Described is a storage system and method for managing and optimizing power consumption in a storage system. Logical devices are mapped to physical disk drives. A plurality of power profiles is defined. Each power profile is associated with a mode of operation for a physical disk drive. One of the power profiles is assigned to each logical device. One of the physical disk drives is identified for which every logical device mapped to that physical disk drive has been assigned the same power profile. The identified physical disk drive is operated in the mode of operation associated with said same power profile. The mapping of the logical devices to the physical disk drives may be changed in order to group logical devices assigned the same power profile onto the same physical disk drive.