Conventional exergy-based analysis methods are used for evaluating the performance of the energy conversation systems. Conventional exergy-based analyses identify the sources, amounts, and reasons of irreversibilities (exergy destructions), costs and environmental effects, and provide a general direction for improvement. However, interactions between system components (endogenous/exogenous) and technical limitations (avoidable/unavoidable) cannot be identified with any conventional analysis. Hence, the real potential for improvement and optimization strategies can be misguided. Advanced exergy based analysis seeks to overcome this limitation. An air source heat pump unit was assessed applying conventional and advanced exergy analysis approaches respectively. Avoidable/unavoidable and endogenous/exogenous exergy destructions, modified exergy efficiencies and modified exergy losses ratios were calculated for every single component of the system. The results showed that while the evaporator and condenser efficiencies could be upgraded via constructional enhancements to the overall system and other system components, internal operating conditions were mainly responsible of the inefficiencies regarding with the compressor. The analysis demonstrated that while it was possible to improve evaporator and condenser efficiency by making constructive enhancements to whole system design, the efficiency of the compressor was mainly determined by the internal conditions in which the compressor operated.
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