Thermoeconomics uses thermodynamics in conjunction with economic analysis to achieve improved cost benefit and quality in design. The thermodynamic analysis uses the second law and availability or exergy, which is a measure of the usefulness of energy. This paper uses exergy rather than energy in the thermoeconomic analysis and system optimization. The objective of thermoeconomics is to minimize a cost function, which is usually capital or life-cycle costs, which are expressed in terms of thermodynamic variables of the system. This will establish the most cost-effective design parameters for the specific design configuration analyzed. This paper presents the methods for applying a thermoeconomic analysis to several HVAC systems. The design conditions are analyzed, providing detailed exergy costing related to the plant investment and operating costs of the base design. By reviewing these, the most appropriate system variables are selected and the system cost is optimized, therefore achieving important life-cycle cost and capital investment savings.

Units: Dual