Energy from waste technology burns food and other waste products in a combustion plant or produces biofuels from composting or chemical processes. It is very popular in other countries in Europe, but there are only about 50 plants in the UK at the moment.
However, the Institution of Mechanical Engineers believe the technology could provide a fifth of the nation's electricity.
A report from the institution said it was absolutely crucial for waste to be used for energy if Britain was to meet its target of getting 15 per cent of all energy from renewable sources by 2020.
The call came as a leading supermarket announced plans to recycle all food waste into energy by the end of this summer.
Sainsbury's will turn approximately 17,000 tonnes of waste each year into biofuel and renewable energy that will generate 8,500 mega watt hours of electricity -- enough to power a small village of 12,000 houses for a year.
Philip Simpson, director of waste disposal company PDM, said most supermarkets will be following suit by the end of the year.
"Food waste has traditionally been viewed as difficult to recycle; however, this is not the case. By using a combination of innovative technologies, along with proven systems such as biomass combustion and anaerobic digestion, we are able to not only to divert food waste from landfill but also use it to create energy -- a valuable contribution to the UK's energy strategy," he said.