The technical, economical and environmental performances of combined cooling, heating and power (CCHP) system are closely dependent on its design and operation strategy. This paper analyzes the energy flow of CCHP system and deduces the primary energy consumption following the thermal demand of building. Three criteria, primary energy saving (PES). annual total cost saving (ATCS), and carbon dioxide emission reduction (CDER) are selected to evaluate the performance of CCHP system. Based on the energy flow of CCHP system, the capacity and operation of CHP system are optimized by genetic algorithm (GA) so as to maximize the technical, economical and environmental benefits achieved by CCHP system in comparison to separation production system. A numerical example of gas CCHP system for a hotel building in Beijing is given to ascertain the effectiveness of the optimal method. Furthermore, a sensitivity analysis is presented in order to show how the optimal operation strategy would vary due to the changes of electricity price and gas price. (C) 2009 Elsevier Ltd. All rights reserved.