In the developing world, the energy needs of the household sector have grown manifold, due to rapid urbanization and the introduction of affordable technology. However, constraints in the power supply and underutilization of renewable resources, coupled with inefficient fuel use and obsolete technology, have increased the average energy usage cost and emissions. Hence, the current study provides a long-term sustainable energy management plan for the urban household, in terms of energy savings, social cost, and greenhouse gas (GHG) mitigation. To address energy security and climate change challenges, a demand-side management scenario (DSM) is proposed through integration of efficient policies and nationally determined contributions. On the basis of policy analysis and energy consumption patterns, macro-economic modeling was carried out for the period 2011⁻2050, using the Long-range Energy Alternative Planning (LEAP) modeling tool. Results show that the “efficient water heating„ scenario offers the maximum energy-saving potential (up to 270 M.TOE) whereas “efficient space cooling„ is the lowest-cost scenario. To achieve the best-fit mitigation scenario (MIT), targets for renewable energy supply were also incorporated. Findings were weighed against the reference scenario (REF), which reveals a huge GHG reduction under the DSM. Moreover, the cost required to implement MIT is estimated to be 3.4 US $/tonne of carbon dioxide-equivalent, less than the REF.