Distributed power production systems, such as residential cogeneration, are a promising alternative to the energy and environmentally intensive centralized power production. A key factor in realizing the potential of distributed systems is their operational capabilities under varying conditions and the interactions of the operation with the design configuration. In this work we present a systematic approach for the optimal design, control and operation of residential scale CHP units. Based on out recently. presented PAROC framework, the approach features a detailed dynamic model describing the cogeneration of heat and power, combined with conventional and advanced control schemes. It is shown that a simultaneous approach delivers distinct energy, environmental and financial benefits. (C) 2016 Elsevier Ltd. All rights reserved.