This paper deals with the energy audit and heat recovery system udmodeling and designud,udtaking uda cement factory in Ethiopiaudas a case study. The system is a dry type rotary kiln udequipped with uda udsixth stage cyclone type udpreheaterud, preud-udcalciner and grate cooler. The kiln udhas a capacity of 3ud,ud000 tons/day. The energy auditing has been performed based on the uddata collected from control volume of the kiln system for uda udtenud-udmonth udperiodud. The result udshows that 25.23% of the total heat input is released to the environment through the udpreheaterudand anudother 15.58% through the cooler exhausts. The west heat recovery system ud(WHRS) can produce a gross power of 5.26 MW as long as the kiln is udiudn udoperationud. The udgenerated power can cover all the electrical udenergy udconsumption of the kiln system udwhether there isuda power supply from the grid or not. Therefore, the company can save udup udto ud536,222.10 USD per year due to the production of clinker using udtheir udown power source udand avoiding the loss udsustainedudby the company due to power interruption from the grid
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