The technology of power electronics has gone through rapid technological advancement during the last four decades, and recently, its applications are fast expanding in industrial, commercial, residential, military and utility environments. In the global industrial automation, energy conservation and environmental pollution control trends of the 21st century, the widespread impact of power electronics is inevitable. The paper begins with a discussion on global energy generation scenario and the corresponding environmental pollution problem. The mitigation of this problem is then discussed with particular emphasis on energy saving with the help of power electronics. A brief but comprehensive review of the recent advances of power electronics that includes power semiconductor devices, converters, machines, drives and control is incorporated in the paper. Finally, a prognosis for the 21st century has been outlined.