The increase in international competition and the constant research for improving reliability and reducing costs have spurred the applications of the system monitoring to power plant; the monitoring function are extremely useful for a plant management purposes and fault diagnosis. In particular Failure Detection and Isolation strategies monitor system operations for degradation and, if detected, classify the failure source. In this paper, after a brief description of the different approaches at the FDI problem, we consider the model-based methods (analytical redundancy) and in particular the parameter identification of a system on the basis of observed inputloutput data. Some algorithms have been developed inside an European project (TOPand the monitoring system realized by Elsag Bailey Energy & Industry Division can now add to the standard functions these tools for the fault detection routines. An illustrative example of an industrial application is given.
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