The document discusses high grade and low grade energy sources. High grade energy sources include mechanical, electrical, water, wind and tidal power which can be completely converted to work without loss. Low grade energy sources like heat can only partially be converted to work. Low grade energy consists of exergy (available energy) and anergy (unavailable energy). The maximum useful work obtainable from a heat source is called its availability or exergy. The minimum energy that must be rejected according to the second law of thermodynamics is called anergy. Availability reduces as the temperature difference between a system and its surroundings decreases.