Farzad Mohammadkhani - MSc Student, Department of Mechanical Engineering, Urmia University, Iran
Shahram Khalilarya - Associate Professor, Department of Mechanical Engineering, Urmia University, Iran
Iraj Mirzaee - Associate Professor, Department of Mechanical Engineering, Urmia University, Iran
Sahand Kargarnejad - MSc Degree, Department of Mechanical Engineering, Urmia University of Technology, Iran

Exergoeconomic (or thermoeconomic) analysis methodologies combine economic and thermodynamic analysis by applying the cost concept to exergy. This article deals with the exergoeconomic analysis of internal combustion engine based Combined Heat and Power (CHP) system. Energy and exergy balances are applied to each system component. Also cost balances and auxiliary equations are applied to subsystems in the plant, hence, cost formation in the plant is observed. The exergoeconomic analysis is based on specific exergy costing (SPECO) approach. The system under survey in this work is a diesel engine cogeneration system that produces 250 [kW] of electricity and increases the temperature of water from 80 [ºC] to 120 [ºC] at 2 [bar] and 1.75 [kg/s]. This system is very suitable choice to provide required work and heat for residential blocks, large markets and etc. The analysis shows that for present design configuration, more attention should be paid to the heat exchanger and diesel engine, from exergoeconomic viewpoint

exergy, exergoeconomics, cost, cogeneration