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Abstract
A new method has been employed in this research that optimizes a power generation system by maximizing the first and second law efficiencies and minimizing the entropy generation. Mass flow rates of pollutants and related external social cost of air pollution have been considered in estimating the electricity production cost. The effects of regenerative and CHP heat exchangers on power production, efficiencies, and production cost have been evaluated. The results show that a single regenerative heat exchanger lowers NOx, CO, and CO2 emissions by 15%, 40%, and 0.4%, respectively, and decreases the electricity production cost by nearly 18%. A single CHP heat exchanger has little influence on concentrations of NOx, CO, and CO2 but lowers the electricity production cost by about 36%. It has also been concluded that the values of entropy generation and power output are not much affected by the CHP heat exchanger but the regenerative heat exchanger lowers the values of power output by nearly 8%. A combination of regenerative and CHP heat exchangers decreases the electricity production cost by more than 50%.