Implementation of data envelopment analysis-genetic algorithm for improved performance assessment of transmission units in power industry

This paper introduces a hybrid approach based on data envelopment analysis (DEA) and genetic algorithm (GA) for efficiency assessment and optimisation of electricity transmission units. The optimisation procedure in thispaper is followed from two different viewpoints, that is, input efficiency and input cost. The result of DEA model is verified and validated by GA through Spearman correlation experiment. Moreover, the proposed approach uses the measure specific super-efficiency DEA model for sensitivity analysis todetermine the critical inputs based on efficiency and cost allocation superefficiency DEA model to determine the critical inputs based on cost. The unique feature of this study is utilisation of GA and DEA for assessment and optimisation of critical inputs from two different viewpoints: efficiency and cost. This is the first study that introduces a hybrid GA-DEA approach for performance assessment and optimisation of electricity transmission units. The superiority of the hybrid approach is shown for 32 transmission units. © 2011 Inderscience Enterprises Ltd.