This paper employs an integrated model for analysis of energy demand and MARKet ALlocation modelling framework for assessing different pathways for the development of energy systems of Nepal. Four energy scenarios are analysed with the time horizon from 2010 to 2030. With high electrification and energy efficiency and demand-side management, the analysis reveals that all three major goals of sustainable energy for all can be achieved by 2030, but that the total discounted systems costs required account for three times the costs of the reference scenario. In the policy scenario, net fuel import costs and greenhouse gas emissions will decline by 20% and 35%, respectively and the share of renewable energy will increase from 3% in 2010 to 22% in 2030. The analysis provides insights for selecting a better pathway for the sustainable energy development and energy security of the country.