This paper presents a dynamic simulation model to predict the performance of an ASHPWH (air source heat pump water heater). The developed model is used to assess its performance in the Lebanese context. It is shown that for the four Lebanese climatic zones, the expected monthly values of the average COP (coefficient of performance) varies from 2.9 to 5, leading to high efficiencies compared with conventional electric water heaters. The energy savings and GHG (greenhouse gas) emissions reduction are investigated for each zone. Furthermore, it is recommended to use the ASHPWH during the period of highest daily ambient temperatures (noon or afternoon), assuming that the electricity tariff and hot water loads are constant. In addition, an optimal management model for the ASHPWH is developed and applied for a typical winter day of Beirut. Moreover, the developed dynamic model of ASHPWH is used to compare the performance of three similar systems that differ only with the condenser geometry, where results show that using mini-condenser geometries increase the COP (coefficient of performance) and consequently, more energy is saved as well as more GHG emissions are reduced. In addition, the condenser "surface compactness" is increased giving rise to an efficient compact heat exchanger. (C) 2013 Elsevier Ltd. All rights reserved.