Waste heat that is available in the flue gas of power plant stacks is a potential source of useful thermal power. In reclaiming and utilizing this waste heat without compromising plant efficiency, stacks usually need to be equipped with forced-draught fans in order to compensate for the decrease in natural draught while stack gas is cooled. In addition, pumps are used to circulate the heat transfer fluid. All of these parasitic operations require electrical power. Electrical power has unit exergy of almost 1 W/W. On the contrary, the thermal power exergy that is claimed from the low-enthalpy flue gas has much lower unit exergy. Therefore, from an exergetic point of view, the additional electrical exergy that is required to drive pumps and fans must not exceed the thermal exergy claimed. Based on the First-Law of Thermodynamics, the net energy that is saved may be positive with an apparently high coefficient of performance; however, the same generally does not hold true for the Second-Law. This is a matter of determining the optimum amount of heat to be claimed and the most rational method of utilizing this heat for maximum net exergy gain from the process, under variable outdoor conditions and the plant operations. The four main methods were compared. These are (a) electricity generation by thermoelectric generators, electricity generation with an Organic-Rankine Cycle with (b) or without (c) a heat pump, and (d) the direct use of the thermal exergy that is gained in a district energy system. The comparison of these methods shows that exergy-rationality is the best for method (b). A new analytical optimization algorithm and the exergy-based optimum control strategy were developed, which determine the optimum pump flow rate of the heat recovery system and then calculate how much forced-draft fan power is required in the stack at dynamic operating conditions. Robust design metrics were established to maximize the net exergy gain, including an exergy-based coefficient of performance. Parametric studies indicate that the exergetic approach provides a better insight by showing that the amount of heat that can be optimally recovered is much different than the values given by classical economic and energy efficiency considerations. A case study was performed for method (d), which shows that, without any exergy rationality-based control algorithm and design method, the flue gas heat recovery may not be feasible in district energy systems or any other methods of utilization of the heat recovered. The study has implications in the field, since most of the waste heat recovery units in industrial applications, which are designed based on the First-Law of Thermodynamics, result in exergy loss instead of exergy gain, and are therefore responsible for more carbon dioxide emissions. These applications must be retrofitted with new exergy-based controllers for variable speed pumps and fans with optimally selected capacities.