THERMOECONOMIC ANALYSIS AND OPTIMIZATION OF ENERGY-SYSTEMS

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