Title: Integrative approach of thermoeconomics to obtain unit cost of products in power systems

Authors: Ho-Young Kwak

Addresses: Mechanical Engineering Department, Chung-Ang University, 84 Huksuk-ro, Dongjak-Ku, Seoul, 06974, South Korea; Blue Economy Strategy Institute Co. Ltd., 150 Dogok-ro, Gangnam-gu, Seoul 06260, South Korea

Abstract: In this study, it is aimed to show how the same unit cost of electricity generated by a thermal system is obtained with three different thermoeconomic approaches based on exergy analysis. These approaches are exergetic cost theory (ECT) by Lozano and Valero (1993), specific exergy costing (SPECO) by Lazzaretto and Tsatsaronis (2006) and modified productive structure analysis (MOPSA) by Kim et al. (1998). These approaches with some different modifications are applied to CGAM system. It is found that the ECT becomes SPECO when SPECO's fuel-rule and product-rule are applied to the ECT and both thermoeconomic methods offer the same unit cost of electricity from the CGAM system. The unit costs of electricity and steam by ECT and SPECO are found to be 7.34 $ /GJ and 10.62 $ /GJ, respectively. The unit cost of electricity and steam is determined to be 8.11 $ /GJ and 10.24 $ /GJ, respectively, by the MOPSA method. In this study, it is also shown how the unit cost of products calculated by ECT and SPECO for the CGAM system equals the unit cost of products obtained from MOPSA.

Keywords: CGAM; exergetic cost theory; ECT; specific exergy costing; SPECO; modified productive structure analysis; MOPSA.

DOI: 10.1504/IJEX.2023.134608

International Journal of Exergy, 2023 Vol.42 No.2, pp.216 - 228

Received: 27 Jan 2023
Accepted: 04 May 2023
Published online: 30 Oct 2023 *

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