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Strategic planning and decision making, nonetheless making energy policies  and strategies, is very extensive process and has to follow multiple and  often contradictory objectives. During the preparation of the new Slovenian  Energy Programme proposal, complete update of the technology and sector  oriented bottom up model of Reference Energy and Environmental System of  Slovenia (REES-SLO) has been done. During the redevelopment of the REES-SLO  model trade-off between the simulation and optimisation approach has been  done, favouring presentation of relations between controls and their effects  rather than the elusive optimality of results which can be misleading for  small energy systems. Scenario-based planning was integrated into the MESAP  (Modular Energy System Analysis and Planning) environment, allowing  integration of past, present and planned (calculated) data in a comprehensive  overall system. Within the paper, the main technical, economic and  environmental characteristics of the Slovenian energy system model REES-SLO  are described. This paper presents a new approach in modelling relatively  small energy systems which goes beyond investment in particular technologies  or categories of technology and allows smooth transition to low carbon  economy. Presented research work confirms that transition from environment  unfriendly fossil fuelled economy to sustainable and climate friendly  development requires a new approach, which must be based on excellent  knowledge of alternative possibilities of development and especially  awareness about new opportunities in exploitation of energy efficiency and  renewable energy sources

Role of the national energy system modelling in the process of the policy development