Equipment and system that are operated from either purchased electricity (NEA) or generated electricity (captive generators) comes under electric utilities. The former is clean source of energy, usually from hydropower. But, the later depends on imported fossil fuel. Energy efficiency in electrical utility comprises electric system, electric motors, compressed air system, HVAC & refrigeration system, fans & blowers, pumps and pumping system, cooling tower, lighting system, power generating system etc. Considering the eight energy intensive industrial sectors, Nepalese Industries have potential of saving up to 55.8 percent on electrical system depending on the sector and size of the industry (NEEP 2012)

Energy efficiency in thermal utilities deals with fuels & combustion, boilers, steam system, furnaces, insulation & refractories, cogeneration, waste heat recovery, heat exchangers etc. The sources of the energy are biomass based and imported fossil fuel based. Considering the eight energy intensive industrial sectors, Nepalese industries have potential of up to 41.7 percent on thermal system depending on the sector and the size of the industry (NEEP 2012).