The steam generator is locked behind Large Generator 2, making it a bit of an investment to unlock, and yet it has a pitiful power output of only 10. This is just not worth the investment or space for such a weak power source. When you consider that you are consuming energy to produce the water and the building materials to feed it, the net positive power must be almost nothing, if it is not actually net negative.

Also the choice to burn building materials as fuel seems a bit strange. Shouldn't it be coal or carbon for fuel? Maybe the idea was to not use a resource that is needed for steel? In any case if switching the fuel source over to coal would justify a large power output increase to you, it would be well worth it as the steam generator seriously lacks appeal currently.