Micro Gas Turbines (mGTs) have arisen as a promising technology for Combined Heat and Power (CHP) thanks to their overall energy efficiencies of 80% (30% electrical + 50% thermal) and the advantages they offer with respect to internal combustion engines. The main limitation of mGTs lies in their rather low electrical efficiency: whenever there is no heat demand, the exhaust gases are directly blown off and the efficiency of the unit is reduced to 30%. Operation in such conditions is generally not economical and can eventually lead to shutdown of the machine. To address this issue, the mGT cycle can be modified so that in moments of low heat demand the heat in the exhaust gases is used to warm up water which is then re-injected in the cycle, thereby increasing the electrical efficiency. The introduction of a saturation tower allows for water injection in mGTs: the resulting cycle is known as a micro Humid Air Turbine (mHAT). The static performance of the mGT Turbec T100 working as an mHAT has been characterised through previous numerical and experimental work at Vrije Universiteit Brussel (VUB). However, the dynamic behaviour of such a complex system is key to protect the components during transient operation. Thus, we have modelled the Turbec T100 mHAT with the TRANSEO tool in order to simulate how the cycle performs when the demanded power output fluctuates. Steady-state results showed that when operating with water injection, the electrical efficiency of the unit is incremented by 3.4% absolute. The transient analysis revealed that power increase ramps higher than 4.2 kW/s or power decrease ramps lower than 3.5 kW/s (absolute value) lead to oscillations which enter the unstable operation region of the compressor. Since power ramps in the controller of the Turbec T100 mGT are limited to 2kW/s, it should be safe to vary the power output of the T100 mHAT when operating with water injection.