Nowadays energy is one of the major areas which need greater attention throughout thernworld. The textile industry is one of the major energy consuming industries and retains arnrecord of the lowest efficiency in energy utilization. Energy in the textile industry is mostlyrnused in the form of electricity as a common power source for machinery, heating andrnventilating air conditioner, lighting system and other equipment etc. In Alameda textilernfactory about 20.35% energy is consumed in weaving, 42.4% in spinning, 22.39 % inrnprocessing, 7.22% new garment and 7.64% in lighting and others. This is a total ofrn44.31MWh per year. From the information it is difficult to consider the energy loss. Had itrnbeen administered an energy audit, the amount of energy mismanaged and lost would berneasily estimated. An energy audit is an inspection, survey and analysis of energy flows ofrnenergy conservation in a factory, process system to reduce the amount of energy input intornthe system without negatively affecting the output. rnThe main objective of this thesis is to identify the energy wastage areas and to asses powerrnquality related problem (harmonics) to take possible measures for improving the energyrnperformance of the manufacturing process of the selected plant. Motor Masterrn+International Software was used to evaluate the performance of the existing motors withrnthe energy efficient motors and Digital Simulation of Electrical Network softwarern(DIgSILENT) was used to assess harmonics. It was found that the specific energyrnconsumption difference between the Almeda Textile and the benchmark is 9.07kWh/Kg.rnAs a result, the company spends an extra 286,703.7$ annually as compared to thernbenchmark. From the assessment, since the PF for the four transformers in the garmentrndepartments was found to be 0.969, most of the energy loss was found in the weaving andrnspinning departments. After designing multi single tuned passive filters for the tworntransformers T1 and T2 of the two departments, the THDI for T1 and T2 was reduced torn0.867% and 0.824% from 25.5% and 21.4% respectively. And the THDV for T1 and T2rnwas reduced to 2.91% from 8.8% for both. In addition, the THDI of substation transformerrnwas reduced to 0.3% from 21.6%.