The expected growth of living standard, number of inhabitants and development of technology, industry and agriculture will cause a significant increase of energy consumption in cities. Three scenarios of energy sector development until 2030 and corresponding energy consumption for the city of Belgrade are analyzed in this paper. These scenarios consider different level of economic development, investments in energy sector, substitution of fossil fuels, introduction of renewable energy sources and implementation of energy efficiency measures. The proposed model for selection of optimal district heating system compares different options for fulfilling expected new heat demand through eight criteria for each scenario. Proposed options are combination of different energy sources and technologies for their use. The criteria weights are set according to Serbian economy and energy position. The criteria include financial aspects, environmental impact and availability of energy. Multi-criteria method ELECTRE (ELimination Et Choix Traduisant la REalite) is used as a tool for obtaining the optimal option. It is concluded that combination of CHP (combined heat and power) plant and centralized use of geothermal energy is optimal choice in the optimistic scenario. In the pessimistic and business as usual scenario the optimal option is combination of new gas boilers and centralized use of geothermal energy. (C) 2014 Elsevier Ltd. All rights reserved.