The pressure to reduce investment and operating costs is a constant factor for the application of new and challenging technologies, the present crisis of Sugar industry has further necessitated the adoption of policies for reduction in production cost. Efficient utilization of energy can contribute in substantial reduction of production cost. This article describes the procedures that can be adopted fn this regard right from cane yard up to bagging of sugar .Impact of good guilty cane, improvement in calorific value of bagasse, energy conservation in boiling house, efficient utilization of electricity and steam are briefly discussed.