Purpose: This thesis addresses critical issues within the plant's capacity and operational framework, emphasizing the importance of enhancing the generation system's resilience through the N-1 and N-2 capacity criteria. Research Methodology: The research methodology encompasses both qualitative and quantitative data collection methods, including observations, interviews, brainstorming sessions, and document reviews. Results: The study's findings highlight the significant gaps between the plant's targeted and actual performance metrics over a four-year period, revealing persistent underperformance in energy production and substantial fluctuations in fuel consumption. The application of N-1 and N-2 criteria is crucial for ensuring the system's reliability and resilience, particularly as renewable energy sources are integrated into the grid. Limitations:  Contribution: The contribution of this research to the field of power distribution management is twofold: it provides a comprehensive analysis of the challenges facing the Teluk Dalam Diesel Power Plant and proposes viable solutions to enhance its operational performance and sustainability.