This study aims to investigate the role of distributed generation through the energy hub concept and refurbishment of existing buildings. More specifically, a computational platform combining (i) the urban energy modelling tool CitySimPro and (ii) the microgrid simulation tool Homer is developed. The energy flow on hourly basis is assessed for buildings in Hemberg, a small village in Switzerland, considering occupancy, lighting and appliances profiles, as defined by the Swiss normative. System design of the energy hub is optimized considering three energy system configurations: (i) present scenario, (ii) energy hub catering electrical demand, (iii) energy hub catering both electrical and thermal demand including heat pumps. Results for the integration of an energy hub on site show that the current use of renewables can be increased from 0.15% to over 60% by integrating heat pumps in the city energy network.