Cloud computing is an emerging computing technology that uses the Internet and central remote services to maintain data and application which are provisioned on-demand and on pay-as-you-go basis. Wide adaptation of Cloud concepts has increased number of data centers worldwide resulting into significant amounts of power consumption by datacenters which affects environment and economical aspects. Through virtualization, multiple virtual machines (VM) can be deployed onto one physical machine (PM). These VMs hold and execute the Cloud workload. Efficient allocation of VMs on PM may lead to better resource utilization and result into saving in energy. In this research, we aim to provide enhanced energy efficient VM placement policy for load balancing in Cloud environment which places the VMs in such as way that hosts__ampersandsignrsquo; overload and underload situation is addressed and maintain Service Level Agreement (SLA) between the Cloud provider and the user. In addition, we propose power aware algorithm to reduce energy consumption and achieve better load balancing.