This paper presents the engineering design and theoretical exergetic analyses for a container-housed reciprocating engine. The exergy analysis conducted was based on the first and second laws of thermodynamics for power generation systems. Using thermographic inspection, the heat dissipated by each one of the 28 elements under consideration in the engine container was assessed, together with the mass flow rate of air supplied to the cab and the air temperature at the inlet and outlet. This information is essential for the proper design of the ventilation system needed to disseminate the heat generated inside the container-housed unit. The energy balance and corresponding exergy balance were drawn up using the values thus obtained and the information available on the engine. The engine efficiency rates were evaluated on both an energy and exergy basis, taking into account that heat from the cooling circuit and exhaust fumes are used for CHP. Finally, thermoeconomics was applied to calculate the costs of the electricity and useful heat energy produced by the engine. The result of this study should be to optimize the design of container-housed CHP systems, showing where exergy losses occur and identifying areas of improvement.