Fuel cell-based CHP systems are very attractive for stationary energy generation, since they allow production of electricity and heat in a decentralised, quiet, efficient and environmentally friendly way. As a means of evaluating this new technology, Enel Produzione installed a beta-version fuel cell CHP system, supplied by H-Power, at its experimental area sited in Livomo (Italy), and submitted it to a series of tests. The system is a co-generative unit, converting natural gas into electricity and heat: the former is delivered to local loads using electric load following capability; the latter is delivered to the experimental area hydraulic refrigeration circuit. Experiments were aimed at assessing the suitability of this kind of system to supply Italian residential customers. Factors such as performances, flexibility and operational requirements were evaluated under all the possible operating conditions, both under grid connected and stand alone configurations. At the same time, a mathematical model of the FC/CHP unit was developed to allow for the prediction of system performances and operating parameters under off-design conditions. This model can be used as an effective tool to optimise system operation when a particular customer has to be supplied. Results show that the prototype behaved as expected by a first "proof of concept" system and outline improvements to be achieved in order to satisfy the energy needs of small residential applications. (C) 2004 Elsevier B.V. All rights reserved.