Due to unprecedented price rise of energy, acute shortages and uncertainties in securing new and reliable energy sources, continuous technological developments have been taking place in equipment and system design in the field of pulp and paper industry. The possibility of energy reduction in areas of pulping, bleaching and cleaning of pulp, black liquor evaporation, approach flow system and drying of paper are analyzed. Specific energy consumption in terms of both heat and electricity can be considerably reduced by adopting continuous pulping methods, incorporating new concepts of counter-current impregnation, cooking high heat diffusion washing and displacement bleaching. Use of cleaners based on improved design can reduce electric energy use considerably by cleaning pulp at higher consistency and at reduced reject rates without impairing cleaning efficiency. Pre-evaporation of spent liquor in vapor recompression evaporators and use of falling film evaporation for scale forming black liquors can reduce steam demand in evaporation. Specific steam demand in paper drying can be reduced by 6 to 10% using thermo-rings or by modifications of dryer inner surface. Effects of energy consumption by integration of pulp and paper mills and by implementation of effluent treatment program are indicated.