The energy consumption in telecommunication networks is expected to grow considerably, especially in core networks. In this chapter, optimization of energy consumption is approached from two directions. In a first study, multilayer traffic engineering is used to assign energy-efficient paths and logical topology to IP traffic. The relation with traditional capacity optimization is explained, and the multilayer traffic engineering strategy is applied for daily traffic variations. A second study considers the core network below the IP layer, giving a detailed power consumption model. Optical bypass is evaluated as a technique to achieve considerable power savings over per-hop optical-electronic-optical 3R regeneration