Existing power-aware routing algorithms are fixed and unaware of channel fading dynamics. They are suitable for interconnection of base station subsystem in large cellular networks, where the impact of fading is negligible. However, the height of base station towers could be reduced as the cell size shrinks. In such scenarios, and, in particular, in urban areas, the impact of fading cannot be ignored due to possibility of multipath reflections. Thus, when deployed in real world scenarios, these algorithms suffer from severe performance degradation in terms of power consumption. In this paper, we propose a routing algorithm that takes into account the real channel conditions such as multipath fading. The algorithm is optimised based on location knowledge of nodes and dynamic variation of the channel localised to each node. The results show a power saving gain of around 35% over the baseline scheme [1].