Energy conservation and efficient usage are vital to the country’s development. Energy demand is increasing globally due to the depletion of fossil fuel sources and other related issues. Significant results can be achieved by focusing on energy utilization assessment and consumption reduction efforts through improvement, better production management, and the introduction of new technologies; saving money on energy bills, improving energy e fficiency, and maintaining a sustainable environment. The aim of this thesis is to assess the energy sources and utilization in the selected factory. And also, it is to study and identify energy utilization efficiencies of the different utilities in the factory. It has been found from energy audit results that there exists an average electricity energy intensity difference of 8.83kWh/Kg between the benchmarks and what exists at Addis Gas and Plastic Factory; the factory spends 7,536,165.28 birr per year on this account. Some under loaded motors have been replaced with proper-sized motors and energy-efficient motors. This brings energy savings of 9,757 kWh per year and money savings of 41,118.61 birr per year, with some payback years ranging from 1.96 to 6.28 years. Also, through improvements, the lighting systems resulted in money saving of 29,027.62 birr annually. In this thesis work, energy assessment, capacitor bank placement, and sizing for power factor correction at the selected factory have been assessed. Before the power factor correction, the power factor of AGP was 0.79, which is under penalty based on EEU bill tariff. The power factor of AGP is corrected to 0.9 and, based on power factor correction; the capacitor bank is designed for 176.8 F to the factory. Based on the losses, energy efficiency performance assessments on the major energy-intensive equipment like electric motors and drives, lighting, and the kiln have been done. Last, energy efficiency improvement opportunities for both electrical energy and fuel energy are recommended. Key Words: Energy utilization assessment, Energy efficiency, Energy intensity, Energy losses, Power factor correction, Capacitor bank.