In this paper, exergy method is applied to analyze the gas turbine cycle cogeneration with inlet air cooling and evaporative aftercooling of the compressor discharge. The exergy destruction rate in each component of cogeneration is evaluated in detail. The effects of some main parameters on the exergy destruction and exergy efficiency of the cycle are investigated. The most significant exergy destruction rates in the cycle are in combustion chamber, heat recovery steam generator and regenerative heat exchanger. The overall pressure ratio and turbine inlet temperature have significant effect on exergy destruction in most of the components of cogeneration. The results obtained from the analysis show that inlet air cooling along with evaporative aftercooling has an obvious increase in the energy and exergy efficiency compared to the basic gas turbine cycle cogeneration. It is further shown that the first-law efficiency, power to heat ratio and exergy efficiency of the cogeneration cycle significantly vary with the change in overall pressure ratio and turbine inlet temperature but the change in process heat pressure (C) 2011 Elsevier Ltd. All rights reserved.