This paper presents a scheme to achieve structural and operational optimization for the heat plant in a district energy system. A district energy system consists of energy suppliers and consumers, district heating pipelines and heat storage facilities in a region. Production and consumption of energy and transport of energy as well as storage of heat are taken into account in the model. The problem is formulated as a mixed integer linear programming (MILP) problem where the objective is to minimize the overall cost of the district energy system. Evaluation of the energy production cost is based on the daily operation for every season at the plant located at Suseo in Seoul, Korea. From the results of numerical simulations we can see that the district energy system is well approximated by the proposed model, and that the energy efficiency is improved by the application of the optimal operation conditions provided by the proposed model.