Energy conservation contributes significantly to a reduction of the economic burden and decreased dependency on imported energy, to a reduction of energy expenses and reduces pollution.

A policy of energy conservation is a policy embodying the actions to be taken to ensure the most efficacious use of finite energy resources. Examples of such actions are energy savings, rational use of energy, substitution of one form of energy by another, such as fossil fuels by solar, wind, geothermal energy, enforcing energy conserving building standards from sun heaters to lighting in staircases, from proper insulation and water recycling can save 5% of global energy consumption.

The term policy of energy conservation is generally used at the national level. At the microeconomic level, the term energy management is generally preferred.

The cost of investing in saving one KWh of electricity is much lower to the market than generating one KWh and thus energy conservation as a long term policy is better for the national good than increasing generation capacity.

Energy conservation has five main benefits: decrease the load on the national level; cutting down on annual increase that also has a bearing on the construction of new power stations; financial saving; decreasing the level of CO2 emissions; and cheaper investment to conserve electricity compared to having to generate more electricity from fossil fuels and even more so from renewable sources.

Most of the technology needed for energy conservation already exists and has been proven to be effective. The main impediments to the implementation are governmental regulation and lack of funding especially guarantees to pay for future savings.

Herebelow are 25 energy efficiency policy recommendations by IEA (2009)
Cross Sectors:
1. Measures for increasing investment in energy efficiency
2. National energy efficiency strategies and goals
3. Compliance, monitoring, enforcement and evaluation of energy efficiency measures
4. Energy efficiency indicators
5. Monitoring and reporting progress with the IEC energy efficiency recommendations

Buildings:
1. Building codes for new buildings
2. Passive energy houses and zero energy buildings
3. Policy packages to promote energy efficiency in existing buildings
4. Building certification schemes
5. Energy efficiency improvements in glazed areas

Appliances:
1. Mandatory energy performance requirements or labels
2. Low power modes, including standby power
3. Televisions and set-top boxes
4. Energy performance test standards and measurement protocols

Lighting:
1. Best practice lighting and the phase-out of incandescent bulbs
2. Ensuring least-cost lighting in non residential buildings and the phase-out of inefficient fuel-based lighting

Transport:
1. Fuel efficient tyres
2. Mandatory fuel efficiency standards for light duty vehicles
3. Fuel economy of heavy duty vehicles
4. Eco-driving

Industry:
1. Collection of high quality energy efficiency data for industry
2. Energy performance of electric motors
3. Assistance in developing energy management capability
4. Policy packages to promote energy efficiency in small and medium sized enterprises

Utilites: Utility end-use energy efficiency schemes