Energy conservation is an essential step towards overcoming the problem of energy crisisrnand environmental degradation. Textile industry comprises a large number of plantsrnwhich all together consume a significant amount of energy. Improving energy efficiencyrnshould be a primary concern for textile plants. Even the available cost-effective optionsrnfor energy- efficiency often are not implemented in textile plants mostly because ofrnlimited information on how to implement energy-efficiency measures. rnYirgalem Addis Textile Factory PLC (former Adei Ababa Yarn factory) is one of thernoldest textile factories in Ethiopia, which has more than 50 years experience in spinning,rnknitting, weaving, dyeing, garments and blanket activities. The long time service givenrnby the different electrical units within the factory would entail wear-out and thereforernwould be good area for energy conservation opportunities. Thus, the main purpose of thisrnstudy is to assess the energy conservation and or efficiency and to suggest energyrnefficient technologies for yirgalem Addis textile industry as case study. The study can bernapplicable for other similar industries in the country and elsewhere.rn The major objective of the study is to provide a comprehensive overview of the presentrnenergy management strategies in the industry, and identifying energy conservationrnopportunities so as to come up with solutions to improve the efficiency of the currentrnenergy utilization of the plant. In this thesis work both primary and secondary data hasrnbeen used for energy loss review and to identify the areas for possible improvements inrnenergy utilization. The collected data has been analyzed and feasible energy conservationrnimprovement opportunities both for electrical energy as well as fuel energy which can bernapplied in this sector are identified and recommendations to minimize energyrnconsumption without affecting quality and productivity are formulated.rnThe findings reveal that a bulk of the energy in the industry is wasted due to utilization ofrnlow efficiency equipments. Based on the motor analysis it was found that by replacing 38rnvery old, rewound more than two times and standard motors with energy efficient motorsrnthe factory can save 405,028kWh, with average payback period of 2.93yrs. By improvingrnof the installation of lighting system and by replacing existing lighting fixtures withrnenergy efficient lighting technologies the factory can save 107,328.82kWh of electricrnenergy per year, resulting into total saving in electricity bill of USD 2583.94$/yr. It was found that by increasing the boiler efficiency to the acceptable range through establishingrnregular maintenance and insulation of boiler surface and insulation of steam pipes thernfactory can save 20% of its fuel cost. rnImplementation of efficient energy management programs, replacing rewound, old andrnstandard efficiency motors with energy efficient ones; use of power factor correction, usernof energy efficient lighting technologies and removing unnecessary lighting fixtures;rnestablishing adequate maintenance program, proper insulation of boiler surface and steamrnpipes, replacing of failed valves and steam traps are the major strategies recommended inrnthis thesis to achieve improved energy efficiency levels.