This paper consists of two parts. Part 1 deals with the thermodynamic and thermoeconomic methodology of a trigeneration (TRIGEN) system with a rated output of 6.5 MW gas-diesel engine while the application of the methodology is presented in Part 2. The system has been installed in the Eskisehir Industry Estate Zone in Turkey. Thermodynamic methodology includes the relations and performance parameters for energy and exergy analysis, while thermoeconomic methodology covers the cost balance relations, cost of products and thermodynamic inefficiencies, relative cost difference and exergoeconomic factor. (C) 2010 Elsevier Ltd. All rights reserved.