Thermal Efficiency

Thermal efficiency measures how well a system converts heat energy into useful work or output. It is expressed as a percentage, calculated by dividing the useful energy produced by the total energy consumed. In simple terms, if a power plant generates electricity from fuel, thermal efficiency indicates how much of the fuel's energy is effectively turned into electricity, with the rest lost as waste heat. Higher thermal efficiency means less fuel is needed for the same output, leading to better energy use and reduced environmental impact.