Novel proposals for the modeling and operation of a micro-CHP (combined-heat-andpower) residential system based on HT-PEMFC (High Temperature-Proton Exchange Membrane Fuel Cell) technology are described and analyzed to investigate the technical feasibility of such systems. The proposed systems must provide electricity, hot water, and space heating for an average single-family household in Denmark. A complete fuel processing subsystem, with all necessary BOP (balance-of-plant) components, is modeled and coupled to the fuel cell stack subsystem. The research project is divided into five main study topics: (a) Modeling, simulation and validation of the system in LabVIEW environment to provide the ability of Data Acquisition of actual components, and thereby more realistic design in the future; (b) Modeling, parametric study, and sensitivity analysis of the system in EES (Engineering Equation Solver). The parametric study is conducted to determine the most viable system/component design based on maximizing total system efficiency; (c) An improved operational strategy is formulated and applied in an attempt to minimize operational implications, experienced when using conventional operational strategies; (d) Application of a GA (Genetic Algorithm) optimization strategy. The objective function of the single-objective optimization strategy is the net electrical efficiency of the micro-CHP system. The implemented optimization procedure attempts to maximize the objective function by variation of nine decision variables; (e) The micro-CHP system is optimized by formulating and applying a process integration methodology. The methodology involves system optimization targeting in net electrical efficiency maximization. Subsequently a MINLP (Mixed Integer Non-Linear Programming) problem optimization strategy is applied to minimize the annual cost of the HEN (Heat Exchanger Network). The results obtained throughout this research work indicate the high potential of the proposed micro-CHP system, since net electrical efficiencies of up to 44% were reached, which are far and away higher than heat engine-based systems. Another interesting aspect is the simplicity of the system's fuel processing subsystem, which makes it more competitive, in terms of commercialization prospects, than other fuel cell-based micro-CHP systems.