Energy model, a systematic data-intensive multi-objective framework replicating the energy sector of the country or globe, constitutes of energy resource supply, energy consumption sector-by-sector, energy transformation technologies, greenhouse gas emission and energy pricing. Considering the atypical weather pattern yearly and geographical diversity, the challenges and benefits of designing an energy model have been summarized. The paper has documented the tremendous jeopardy of drastic climate change, energy crisis on the global economy, requirement for transition to low carbon economy and rural electrification which have been impetus for the evolution of legitimate energy model. Special emphasis has been provided on the types of energy models that have been developed and practiced throughout the world followed by a comparative analysis of a few. The requirement to configure a unique energy model in India followed by certain recommendations has been proposed in this paper.