Energy is one of the most important requirements in any industrial activity even if its availability is the big problem. It is one of the major inputs for the economic development of a country. In this thesis report, thermal energy especially boilers and its steam distribution systems are assessed in Bahir Dar Textile share Company as case study. The objective of the research is to indicate the energy conservation opportunities in thermal energy system area. The company has no energy bill for each section and machines and inclusive energy bill analysis is done. The big problem in BTSC for thermal energy auditing is that there are no reading gauges such as flow meter, temperature and pressure gauges are installed. In this thesis work data’s are taken by direct measurements using portable thermal energy measuring instruments, interview of room operators and from the factory log sheet. Analysis is done on the two boilers by in direct efficiency analysis method. The electrode steam boiler is a new and advanced boiler and has an efficiency of about 98%. The thermal oil boiler efficiency is 67%. In steam pipeline heat loss analysis is done. From each steam line bare surface are identified and comparison of heat loss between insulated and bare surfaces are evaluated. As it is found from the analysis BTSC lost 77,112.75 birr annually due to the heat losses on the bared pipes. If the factory uses fiber glass insulation the payback period is two months.