The present study developed a computer simulation program to determine the optimum strategy and capacity of a micro combined heat and power(CHP) system. This simulation program considered a part-load electrical/thermal efficiency and transient response characteristics of CHP unit. The result obtained from the simulation was compared with the actual operation of 30 kW gas engine driven micro CHP system. It was found that the simulation could reproduce the daily operation behavior, such as operating hours and mean load factor, closely to the actual behavior of the system and could predict the amount of electrical/thermal output and fuel consumption with the error of less than 12%.