A reasonable cost allocation in cogeneration is very important for plant and heating consumer. According to the different roles of anergy and exergy in the heat supply process of cogeneration, the reduced exergy model for cogeneration cost allocation is formulated by introducing the concept of the reduced exergy and available anergy. This model considers not only the energy differences in quantity and quality, but also the roles of the available anergy and exergy. Furthermore, the contribution of the available anergy is expressed as a user factor, which can reflect different utilization for different practical conditions. The results for several practical units verify that the reduced exergy model is more rational, convenient and practical than existing models in theory and practice.

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