Correct Answer - Option 2 : loss of exergy is directly proportional to rate of entropy generation
Explanation:
Exergy (or) Available Energy:
The maximum portion of energy that could be converted into useful work by ideal processes that reduce the system to a dead state(a state in equilibrium with the earth and its atmosphere).
Wmax = I + Wact
where I = Irreversibility (loss of available energy)
According to the Gouy-Stodola theorem, the loss of available energy (Irreversibility) is given by To(ΔS)gen
where To is the atmospheric temperature and (ΔS)gen is the entropy generation due to the heat transfer from one reservoir to another reservoir.
Wmax = To(ΔS)gen + Wact
∴ Loss of exergy is directly proportional to the rate of entropy generation.