ABSTRACT The purpose of the project is to assess the major power consumption by auxiliaries and suggesting cost saving alternatives in terms of energy saving. Energy audit of Plant have been conducted for main auxiliaries of thermal power plant like Boiler, Turbine, Condenser vacuum system, performance evaluation of Air pre-heater, MAKE UP water consumption. Various parameters from Control room and Chemical wings has been taken and it was found that the efficiency of boiler is 85.29% which we can improve up to >89% by reducing dry flue gas losses. There is a lot of wastage of MAKE UP water in the plant; we can save this MAKE UP water by making small investment in terms of replacement of valves, gland, seat etc. Heat rate of turbine was calculated, and it was found that it is more than the design heat rate due to low vacuum and process parameters. Vacuum of condenser can be improved by Condenser online Load Tube Cleaning System. We can improve the vacuum and obtain the saving of more than Rs. 200 Lakhs. There is a huge amount of water passing in Boiler Feed Pump recirculation line, after carrying out the various calculated on Boiler Feed Pump, it is observed that the anticipated saving of approximately Rs. 27 Lakhs per year with an investment of Rs.5.0 Lakhs by replacement of valves. Therefore by adopting some precautions and recommendations we can reduce the power consumption. The total anticipated saving will be more than >3500 Lakhs. per annum with an investment of approx. Rs.2300 lakhs and payback period is 7.5 months.The study conducted clearly shows that the preventive maintenance, overhauling and re-assessment of operating conditions of aging plant imparts a major role in keeping a power plant an energy efficient utility.