A thermodynamic analysis is performed for an aero derivative gas turbine engine which utilizes steam injection to increase its efficiency. The target was to explore the performance of a high efficiency gas turbine unit for electric power generation without downstream Rankine cycle. A Rankine cycle for exhaust heat recovery is unattractive because of its large response time and cost of investment. The main purpose of this research was to develop a better understanding of how the optimal cycle efficiency is reached, when the steam for injection is generated by use of the turbine exhaust heat. The STIG cycle becomes attractive for grid stabilization because of its low CAPEX and small footprint and response time. A thermodynamic model has been developed to simulate the simple cycle gas turbine, steam generation and effects of steam injection. Reference input parameters for the model are taken for the GE LM6000 turbine as publicly available. The performance of the engine without steam injection as predicted by the model is compared with literature for validation and compares well. The performance of the STIG cycle as a function of operation parameter steam mass flow and design parameters pressure ratio and turbine inlet temperature is investigated and the optimal parameter settings determined. It is found that this type of cycle shows a very specific parameter setting for optimal efficiency. By using steam injection for the chosen turbine and its parameters an efficiency gain of around 11% points and an output power augmentation of 45% can be achieved.