‫ﺗﺤﻠﯿﻞ اﮔﺰرژي‬

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 Definitions:

 Exergy (also called Availability or Work Potential): the maximum useful work that can be
obtained from a system at a given state in a given environment; in other words, the most
work you can get out of a system

 Dead State: when a system is in thermodynamic equilibrium with the environment, denoted
by a subscript zero; at this point no more work can be done
Exergy ( Availability)

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 Why Study Exergy?
• In the last several decades, exergy analysis has begun to be

used for system optimization.

– By analyzing the exergy destroyed by each component in a

process, we can see where we should be focusing our efforts to

improve system efficiency.

– It can also be used to compare components or systems to help

make informed design decisions.

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 ‫ﺗﺤﻠﯿﻞ اﮔﺰرژي ﺳﯿﺴﺘﻢ ﺗﻮﻟﯿﺪ ﻫﻤﺰﻣﺎن ﻗﺪرت و ﺣﺮارت )‪(CHP‬‬
‫‪8‬‬ ‫)‪(GT+HRSG‬‬
‫‪Water‬‬

‫‪9‬‬
‫‪Steam‬‬

‫‪1‬‬

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The reference substances for model I, presented in Reference 4, are
determined assuming restricted chemical equilibrium for nitric acid and
nitrates and unrestricted thermodynamic equilibrium for all other chemical
components of the atmosphere, the oceans, and a portion of the lithosphere.
different approach is used in model II, presented in Reference 5: A reference
substance is selected for each chemical element from among substances that
contain the element being considered and that are abundantly present in the
natural environment, even though the substances are not in completely mutual
stable equilibrium. 30
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the chemical exergy per mole of gas k is

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CO2

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-hRP=HHV or LHV

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Exergy Destruction and Exergy Loss

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Exergy Destruction Through Heat Transfer and Friction

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Exergetic Efficiency

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‫آﻧﺎﻟﯿﺰ اﻗﺘﺼﺎدي‬

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7.1.1 Cost Estimates of Purchased Equipment

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Figure 7.2 illustrates graphically the
procedure for obtaining a bare module
Factor:
For a shell-and-tube heat exchanger

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In general, with the above simplified relationships we can only obtain
order-of-magnitude cost estimates. Since the total capital investment is
several times larger than the sum of equipment base costs, the cost
estimation of purchased equipment becomes very important for the
accuracy of total capital investment estimation.
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Cost escalation

is defined as changes in the cost or price of specific goods or

services in a given economy over a period. This is similar to
the concepts of inflation and deflation except that escalation is
specific to an item or class of items (not as general in nature),
it is often not primarily driven by changes in the money supply,
and it tends to be less sustained. While escalation includes
general inflation related to the money supply, it is also driven
by changes in technology, practices, and particularly supply-
demand imbalances that are specific to a good or service in a
given economy. For example, while general inflation (e.g.,
consumer price index) in the US was less than 5% in the 2003-
2007 time period, steel prices increased (escalated) by over
50% because of supply-demand imbalance.
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7.2.3 Current versus Constant Dollars
The real interest rate (real cost-of-money rate, real return rate, or real discount
rate) is the money paid for the use of capital that does not include an adjustment
for the anticipated general price-inflation rate in the economy. This adjustment is
included, however, in the nominal interest rate (nominal cost of money rate,
nominal return rate, or nominal discount rate). The real interest rate is based on
the potential real (Le., excluding inflation) earning power of money. The relation
between the real interest rate (ir) and the nominal interest rate (in) is

An economic analysis can be conducted either in current dollars by including

the effect of inflation in projections of capital expenditures, fuel costs, and O&M
costs, or in constant dollars by excluding inflation and considering only
real escalation rates in cost projections and the real cost of money. Each
approach has its strengths and weaknesses

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The cost of an asset in the jth year expressed in constant (subscript cs) and
current (subscript cu) dollars, respectively, is given by

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7.3 CALCULATION OF REVENUE REQUIREMENTS
The annual total revenue requirement (total product cost) for a system is
the revenue that must be collected in a given year through the sale of all
products to compensate the system operating company for all expenditures
incurred in the same year and to ensure sound economic plant operation.
Figure 7.3 shows the major cost categories considered in the calculation of
the total revenue requirement. Although the terms expenses and carrying
charges are sometimes used differently by engineers and accountants, we
will adopt the definition of expenses as shown in Figure 7.3: the sum of fuel
costs and operating and maintenance costs. Expenses include goods and
services that are used in a short period of time, usually less than one year.
Expenses are paid for directly from revenue and, therefore, are not
capitalized.

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 The annual total revenue requirement (TRR) is equal to the
sum of the following eight annual amounts:
 total capital recovery (TCR);
 minimum return on investment (ROI) for common equity
(subscript ce), preferred stock (subscript ps) and debt
(subscript d);
 income taxes (ITX);
 other taxes and insurance (OTXI);
 fuel costs (FC); and
 operating and maintenance costs (OMC):

The subscript j refers to the jth year of system operation. The numbers given
below each term of Equation 7.40 key the variables to the categories of Figure
7.3 98
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7.4 LEVELIZED COSTS AND COST OF THE MAIN PRODUCT
When evaluating the cost effectiveness and considering design
modifications of a thermal system, it is necessary to compare
the annual values of carrying charges, fuel costs, and O&M
expenses (see Sections 8.3.1, 9.2 and 9.6).

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THERMOECONOMIC ANALYSIS
Introduction

The concept of exergy costing and the cost formation process are
presented.

Thermoeconomics is, in its widest possible sense, the science of

natural resources saving that connects physics and economics by
means of the Second Law of Thermodynamics.

The final purpose of transformation in energy systems formed

from a set of subsystems or processes is to increase the
economic utility.

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 Thermo-economic

Economic analysis can calculate:

the cost of fuel, investment, operation and
maintenance for the total plant or even individual
components
but provide no means on how to allocate costs
among them and its products.

Thermodynamic analysis let us calculate:

the efficiency of the individual process of the plant
and locates and quantifies the irreversibilities
but it cannot evaluate their significance in terms of
the overall production process.
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 Thermo-economic

Thermoeconomic analysis combines economic

and thermodynamic analysis by applying the
concept of cost, originally an economic property, to
exergy.

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 Cost of exergy ( Availability)
Exergy accounts for energy quality:
Therefore we can allocate cost for exergy.

Important statement:

Two flows are thermodynamically equivalent,

that is, it is theoretically possible to get one
from the other without additional consumption of
energy resources if, and only if, they have the
same exergy.

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 connecting thermodynamics and economics

thermodynamics

entropy generation/
irreversibility.

economics

energy lost or destroyed ~ the true inefficiencies of industrial processes.

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 Exergy balance

The input exergy into a process will always be greater than the exergy output:

Exergy Input - Exergy Output = Irreversibilities > 0

This expression only keeps in mind the irreversibilities of the process.

The purpose of this process is set by means of the definition of its efficiency.

Efficiency = Product / Resource

The following equation uniting physics with economics:

Resources (F) – Products (P)= Residues (R)+ Irreversibilities (I) > 0

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Thermoeconomics are used for:

 Rational prices assessment of plant products based

on physical criteria.
 Optimization of specific process unit variables to
minimize the final product cost, i.e. global and local
optimization.
 Detection of inefficiencies and calculation of their
economic effects in operating plants, i.e. plant operation
thermoeconomic diagnosis.
 Evaluation of various design alternatives or operation
decisions and profitability maximization.
 Energy audits.

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 Thermoeconomic methods

Thermoeconomic methods are generally subdivided in two categories,

1- those based on cost accounting,

e.g. Exergy Cost Theory, Average Cost Approach, Last-In-First-Out Approach

Cost accounting methods help to determine the actual cost of products and
provide a rational basis for pricing.

2- those based on optimization techniques

e.g. Thermoeconomic Functional Analysis, Engineering Functional Analysis.

optimization methods are used to find optimum design or operation conditions.

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 What is the Exergy Cost?
The exergy cost of a mass or energy stream is the amount of exergy required
to produce it.

For example in the case of the cogeneration plant depicted in Figure 3, the
exergy cost of the net power is the exergy provided by coal or natural gas to
generate the electrical power delivered to the net work by the cogeneration
plant. 110
 Unit exergy cost

The unit exergy cost of a mass or energy stream

represents the amount of exergy required to obtain a unit
of exergy of the product stream.
Ei represents the exergy of the i-th product stream
and
Ei* its exergy cost,

the unit average exergy cost is written as:

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 Exergoeconomic cost

The monetary or exergoeconomic cost, takes into account the

economic cost of the consumed fuel cF (i.e. its market price $/MJ) as
well as the cost of the installation and the operation of the plant, Z
($/s), and defines the amount of money to generate a mass and/or
energy flow. The economic cost balance could be written as:

These costs measure the economic efficiency of a process.

the unit monetary cost (also called exergoeconomic cost)

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‫رواﺑﻂ ﮐﻤﮑﯽ ﺑﺮاي ﺣﻞ ﻣﺴﺎﻟﻪ‬

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‫رواﺑﻂ ﮐﻤﮑﯽ ﺑﺮاي ﺣﻞ ﻣﺴﺎﻟﻪ‬

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using the values for c4* reported in the table, Figure 8.3 giving the cost of the
low pressure steam per unit of mass as a function of the turbine exhaust
pressure can be developed.

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‫ﭼﺮاﯾﯽ ﺗﺤﻠﯿﻞ اﮔﺰرژي‪:‬‬

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Aggregation Level

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8.1.3 Cost Rates, Auxiliary Relations, and Average Costs
Associated with Fuel and Product

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Turbine:

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Heat Exchanger:

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Boiler:

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 ‫ﺗﺤﻠﯿﻞ اﮔﺰرژي ﺳﯿﺴﺘﻢ ﺗﻮﻟﯿﺪ ﻫﻤﺰﻣﺎن ﻗﺪرت و ﺣﺮارت )‪(CHP‬‬
‫‪8‬‬ ‫)‪(GT+HRSG‬‬
‫‪Water‬‬

‫‪9‬‬
‫‪Steam‬‬

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8.2.1 Cost of Exergy Destruction
In the cost balance formulated for a component (e.g., Equations 8.4 and 8.19),
there is no cost term directly associated with exergy destruction. Accordingly,
the cost associated with the exergy destruction in a component or process is a
hidden cost, but a very important one, that can be revealed only through a
thermoeconomic analysis. The effect of exergy destruction can be
demonstrated by combining Equations 3.28 and 8.19:

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by using Equation 8.24a to estimate the cost of exergy
destruction, (CD,k)w, e take a prudent approach with respect to
the required capital investment costs. This philosophy is
consistent with common practice in the design of industrial
systems.

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‫ارزﯾﺎﺑﯽ اﮔﺰرژي‪-‬اﻗﺘﺼﺎدي ﺳﯿﺴﺘﻢ ﺗﻮﻟﯿﺪ ﻫﻤﺰﻣﺎن ﻗﺪرت و ﺣﺮارت‬
‫‪8‬‬ ‫)‪(GT+HRSG) (CHP‬‬
‫‪Water‬‬

‫‪9‬‬
‫‪Steam‬‬

‫‪1‬‬

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 C12 (net power)

C10 C9 (steam)
(natural Total System
gas)
C7 (effluent)

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