"Distributed local energy systems" had been expected to rationalize the supply of energy to built-up areas, but until now very little research has been performed to estimate the effect of their application to actual cities. In this research, therefore, a future vision for the year 2030 in the Sancha Area (SANCHA VISION 2030), a typical densely built-up area in Tokyo, has been elaborated including a simulation to estimate benefits from the application of distributed energy systems in terms of reduced energy consumption and CO, emissions as well as mitigation of the heat-island phenomenon. As a result, it was demonstrated that a "distributed local energy system", which provides a district with both electrical power and heat through an integrated distribution system, may contribute to a considerable improvement in energy efficiency for those areas. In addition, it may also provide other benefits, including enhancement of living amenity and urban security in times of emergency. (C) 2007 Elsevier B.V. All rights reserved.