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To produce the power with higher overall efficiency and reasonable cost is ultimate aim for the power industries in the power deficient scenario. Though cogeneration power plant is most efficient way to produce the power in today's rapidly increasing fuel prices world. The exergy analysis has been found useful tool for the performance assessment of any thermal energy system. Exergy concepts provide the deep insight into the losses through subsystems and actual performance. A case study is carried out at Saukem Ltd. at Porbandar. Plant produces 25 MW power and 120 TPH steam. The purpose of this study is to analyze power plant and consider the efficiency of the power plant through both the first and the second law of thermodynamics. The energetic and exergetic performance criteria such as thermal efficiency, exergy efficiency and exergy loss have been found out which is very useful methods in design, evaluation, optimization and improvement of thermal power plants.