In this paper, we develop and investigate the optimal control of a group of 104 heat pumps and a central Combined Heat and Power unit (CHP). The heat pumps supply space heating and domestic hot water to households. Each house has a buffer for domestic hot water and a floor heating system for space heating. Electricity for the heat pumps is generated by a central CHP unit, which also provides thermal energy to a district heating system. The paper reviews recent smart grid control approaches for central and distributed levels. An online algorithm is described based on the earliest deadline first theory that can be used on the aggregator level to control the CHP and to give signals to the heat pump controllers if they should start or should wait. The central controller requires only a limited amount of privacy-insensitive information from the heat pump controllers about their deadlines, which the heat pump controllers calculate for themselves by model predictions. In this way, a robust heat pump and CHP control is obtained, which is able to minimize energy demand and results in the desired thermal comfort for the households. The simulations demonstrate fast computation times due to minor computational and communication overheads.