Increasing the use of variable renewable electricity (VRE) such as solar and wind power will impose major challenges to existing energy systems. The increased variability needs to be considered, but also how to optimally operate the remaining power system. In this paper, we present a fast and easy-to-use optimization model to find cost-optimal ways to manage the energy system with large-scale VRE. This is done by minimizing the running costs and maximizing revenues of the energy production. The model accounts for the energy system dynamics. It can handle both electric and thermal loads at different scales (building, city) and allows incorporating different flexibility strategies. The model is applied to analyzing a very large wind power scheme for Helsinki city (Finland), coupled to the existing CHP-dominated district heating schemes through power-to-heat conversion for more optimal system integration leading to major CO2 emission reductions. The model is well suited to studying integration of renewable energy, to design better policies for introducing VRE and to find solutions to increase energy system flexibility, among others. (C) 2016 Elsevier Ltd. All rights reserved.