Assessing the partial least squares-structural equation modelling causal relationship between input and output of energy generation model

Abstract

Most of the countries globally depend on the energy-related industries in daily and economic activities. Due to the perpetual population growth and the fast economic development, the development of energy generation model is crucial in availing the economic planning strategy of the country. The study developed and evaluated the energy generation model of Al-Zawiya Steam Power Plant, Libya. Specifically, the study focused on the causal relationship between input and output of the energy generation model using the Partial Least Squares–Structural Equation Model (PLS-SEM) method as the sample size was too small to utilize Structural Equation Modelling-Analysis of Moment Structure (SEM-AMOS). A data was gathered from Al-Zawiya Steam Power Plant, Libya which consisted of 12 indicator variables with 60 observations. The analysis revealed that most of the causal relationships in the developed model were significant at p<0.005. The results indicated that the developed model was strengthened by empirical analysis and in parallel with the preceding findings and theoretical framework. Apart of input and output structural model, the study also prosperously validated all the indicator variables depicted in input and output measurement model. In conclusion, this study had successfully developed and evaluated energy generation model and corroborated the causal relationship of several input and output latent variables by betokens of structural equation model through PLS-SEM approach.