If server is Windows 2008 (R1) the following steps need to be taken:

1:  Copy the “Policy Definitions” folder on a Windows 7 PC from the C:\Windows directory to \\Domain.local\SYSVOL\Policies Folder.

2:  On a Windows 7 PC download and install RSAT (Remote Server Administration Tools) for Windows 7.

From a Windows 2008 R2 server or the Windows 7 PC with RSAT installed:

1: Create a New GPO.

2: Navigate to “Computer Configuration\Preferences\Control Panel Settings\Power Options”

3: Right Click and Create new “Power Plan (Windows Vista and later)”

4: Change the Action to “New” and name the Policy.

5: Configure the power settings.

6:  Make sure the Group Policy is applied to the correct OU.  Close the Group Policy Manger.

7:  From a Windows 7 PC.  Update Group Policy with the “gpupdate /force” command.

8:  Find the power scheme you just created by using the “powercfg /list” command. 

9:  Copy the GUID of the power scheme.

10:  Open the Group Policy Management Console again and edit GPO you created for the Windows 7 Power Settings.

11:  Navigate to: Computer Configuration\Policies\Administrative Templates\System\Power Management\Specify a Custom Active Power Plan

12:  Enable the Policy and Paste your GUID into the Options.

13: After Group Policy updates the PC’s Power Settings should look like this: