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Electric vehicles have a limitation of limited range and long charging time. Energy optimization plays a very crucial role in determining the range of an electric vehicle. The innovative system proposed here gives the opportunity to reduce energy wastage and efficiently direct the electrical energy to improve the driving range of a 9 meter AC electric bus. The high voltage air conditioner unit alone consumes more than 40% of the electrical energy stored in the traction battery which reduces the driving range of the electric bus drastically. The proposed system optimizes the air conditioner utilization to direct cool air only in areas where passengers are present. Buses do not always run on full capacity, when there are less number of people in the bus the system detects the locations of the passengers using sensors and occupant detection algorithm, this enables the controller to identify the areas where cooling has to be focused and where cooling can be reduced or stopped.