Its findings are based on a survey of 1,300 people in the industry.
Respondents called for a whole system approach that addresses the needs of businesses as well as the wider public, while reducing emissions and ensuring security and resilience.
Around 60% of engineers identified improving energy efficiency without undermining business competitiveness as the single most important area for the government to focus on.
The report says introducing an energy saving incentive scheme to pay out for demonstrated energy savings could significantly reduce UK energy demand per person by 2050.
Louise Kingham, Chief Executive of the Energy Institute, said: “The message from the engineering community is clear. If the government’s Industrial Strategy is to make the most of the opportunities it should have greater energy efficiency and a system wide approach at its heart.
“And the policies adopted must be credible over the long term, to provide industry with the confidence needed to sustain investment and jobs in energy technologies and infrastructure.”
The report also highlights the need for the increased support of tidal power, offshore wind, carbon capture and storage technology and a small modular nuclear reactor industry in the UK.