Theory of the exergetic cost

The theoretical basis and several applications of the theory of exergetic cost, a major approach to the field of thermoeconomics, are presented in this paper. The fundamentals and criteria that enable the description of the cost formation process and the assessment of the efficiency in energy systems are formulated. The use of the second law of thermodynamics through a systematic use of the exergy concept, the fuel-product concept based on the productive purpose of a component within an energy system, and the mathematical formalization provided by systems theory are the cornerstones of the theory. The methodology presented here is a powerful tool in the analysis of energy systems. The following applications are presented: (i) assessment of alternatives for energy savings, (ii) cost allocation, (iii) operation optimization, (iv) local optimization of subsystems, (v) energy audits and assessment of fuel impact of malfunctions.