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It's only a problem with demand exceeds maximum capacity.
Increase demand and performance should increase
In your case it's a good thing performance is low
Per the screenshot: Available performance is full. Performance is low. Temperature is at 100.
This means that the problem isn't with the design of the steam engine power plant, but in understanding what the readouts mean.
A frequent point of confusion is that actual power output (performance) will scale to actual demand, up to the point where actual demand exceeds the maximum power output.
If actual demand exceeded maximum output, or if temperature was low, that would be apparent in the screenshot-- either because the temperature in the last steam engine would show as < 100, or because the "available performance" would be less than full.