Context. The first tentative detection of a magnetic field on the hot-Jupiter-type exoplanet τ Boötis b was recently reported by Turner et al. (A&A, 645, A59). The magnetic field was inferred from observations of circularly polarized radio emission obtained with the LOFAR telescopes. The observed radio emission is possibly a consequence of the interaction of the surrounding stellar wind with the planet's magnetic field. Aims. We aim to better understand the near space environment of τ Boötis b and to shed light on the structure and energetics of its near-field interaction with the stellar wind. We are particularly interested in understanding the magnetospheric energy fluxes powered by the star-planet interaction and in localizing the source region of possible auroral radio emission. Methods. We performed magnetohydrodynamic simulations of the space environment around τ Boötis b and its interaction with the stellar wind using the PLUTO code. We investigated the magnetospheric energy fluxes and effects of different magnetic field orientations in order to understand the physical processes that cause the energy fluxes that may lead to the observed radio emission given the magnetic field strength proposed in Turner et al. (A&A, 645, A59). Furthermore, we study the effect of various stellar wind properties, such as density and pressure, on magnetospheric energy fluxes given the uncertainty of extrasolar stellar wind predictions. Results. We find in our simulations that the interaction is most likely super-Alfvénic and that energy fluxes generated by the stellar wind-planet interaction are consistent with the observed radio powers. Magnetospheric Poynting fluxes are on the order of 1–8 × 1018 W for hypothetical open, semi-open, and closed magnetospheres. These Poynting fluxes are energetically consistent with the radio powers in Turner et al. (A&A, 645, A59) for a magnetospheric Poynting flux-to-radio efficiency >10−3 when the magnetic fields of the planet and star are aligned. In the case of lower efficiency factors, the magnetospheric radio emission scenario is, according to the parameter space modeled in this study, not powerful enough. A sub-Alfvénic interaction with decreased stellar wind density could channel Poynting fluxes on the order of 1018W toward the star. In the case of a magnetic polarity reversal of the host star from an aligned to anti-aligned field configuration, the expected radio powers in the magnetospheric emission scenario fall below the observable threshold. Furthermore, we constrain the possible structure of the auroral oval to a narrow band near the open-closed field line boundary. The strongest emission is likely to originate from the night side of the planet. More generally, we find that stellar wind variability in terms of density and pressure does significantly influence magnetospheric energy fluxes for close-in magnetized exoplanets.