The UK economy saved nearly £250m in fuel costs last year by generating its energy more efficiently, Government figures show.
This saving is equivalent to the gas bills of more than 350,000 homes.
The Digest of UK Energy Statistics, published annually by DECC, reported an increase in combined heat and power plants, with 54 new schemes built in 2014.
However, some industrial sectors saw limited new investment and some key industrial sectors saw significant reductions in CHP capacity and generation.
ADE director Dr Tim Rotheray said: “There are hundreds more commercial and industrial sites that could benefit from generating their own heat and power locally by putting the right policy framework in place.
“A welcome tax relief implemented in 2015 is key to protecting existing industrial efficiency investments. The Government’s forthcoming Carbon Taxation review now presents a major opportunity to unlock the untapped efficiency opportunity, boost energy productivity and support UK business competitiveness.”