Determining the thermal efficiency of a power plant involves computing the amount of fuel energy required to produce a unit of electrical energy. For example, a heat rate of 8,000 BTU/kWh signifies that 8,000 British Thermal Units of fuel are needed to generate one kilowatt-hour of electricity. This metric is commonly expressed in British Thermal Units per kilowatt-hour (BTU/kWh) or kilojoules per kilowatt-hour (kJ/kWh).
This efficiency measurement is crucial for power plant operators to assess and optimize performance, control costs, and benchmark against industry standards. A lower value indicates higher efficiency, meaning less fuel is consumed for the same power output, leading to reduced operational expenses and environmental impact. Historically, tracking this metric has been essential for driving technological advancements in power generation, pushing the industry towards cleaner and more sustainable practices.