Energy recovery is the process of converting kinetic energy (energy created through movement) back into usable electricity, which is either stored in the battery, or immediately used again by electrical components on the vehicle. Depending on driving style, electrical energy is supplied to the vehicle by the alternator or directly by the battery. The principle of energy recovery is to reduce the load on the engine and therefore contribute to lower emissions and reduced fuel consumption.
Article source: www.skoda.co.uk