In this paper, we present an improved self-configuration algorithm for LTE femtocells. In the absence of active users, femtocell resides in an energy saving state. As traffic demand becomes considerable, each Femto Base Station dynamically adapts its pilot power (and thus the coverage) to the on-site traffic demand. Our approach improves the overall system capacity and controls co-channel interference while enhancing Energy Efficiency of the overall cellular network. The proposed power control scheme is fully distributed and provides highly scalable, flexible and robust control without signaling overhead, that makes it suitable for a large-scale femtocell deployment.