Energy saving potentials related to steam generation and its usage in the medium size bakery are analyzed and presented. Input data needed for the investigation are gathered through detailed energy audit. Four energy savings measures are analysed in detail: 1) change of heat generator for space heating and domestic hot water preparation from steam boiler to condensing boiler, 2) reduction of heat losses from steam and condensate distribution lines, 3) heat utilization of return condensate and 4) replacement of the old, low efficiency steam boiler with high-efficient one. Implementation of these measures will result in substantial reduction of energy costs, ranging from 2.900 to 26.200 € annually. Interaction of all measures is analysed through energy efficiency improvement scenario, whose implementation will ensure significant energy cost savings, estimated at 40.793 € annually, with simple payback period shorter than 4 years. Implementation of presented measures will improve facility’s energy efficiency, represented through reduction of annual energy performance indicators by 6,14 %. Presented analysis revealed that steam generation and its usage in the industrial facilities offer a substantial potential for reduction of energy use and energy related cost.