A mathematical model is presented to assist in an analysis of energy policy options available. The model is based on an engineering orientated description of New Zealand's energy supply and distribution system. The system is cast as a linear program, in which energy demand is satisfied at least cost. The capacities and operating modes of process plant (such as power stations, oil refinery units, and LP-gas extraction plants) are determined by the model, as well as the optimal mix of fuels supplied to the final consumers. Policy analysis with the model enables a wide ranging assessment of the alternatives and uncertainties within a consistent quantitative framework. It is intended that the model be used as a tool to investigate the relative effects of various policy options, rather than to present a definitive plan for satisfying the nation's energy requirements.