A Modified DEA Model for Benchmarking of Hydropower Plants

Data envelopment analysis (DEA) is an operation research technique based relative efficiency measurement tool. In this paper, a modified DEA model, based on expert´s opinion as well as the available economic parameters, has been formulated to analyze the operational performance of the hydropower plants in Nepal. The results are then compared against those from conventional DEA model. The categorical variables in the proposed model are treated in a non-conventional way by identifying additional variable sets to replace them. The modified DEA model formed in this study includes a wide range of variables that comprehensively describe the electricity production process in hydropower plants. Sensitivity analysis is carried out in order to investigate the robustness of the results and to identify the improvement directions for each hydropower plant. Based on the results of the sensitivity analysis, strengths and weaknesses of individual plants are identified. The results are ultimately used to rank the Nepalese hydropower plants according to the overall average efficiency of individual plants.