THERMOECONOMIC ANALYSIS AND OPTIMIZATION OF ENERGY-SYSTEMS

This article discusses the development, state-of-the-art and applications of exergy analysis and thermoeconomics (exergoeconomics). The latter is a relatively new method that combines exergy with conventional concepts from engineering economics to evaluate and optimize the design and performance of energy systems. This paper is written mainly for the person interested in applying thermoeconomics to an energy system. It reviews the history of exergy analysis and thermoeconomics, the performance evaluation of an energy system from the viewpoints of the second law of thermodynamics and thermoeconomics as well as applications of thermoeconomic optimization techniques.