Scarcity or abundance of energy resources usually depends on physical and geographical conditions in the region. However, the energy flow in the region also depends on the efficient use of energy resources, the consumption rate of energy and the possibility to use local renewable and non-renewable energy resources. Production, distribution and the use of energy resources in the region are the challenges for central and local government, business and social service, customers and other stakeholders. Development of regional energy economy should be optimized according to the available energy flow in the region using a network system analysis method, which provides solutions for developing sustainable energy economy models. The network system analysis method enables to optimize the use of local and renewable resources at the regional level and reveals available local energy resources. An efficient use of available regional resources and the use of renewable energy sources (RES) should be the main goals for the development of regional energy system. RES can compete with traditional fossil fuel with the condition that all hidden aspects are revealed. The network system analysis method enables to indicate energy flows in the region as well as indicate pros and cons of using renewable energy technologies. (C) 2013 Elsevier Ltd. All rights reserved.