Orthogonal Frequency Division Multiplexing (OFDM) is a fast growing technology which is frequently used in all high data rate applications. The standards like Long Term Evaluation (LTE) promise to offer a good data rate at high mobility. But the high mobility destroys the orthogonality of OFDM systems and also reduces the transmission energy efficiency. The transmit power is a very important resource in the OFDM based communication systems which determines the reliability, data rate and energy consumption of the system. Energy minimization is a very critical component in wireless OFDM applications. Minimization of energy and Inter Carrier Interference (ICI) is mainly concentrated in this work. In this paper we propose a new algorithm, Modified Dynamic Subcarrier Bandwidth (MDSB), which is a combination of Simple Bit Loading (SBL) algorithm with Dynamic Subcarrier Bandwidth (DSB) to minimize energy consumption and ICI. The results show that MDSB algorithm optimally minimizes ICI and Energy when compared to the other algorithms. © 2005 - 2012 JATIT & LLS.