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The energy generation landscape is changing, pushed by stricter regulations for emissions control and green energy generation. The limitations of renewable energy sources, however, require flexible energy production sources to supplement them. Micro gas turbine based combined heat and power plants, which are used for domestic applications, can fill this gap if they become more reliable. This can be achieved with the use of an engine monitoring and diagnostics system: real-time engine condition monitoring and fault diagnostics results in reduced operating and maintenance costs and increased component and engine life. In order to allow the step change in the connection of small engines to the grid, a fleet monitoring system for micro gas turbines is required. A proposed framework combines a physics-based model and a data-driven model with machine learning capabilities for predicting system behavior, and includes a purpose-developed diagnostic tool for anomaly detection and classification for a multitude of engines. The framework has been implemented on a fleet of micro gas turbines and some of the lessons learned from the demonstration of the concept as well as key takeaways from the general literature are presented in this paper. The extension of fleet monitoring to optimal operation and production planning in relation to the needs of the grid will allow the micro gas turbines to fit in the future green energy system, connect to the grid, and trade in the energy market. The requirements on the system level for the widespread use of micro gas turbines in the energy system are addressed in the paper. A review of the current solutions …