gap