India's Power Sector Bleeds, Loses 16.64% Energy

Despite years of investment and reform in the power sector, India continues to lose a substantial portion of the electricity it generates before it ever reaches consumers.

- ABHINANDAN MISHRA

According to data presented by the Ministry of Power in the Lok Sabha, the country recorded transmission losses of 3.55% and distribution losses of 13.09% in FY 2023-24, resulting in a combined transmission and distribution (T&D) loss of 16.64% of total electricity generation.

This makes India one of the highest loss-incurring power systems globally—both in percentage terms and absolute volume. The magnitude of these losses in financial terms is staggering.

In FY 2023-24, India generated approximately 1,744 billion units (BU) of electricity. A 16.64% T&D loss implies that around 290 BU of electricity never reached end users. To put this in perspective, Uttar Pradesh, the country's most populous state, consumed about 115 BU in 2023, while Madhya Pradesh consumed around 70 BU, and Bihar roughly 30 BU annually.