The optimization of the heat recovery steam generator (HRSG) is particularly interesting for the combined plants design in order to maximise the work obtained in the vapour cycle. A detailed optimization of the HRSG is a very difficult problem, depending on several variables. The first step is represented by the optimization of the operating parameters. These are the number of pressure levels, the pressures, the mass flow ratio, and the inlet temperatures to the HRSG sections. The operating parameters can be determined by means both of a thermodynamic and of a thermoeconomic analysis, minimising a suitable objective function by analytical or numerical mathematical methods. In the paper, thermodynamic optimization is based on the minimization of exergy losses, while the thermoeconomic optimization is based on the minimization of the total HRSG cost, after the reduction to a common monetary base of the costs of exergy losses and of installation. (C) 2002 Elsevier Ltd. All rights reserved.