A steam power plant works on the Rankine cycle to convert heat from burning coal into mechanical work. Coal is pulverized and burned in a boiler to produce high pressure steam. This steam powers a turbine, which spins an alternator to generate electricity. The steam is then condensed in a condenser and pumped back to the boiler to repeat the cycle. Thermal efficiency is around 35-40% due to heat lost in the condenser. Proper site selection considers factors like fuel transportation, water availability, and environmental impact.