In thermodynamics, the exergy of a system is the maximum useful work possible during a process that brings the system

into equilibrium with a heat reservoir. When the surroundings are the reservoir, exergy is the potential of a system to cause a change as it achieves equilibrium with its environment. Exergy is the energy that is available to be used. After the system and surroundings reach equilibrium, the exergy is zero.
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Exergy is the maximal work, attainable in given reference state without generalized friction. In the closed system energy is conserved but exergy is destroyed due to generalized friction.
Low-grade energy: Based on the thermodynamic concepts, an energy source can be called as high-grade or low-grade, depending the ease with which it can be converted into other forms. Thus electrical energy is called a high-grade energy, as it is very easy to convert almost all of it into other energy forms such as thermal energy (say by using an electrical heater). Whereas, it is not possible to convert thermal energy completely into electrical energy (typical efficiencies of thermal power plants are around 30 percent), hence thermal energy is called a low-grade energy. Naturally, high-grade energy sources are more expensive compared to low-grade energy sources.