Energy, Exergy and Economic (3E) Analysis and

Optimization of a Combined Heat and Power (CHP)

Plant
Nguyen Minh Huy Dang Van Hai Nguyen Minh Phu
Faculty of Mechanical Engineering Faculty of Mechanical Engineering Faculty of Heat and Refrigeration
Ho Chi Minh City University of Food Ho Chi Minh City University of Food Engineering
Industry Industry Industrial University of Ho Chi Minh
Ho Chi Minh City, Viet Nam Ho Chi Minh City, Viet Nam City
Ho Chi Minh City, Viet Nam
nguyenminhphu@iuh.edu.vn

Abstract— In this paper, a combined gas–steam power plant

using exhaust heat to produce hot water is estimated in terms of
energy, exergy and economics (3E). The examined parameters
included the pressure ratio of the air compressor (rp), the gas
turbine inlet temperature, the steam turbine inlet pressure and
2021 24th International Conference on Mechatronics Technology (ICMT) | 978-1-6654-2459-2/21/$31.00 ©2021 IEEE | DOI: 10.1109/ICMT53429.2021.9687234
I. INTRODUCTION
The far-reaching energy crisis poses challenges for the
world to solve the energy problems. In which, fossil fuels are
gradually depleted due to the majority of fuel burning in

the condenser pressure to evaluate thermal performance, exergy

thermal power plants [1]. Most thermal power plants in the
performance, and total annual cost (TAC). The mathematical
model was established and solved in the environment of
world use a combined gas-vapor cycle to generate electricity
Engineering Equation Solver (EES) with comparison of results [2], causing concern to mankind in both energy and
from the Aspen HYSYS simulator. The calculation results show environmental issues [3]. Another aspect to evaluate thermal
that the exergy efficiency is maximum at rp = 11. TAC is strongly plants is the work potential of heat source and the
influenced by gas cycle operating parameters. The minimum irreversibility of each device in the cycle through exergy
TAC can obtain at the steam turbine inlet pressure of 5,300 kPa. analysis [4, 5]. Lee [6] analyzed a gas turbine cycle by
Overall optimization reveals maximum efficiencies and adopting energy and exergy (2E) approaches. Exergy
minimum cost at pressure ratio of 8.65, gas turbine inlet efficiency of 51% and condenser having the largest
temperature of 1460 K, the smallest condenser pressure, and the irreversibility were reported. Ahmadi et al. [7] performed 3E
highest steam turbine inlet pressure. (Energy, Exergy and Environmental) analysis for combined
heat and power (CHP) plant. The proposed plant can achieve
Keywords—3E analysis, CHP, Weighted sum method, EES, the efficiency up to 56.8%. Moreover, economic aspect
HYSYS associated with capital cost and operating cost should be
Nomenclature considered as an assessment criterion [8]. Rad and Najafabadi
A heat transfer surface (m2) [9] attempted to optimize a biomass and natural gas-fired gas
crf capital recovery factor turbine cycle using 4E base, i.e., energetic, exergetic,
h enthalpy (kJ/kg)
i bank interest rate
economic, and environmental. The suitable concentration of
LMTD logarithmic mean temperature difference (K) fuels was deduced to minimize price objective function.
m& working fluid mass flow rate (kg/s) Moghimi et al. [10] investigated a combined cooling, heating,
n system lifetime (year) and power (CCHP) system by 4E analysis. The cooling effect
P pressure (kPa) was provided by an ejector refrigeration cycle. The CCHP
Q& heat rate (kW) system yields better exergy and energy efficiencies than those
s entropy (kJ/kg-K) of a traditional cycle. Recently, Roy and Mandal [11] carried
t operational time in one year (hour) out 4E analysis for a cascade refrigeration cycle with various
T temperature (K)
TAC total annual cost ($/year) refrigerants. A certain working fluid pair was found to
U total heat transfer coefficient (kW/m2-K) maximize exergy efficiency and minimize annual plant cost.
W& power (kW) More recently, Moghadam et al. [12] appraised 4E
xf specific flow exergy (kJ/kg) performance of a CCHP plant where the cooling was produced
X& des exergy destruction rate (kW) by the Kalina cycle. They proved that the Kalina cycle has a
Z purchase cost ($) low exergy destruction.
Greek symbols
η efficiency From the above analysis, it can be seen the importance of
Subscripts and superscripts thermo-economic analysis (2E to 4E) of integrated energy
0 environmental conditions systems. However, 3E analysis (energy, exergy, and
a air/flue gas economic) of a CHP plant is lack of an investigation. The
c compressor
cc combustion chamber current research performs a parametric study of effect of key
cond condenser parameters on efficiencies and plant costs. Furthermore, an
cw cooling water optimization issue is employed to seek optimal operating
DWH domestic water heater conditions with respect to extreme solutions.
env environment
gt combustion turbine
HRSG heat recovery steam generator II. MODEL DESCRIPTIONS
p feedwater pump
s steam A. CHP plant description
st water vapor turbine A combined cycle power plant with a net produced power
th thermal
x exergy
of 50 MW is investigated as shown in Figure 1. Air enters the

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compressor of the gas turbine cycle at atmospheric pressure Net produced power from the combined gas and vapor
and temperature. The compressor has a pressure ratio rp and cycle:
isentropic efficiency of 80%. After heating in the combustion
chamber, the gas enters the gas turbine in state 3. Then, the W&net = W& gt + W&st − W& p − W&c (5)
gas expands in the gas turbine that has an isentropic
performance of 85%. The gas leaves the turbine at 110.3 kPa.
The hot gas passes through the heat recovery boiler generator Condenser:
(HRSG) and leaves at 101.4 kPa and 400 K. The gas leaving
HRSG is passed through domestic water heater (DWH) to heat Q& cond = m& s ( h7 − h8 ) (6)
water from 293.2 K to 333.2 K at a pressure of 300 kPa [10].
For the sake of simplicity, the combustion chamber is assumed Heat recovery steam generator:
as a heater, and the flue gas is treated as air [13].
Q& HRSG = m& a ( h4 − h5 ) (7)

Combustion chamber:

Q& cc = m& a ( h3 − h2 ) (8)

Domestic water heater:

Q& DWH = m& cw ( h14 − h13 ) (9)

Energy performance criterion is defined according to first

law of thermodynamics [14]:

W&net + Q& DWH

ηth = (10)
Q&cc
Fig. 1. The CHP plant under consideration

For the steam cycle, the steam enters the turbine at 744.3
K. The vapor expands through the steam turbine that has an
isentropic efficiency of 78%, to the condenser pressure P7.
Condensate leaving the condenser is of a saturated liquid state
under isobaric condition. The condensate water is pumped to
high pressure P9, and the feed water pump has an is entropic
efficiency of 60%. The condenser is cooled by water, the
water enters at 288.7 K and leaves at 308.2 K.
B. Energy analysis
Neglecting kinetic energy and potential energy changes,
power rate or heat rate of each component of the CHP plant
can be written as:
Gas turbine:
C. Exergy analysis
From the thermodynamic properties of the operation fluid
flows in the energy model above, the specific flow exergy for
each state is calculated from the equation below while
ignoring the kinetic energy and potential energy:
x f = h − h0 − T0 ( s − s0 ) (11)
Once the flow exergy is determined, the exergy
destruction of each component is calculated as follows:
Compressor:
X& des,c = W&c + m& a ( x f,1 − x f,2 ) (12)

W& gt = m& a ( h3 − h4 ) (1) Gas turbine:

Compressor: X& des,gt = −W& gt + m& a ( x f,3 − x f,4 ) (13)

W&c = m& a ( h2 − h1 ) (2)

Heat recovery steam generator:
Steam turbine:
X& des,HRSG = ( m& a x f,4 + m& s x f,9 ) − ( m& a x f,5 + m& s x f,6 ) (14)
W&st = m& s ( h6 − h7 ) (3)
Steam turbine:
Feed water pump:
X& des,st = −W& st + m& s ( x f,6 − x f,7 ) (15)
W& p = m& s ( h9 − h8 ) (4)
Condenser:

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 X& des,cond = ( m& s x f,7 + m& w x f,10 ) − ( m& s x f,8 + m& w x f,11 ) (16)  m& a   p3 
Z gt =  266.3
  ln   1 + exp ( 0.036T3 − 54.4 ) 
 0.92 − ηgt   p4 
Feed water pump: (27)

X& des, p = W& p + m& s ( x f,8 − x f,9 ) (17) Steam turbine:

Domestic water heater:   0.05 3    T6 − 866  

Z st = 3880.5 P6 0.7
1 +    1 + 5exp   (28)
X& des,DWH = ( m& a x f,5 + m& cw x f,13 ) − ( m& a x f,12 + m& cw x f,14 ) (18)   1 − ηst     10.42  

Exergy loss of flue gas dissipated to the environment: Condenser:

Zcond = 1773m& s (29)

X& loss,a − env = m& a ( x f,12 − x f,1 ) (19)
Feed water pump:
Exergy loss of cooling water dissipated to the
environment:
 0.2 
Z p = 705.48 p9 0.71 1 +  (30)
X& loss,cw − env = m& w ( x f,11 − x f,10 ) (20)  1− ηp
 

Total exergy destruction can be then determined as: Compressor:

X& des,TOTAL = X& des,c + X& des,gt + X& des,HRSG + X& des,st +  m& a 
(21) Z c =  39.5  rp ln ( rp ) (31)
 0 .9 − ηc 
X& des,cond + X& des, p + X& des,DWH + X& loss,a − env + X& loss,cw − env

The input exergy is the flow exergy difference of the air Purchase cost of heat exchanger can be found from its heat
through the combustion chamber: transfer area:

Z HRSG = 130 ( AHRSG / 0.093)

0.78
X& in = m& a ( x f,3 − x f,2 ) (22) (32)

Z DWH = 130 ( ADWH / 0.093)

0.78
The exergy outputs come from the net power delivery and (33)
useful exergy of heating water for domestic uses [12]:
where the heat transfer area (A) could be evaluated by the total
X& out = W&net + m& cw x f,14 − m& cw x f,13 (23) heat transfer coefficient (U) together with logarithmic mean
temperature difference (LMTD) [12]:
The exergy balance equation is obtained as:
(T4 − T6 ) − (T5 − T9 ) (34)
LMTDHRSG =
X& in = X& out + X& des,TOTAL (24)  T −T 
ln  4 6 
 T5 − T9 
The exergy efficiency can be defined as:
Q& HRSG
ηx = X& out / X& in (25) AHRSG = (35)
U HRSG LMTDHRSG
D. Economic analysis and multiple objective optimization
To perform the economic analysis, purchase cost of each (T5 − T14 ) − (T12 − T13 ) (36)
LMTDDWH =
device in the plant must be specified. The cost can be  T −T 
estimated via operating parameters of a component as follows ln  5 14 
[10, 12]:  T12 − T13 

Combustion chamber: Q& DWH

ADWH = (37)
 
U DWH LMTDDWH
Z cc =  25.6
m& a
 1 + exp ( 0.018T3 − 26.4 ) 
(26)
 0.995 − P3 / P2 
Capital cost is sum of purchase cost of components:
where P3/P2= 0.95 [10]
Ccapital = Zc + Z cc + Z gt + Z st + Zcond + Z p + Z HRSG + Z DWH (38)
Gas turbine:

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 The operating cost (OC) consists of natural gas cost Table I shows the parameters inputted the mathematical
(NGcost) model to evaluate 3E for the CHP plant. The independent
parameters are presented in Table II to examine their effect on
OC = NGcost (W& gt − W&c ) t (39) the 3E indicators. From the range of key parameters, the
maximum and minimum criteria are determined and entered
the multi-objective function (multiObj). A basic case is shown
where NGcost = 0.02 $/kWh [9]. in the table to calculate typical parameters and validation
Total annual cost (TAC) can be evaluated as [15]: comparison. The above 3E modeling is programmed and
calculated in EES software [16]. Thermodynamic properties
of all states in the CHP plant (base case) are presented in Table
TAC = crfCcapital + OC (40) III. From these thermodynamic properties, heat and power
rates and exergoeconomic quantities are quantified. Table IV
where crf is capital recovery factor. shows a comparison of the heat rate results from EES and
simulation of the process flow diagram in Aspen HYSYS [17,
i 18] for the base case. The results show a very small difference
crf = (41) between the coded prediction and that of the simulator.
1 − (1 + i )
−n
Therefore, the EES program performs further computation to
investigate 3E of the CHP plant.
In the current work, there are three objectives which
should be optimized. The energy performance and exergy TABLE II. THE INVESTIGATED VARIABLES
effectiveness need to maximize and the total annual cost Variable Range Base case
should minimize. The multi-objective optimization can be
simplified by using the weighted sum method with equal Pressure ratio of air compressor rp = 5-15 12
P2/P1
weights [8]:
Outlet temperature of combustion 1300 - 1500 1366
chamber, T3 [K]
ηth − ηth ,min ηx − ηx ,min TAC − TACmin
multiObj = + − Pressure of boiler [kPa] 5000 – 10000 7584
ηth ,max − ηth ,min ηx ,max − ηx ,min TACmax − TACmin
Pressure of condenser [kPa] 10 – 20 13.79

(42)
TABLE III. THERMODYNAMIC PROPERTIES OF STATES IN THE CHP
PLANT OF THE BASE CASE
where negative one is multiplied to the TAC objective to
maximize the multiple objective function (multiObj). Flow
State Temp., Pressure, Enthalpy, Entropy, Exergy, rate,
TABLE I. INPUT PARAMETERS K kPa kJ/kg kJ/kg-K kJ/kg kg/s

Term Value Unit 1 294.3 101.4 294.5 6.847 0 140.9

Pressure of states 0, 1, 5, 10, 11, and 12 101.4 kPa 2 664.7 1216 676.2 6.969 345.9 140.9

Temperature of states 0 and 1 294.3 K 3 1366 1155 1477 7.8 902 140.9

Isentropic performance of a compressor 80 % 4 853.3 110.3 881.5 7.93 268.2 140.9

Isentropic performance of a gas turbine 85 % 5 400 101.4 401.1 7.156 15.52 140.9

Gas turbine outlet pressure 110.3 kPa 6 744.3 7584 3332 6.659 3093 21.82

HRSG outlet temperature 399.8 K 7 325.4 13.79 2408 7.46 1933 21.82

Isentropic efficiency of steam turbine 78 % 8 325.4 13.79 218.7 0.7327 1723 21.82

Net produced power 50 MW 9 326.9 7584 231.5 0.7484 1732 21.82

Isentropic efficiency of pump 60 % 10 288.7 101.4 65.24 0.2323 1717 587.3

DWH inlet and outlet pressure of water 300 kPa 11 308.2 101.4 146.6 0.505 1718 587.3
DWH inlet water temperature 293.2 K 12 353.2 101.4 353.9 7.031 5.252 140.9
DWH outlet water temperature 333.2 K 13 293.2 300 84.12 0.2961 1717 39.76
DWH outlet gas temperature 353.2 K 14 333.2 300 251.4 0.831 1727 39.76
2
Total heat transfer coefficient of HRSG 1.6 kW/m -K
Total heat transfer coefficient of DWH 1 kW/m2-K TABLE IV. CONFIRMATION RESULTS OF HEAT RATES FOR THE BASE
CASE
Operating year 20 Year
EES HYSYS Discrepancy (%)
Interest rate 12 %
Domestic water heater (MW) 6.651 6.6 0.8
Working hours per year 7000 Hour
HRSG (MW) 67.7 67.3 0.6
Intake cooling water temperature 288.7 K
Combustion chamber (MW) 112.789 112 0.7
Exit cooling water temperature 308.2 K
Condenser (MW) 47.8 47.7 0.2

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 III. RESULTS AND DISCUSSION
The influence of a pressure ratio of the working fluid
compressor on the criteria is presented in Figure 2 while the
remaining independent parameters are fixed as the base case.
When the pressure ratio raises, the thermal efficiency can be
improved. This is mainly because the efficiency of the gas
turbine system raises with the pressure ratio as indicated in
open literatures. The exergy efficiency is the greatest at rp =
11 due to the trade-off between the exergy destruction increase
of the compressor and the gas turbine and the sharply decrease
in the exergy destruction of the HRSG with rp. The exergy
destruction of the air compressor and the turbine increases
with the pressure ratio due to the increased temperature of the
air relative to the dead state. Increasing the pressure ratio
reduces the air flow rate. Hence, the exergy destruction of the
HRSG decreases. TAC increased strongly with rp due to the
fact that the investment cost of compressor and gas turbine
was strong function of pressure.
Figure 3 shows the exergy contribution of the components
in the CHP plant. The greatest exergy destruction can be found
in the HRSG followed by the turbines. In the HRSG, the
presence of a high temperature difference between flue gas
and water flow is a major cause of irreversibility [10, 19].
Exergy destructions of DWH, water pump, gas and cooling
water dummy rejected to the environment have negligible
magnitudes.
Effects of the vapor cycle parameters on the objectives are
shown in Figures 5-7. It can be observed in Figure 5 that when
increasing the steam turbine inlet pressure, the efficiencies
increase slightly. This is because of the increased Rankine
cycle thermal efficiency with boiler pressure. Increasing
boiling temperature reduces the temperature difference
between exhaust gas and water vapor in the HRSG resulting
in increased exergy efficiency. From Figures 5 and 6 it is
implied that when the pressure P6 is greater than 5,300 kPa,
the TAC increases with the pressure. This is obviously due to
the increased cost of purchasing pump and steam turbine. It is
deduced that the total cost obtains a minimum at P6 = 5,300
kPa. Increased steam cycle efficiency reduces gas flow rate in
the gas turbine cycle leading to lower costs of purchasing
compressor and gas turbine. So, the total cost reaches a
minimum at 5,300 kPa.

Fig. 4. Effect of gas turbine intake temperature

Fig. 2. Effect of pressure ratio of air compressor

Fig. 5. Effect of steam turbine inlet pressure

Fig. 3. Grassmann diagram of exergy destruction for the base case

Figure 4 exhibits the impact of the turbine intake air

temperature on efficiencies and cost. As T3 increases,
although the exergy destruction of the HRSG increases, the
irreversibility of both the compressor and the gas turbine
decreases, resulting in increased exergy efficiency. The gas
flow rate decreases sharply with the increase in the gas turbine
intake temperature. Therefore, the efficiency of the gas turbine
cycle increases leading to increase in the thermal efficiency of
the CHP plant. In contrast, TAC increases notably with the
temperature of the exhaust gas entering the turbine. This
increase is due to the high contribution of the cost of
Fig. 6. Variation of total annual cost with steam turbine inlet pressure
purchasing gas turbine and compressor.

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 Figure 7 shows the ratings by condenser pressure. It is
known that Rankine cycle efficiency decreases with
increasing condensation pressure. Hence, thermal
performance of the combined cycle reduces with P7, as
expected. In addition, increasing condensation pressure
increases the temperature difference between condensate and
cooling water, thus reducing exergy performance. Total cost
increases slightly with condensation pressure. This is due to a
decrease in steam cycle efficiency, thus increasing the gas
cycle operating parameters which result in increase in the cost
of compressor and gas turbine.
From the TAC analysis results, it is clear that the TAC
strongly depends on the operating parameters of the gas cycle.
This is because the gas cycle components are more expensive
than the steam cycle. In addition, gas cycle takes charge of
larger duty because it is the main cycle for net power
production.
Finally, the optimum operating parameters should be
determined to maximize performances and minimize TAC.
Calculated results from the weighted sum method show the
maximum thermal efficiency of 51.13%, the maximum exergy
performance of 67.06% and the smallest TAC of 4633934
USD/year at the optimum values of rp = 8.65, P6 = 10000 kPa;
P7 = 5 kPa and T3 = 1460 K. Thus, within the studied range,
P6 and P7 are respectively the highest and the smallest to reach
the maximum of the objective function. Figure 8 shows the
values of the multi-objective function with rp and T3 at the
optimum P6 and P7. It can be seen that the maximum value of
the function occurs at rp = 8.65 and T3 = 1460 K. This
confirmed the accuracy in prediction of the weighted sum
method.
Fig. 7. Effect of condenser pressure
Fig. 8. Value of multiple objective function with rp and T3 at optimum P6 =
10000 kPa and P7 = 5 kPa
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IV. CONCLUSIONS
An investigation of the combined cycle thermal power
plant was performed in this paper. The operating parameters
of the gas turbine system and the steam turbine system are
varied to analyze and find high efficiencies and low costs. The
main results drawn from the study are as follows:
- Total annual cost is strongly influenced by gas turbine
cycle parameters
- Minimum total cost happens at a certain steam turbine
inlet pressure
- The exergy performance of CHP system reaches its
greatest value at compressor pressure ratio of 11.
- Maximum efficiencies and minimum cost are identified
at pressure ratio of 8.65 and gas turbine inlet temperature of
1460 K.
- Exergy destruction of HRSG and turbines is larger than
other components.
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