In the context of global concerns surrounding the depletion of conventional energy sources, Sudan grapples with pronounced challenges related to its hydrocarbon reserves, relying predominantly on fossil fuel-powered thermal plants for electricity generation. Amidst these challenges, efforts to optimize power generation plants have emerged as crucial strategies to reduce fuel consumption and minimize environmental impact. This study delves into the assessment of energy and exergy aspects, focusing on the fifth unit steam generator at Khartoum North Thermal Power Plant (KNTPP). Revealing key findings, the investigation identifies the chimney as the primary locus of energy dissipation, responsible for a substantial 18% of the total energy input into the steam generator. Subsequently, the combustion chamber emerges as the second significant contributor, accounting for 9.2% of the overall energy losses. Notably, the combustion chamber exhibits the highest loss rate for exergy, reaching 39.8%. The evaporator, contributing to the second-highest exergy loss rate, registers at 12.7% of the entire exergy entering the steam generator at a Boiler Maximum Continuous Rate (BMCR) of 90%. Furthermore, the study underscores the pivotal role of chemical reactions as the primary driver of exergy loss within the system. Incorporating these insights, the research emphasizes the importance of implementing targeted strategies to enhance the efficiency of power generation processes, thereby contributing to reduced energy losses and improved environmental sustainability in Sudan’s power generation landscape.