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Urban areas are the key drivers of energy usage and the associated carbon emissions. Due to the rapid economic development and urbanization process, China has faced increasing pressure on energy supply and carbon emission issues. It is urgent for China to change from the current coal-based high carbon intensity power supply structure. In this context, China has planned to utilize an undeveloped area in Shenzhen to become a low-carbon development demonstration project. The purpose of this paper is to propose the best combination of technology for electricity generation, involving a mix of renewable energy resources, to satisfy electrical needs and, at the same time, minimize carbon emissions from power generation in the low carbon demonstration area. The optimal renewable energy system configuration was determined based on the Hybrid Optimization Model for Electric Renewable model. The simulation results show that costs of energy for the three scenarios considered are $0.187/kW h, $0.128/kW h, and $0.150/kW h, respectively; annual carbon emissions for the three scenarios are 96 702 tons, 89 836 tons, and 78 065 tons, respectively. Given the economic advantage, scenario 2 is a suitable choice for the first phase of the international low carbon city (ILCC). With reinforced carbon emissions controls and a rising carbon allowance price, scenario 3 can be adopted in the second and third phase of the ILCC construction. [ABSTRACT FROM AUTHOR]