This study demonstrates the potential of exergy analysis as a tool for identifying inefficiencies within complex systems and prioritizing improvements. Specifically targeting the most inefficient components can lead to the greatest gains in overall system efficiency. To illustrate this point, the authors conducted an energy and exergy assessment of a gas turbine power plant located in Assiut, Egypt. The results revealed that the combustion chamber was the primary source of exergy destruction, indicating that this component has the greatest potential for improvement. The gas turbine was found to have the highest exergy efficiency at 95.3%, followed by the air compressor at 87.4%, while the combustion chamber had an exergy efficiency of 71.2%. The overall energy and exergy efficiency of the system were 28.8% and 27.17%, respectively. The study also highlights the impact of ambient temperature on efficiency and losses, with higher temperatures leading to reduced efficiency and increased exergy destruction. This underscores the need for optimization strategies to mitigate the impact of ambient temperature and maximize plant performance.