The goal of this study is the development of the assessment model for demand-side management investment programs (DSMIPs) in the areas of natural gas and district heating. Demand-side management (DSM) is the process of managing the consumption of energy to optimize available and planned generation resources and DSMIPs are the actions conducted by energy suppliers to promote investment in the DSM. In this research, the analytic hierarchy process (AHP) method was used to develop a scientific and rational assessment model for DSMIPs. To apply the AHP method, assessment indicators for the assessment have been identified by using the concept of plan, 'do, see' and the decision-making hierarchy was established. Then AHP model was developed to set up the priorities of assessment indicators and a survey of experts from government and energy suppliers was carried out. Finally, the priorities of assessment indicators were calculated based on the result of survey using the AHP method. The assessment model developed from this research will actually be used to assess the results of DSMIPs, which is being carried out by Korea gas corporation (KOGAS) and Korea district heating corporation (KDHC). The use of the assessment model developed by this research is expected to contribute to enhance efficiency in planning, execution, and assessment of DSMIPs. (C) 2007 Elsevier Ltd. All rights reserved.