Abstract: The conventional DEA model for measuring TFEE adopts the assumption of strong disposability, which can't identify the congestion effect when the production activity occurs in non-economic areas, and energy inefficiency caused by congestion has seldom been discussed. This paper expanded the concept of energy congestion by taking undesirable outputs into TFEE framework. The modified FGL model was adopted to measure the magnitude of energy congestion of Chinese industrial sectors from 2000 to 2015, and then the part driven by energy congestion was separated from overall energy inefficiency. It was found that energy congestion effect did exist in Chinese industrial sectors but varied from province to province; energy congestion could be a main driving force for energy inefficiency; the policies of energy conservation and pollution reduction played a great role in eliminating energy congestion. The conclusion points out that:in accordance with the sources of energy inefficiency, measures of energy conservation and pollution reduction should be taken according to local conditions in order to improve energy efficiency and realize the dual goal of energy saving and emission reduction, and economic development.