The main purpose of the present study is to develop a simple yet proper top-down model for forecasting the energy demand of the residential and commercial sectors in Iran. This model can be used as a tool of scenario analysis to predict the emerging energy demand in future. The proposed model would be systematically developed and selected based on various quantified exogenous variables. For this purpose, a certain model out of a collection of 41,472 parallel models with different inputs and dynamics is chosen as the most appropriate model. According to the logical conjunctive relationships between the variables, the structure of all competing models is established to log-linear. Different possible combinations of various measures for the exogenous variables generate parallel models. Then, an automated fuzzy decision-making (FDM) process determines the best model. Finally, defining several scenarios, the energy demand of the residential and commercial sectors in Iran for the period of 2013 to 2021 is forecasted. The results showed that despite of desubsidization, which is included by a dummy variable, the energy demand will grow by an average rate of about 3 % annually. Keywords Energy demand forecasting . Model selection . Fuzzy decision making . Residential and commercial sectors Abbreviations AAEP Average absolute error percentage BIRR Bilion Iranian Rials BLD Book value of active buildings [10 4 BIRR] BU Bottom-up D Differencing operator DC Dynamicity criterion or the property index for the dynamics of a model DUM Dummy variable ER Energy consumption by the residential and commercial sectors [MTOE] FIT Fitness of simulation FPE Akaike's final prediction error GT The global Student t statistics HNT Household number [million persons] HVAC Heating, ventilation, and air conditioning INVC Gross fixed capital formation (investment) for the constructions [10 4 BIRR] JB Jarque-Bera tests of normality KBLD Cumulative sum of BLD [10 4 BIRR] KCD The same variable (KCT) calculated considering a 5 % annual depreciation rate KCT Total capital invested for buildings (constructions) [10 4 BIRR] Energy Efficiency