A steam power plant should have low cost & high thermal efficiency. If the steam power plant is coal based. It should be able to burn inferior quality of coals with high ash content.

Factor of selecting site for steam power plants:

1. Availability of raw materials: Steam power plant using coal or oil as fuel require very large amount of fuel per annum.

2. Nature of land and its cost: The selected site should have high bearing capacity of at least 10 N/sq mm to with stand dead load of the plant. It would reduce the cost of the foundation of the plant.

3. Availability of water: Steam power plant use water as working fluid throughout the year, which is repeatedly evaporated and condensed. It also need about 2% of steam generated as make up water due to its loss.

4. Load center: The location of plant at center of loads reduces the cost of transmission lines and the losses occurring in it.

5. Transport facilities

6. Availability of labour

7. Ash handling facilities

8. Future expansion

9. Pollution

10. Away from Air fields