Mitigating climate change lies to a large part within the Energy System. In order to make it sustainable and efficient, policies have to be framed accordingly. This study focuses on formulation of policies based on future projections of the energy demand in Oskarshamn municipality of Sweden. Oskarshamn is a former industrial municipality, whose economic activity is in decline and it requires policies that accelerates its growth. It is also stereo-typical of much of Europe, as industrial activities are transferred elsewhere and regions are left to re-invent themselves. Questions such as “how to make the existing system more efficient” and “what is the best energy saving alternative”, have to be answered. For which, Long range Energy Alternatives Planning (LEAP) tool is used to create scenarios based on different pathways and to project the energy demand in the future. The business as usual scenario is compared with mitigation scenario considering various energy efficiency measures. The measures mainly focus on Demand Side Management and improving energy lifestyle interactions. Examples include the impact of electric vehicles (EV) in the transport sector and effects of better insulation in residential buildings, etc. Nuclear is currently the main source and would possibly be phased out in the horizon and thus creating a need for alternative and sustainable sources of energy. The renewable energy scenario focuses on proposals for mixing renewable fuels in the energy supply side. These are not without costs and opportunities which are discussed in the study. The outcomes work a clear delineation of Greenhouse gas mitigation options, which in collaboration with the municipality would form the basis for a policy action plan.