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How India Wastes Electricity: Why Small Steps Can Lead to Big Savings

BusinessHow India Wastes Electricity: Why Small Steps Can Lead to Big Savings

India is at a crucial point in its energy journey. As one of the fastest-growing economies globally, the country’s electricity consumption reached around 1,390 terawatt-hours (TWh) in 2023, driven by strong industrial growth and rising household demand. However, behind these impressive figures lies a major issue: electricity wastage. Shockingly, nearly 30% of the electricity used in Indian homes is lost due to inefficiencies, outdated appliances, and inadequate infrastructure. This waste not only puts pressure on the economy but also hinders India’s ambitious sustainability objectives.
Understanding India’s Growing Energy Needs
India’s energy needs are rapidly increasing, fueled by industrial expansion, urban growth, and a burgeoning middle class. The industrial sector stands as the largest electricity consumer, yet household usage has also seen substantial growth. By the year 2031-32, the peak electricity demand in the country is expected to reach 366.4 gigawatts (GW), a rise from 277.2 GW in 2026-27, as indicated by the 20th Electric Power Survey.
Although the increase in consumption reflects advancement, there are significant concerns regarding inefficiencies at multiple levels. High transmission and distribution losses persist, and inefficiencies within households contribute notably to overall energy wastage.

The Hidden Cost of Everyday Devices

At the core of India’s electricity wastage are everyday electronic devices. Common household items like televisions, chargers, and microwaves play a significant role in what experts refer to as “phantom loads” or standby power usage. Devices that remain plugged in but are not actively in use can account for up to 10% of a household’s electricity consumption. For example, a single 10-watt charger left plugged in continuously for a year can use around 87.6 kWh of electricity. When you consider over 300 million households, the total energy loss becomes astonishing.
Outdated appliances make the situation worse. Older refrigerators, air conditioners, and lighting systems are much less energy-efficient than their modern counterparts. Additionally, faulty wiring and poor maintenance contribute to energy losses, especially in older buildings where electrical systems are often overlooked. These inefficiencies lead to higher utility bills for consumers and increased pressure on the national grid, which struggles to meet the rising energy demands.

Beyond Homes: The Bigger Picture

Electricity wastage goes beyond just individual homes. India is also grappling with substantial transmission and distribution losses, which are estimated to be around 20% of the total power generated. The ageing grid infrastructure and inefficiencies in power distribution only worsen these losses. Additionally, the environmental consequences of energy wastage are staggering. In 2023, electricity generation was responsible for roughly 1.8 billion metric tons of CO₂ emissions, making up nearly 25% of India’s overall carbon footprint. By minimizing wastage at all levels—household, industrial, and grid—India can significantly reduce these emissions and work towards achieving its climate objectives.

Economic and Environmental Costs of Wastage

Energy wastage directly affects household budgets, national resources, and environmental sustainability. For families, inefficient energy use leads to higher electricity bills. On a national scale, the energy that goes to waste could power entire cities or industries, representing a significant opportunity cost.
From an environmental perspective, this wastage obstructs India’s efforts to meet its commitments under the Paris Agreement. India aims to reach 500 GW of non-fossil fuel capacity by 2030 and cut the carbon intensity of its GDP by 30-35% compared to 2005 levels. However, achieving these targets becomes increasingly difficult when current resources are not utilized effectively

How Small Changes and Smart Energy Solutions Can Make a Big Impact-

Addressing electricity wastage doesn’t have to involve major reforms. A mix of simple practices & innovative smart solutions can lead to significant energy-saving
Unplug or automate Unused Devices: Don’t leave devices on standby. For instance, unplugging a 10-watt charger when it’s not in use can save 87.6 kWh annually. An automated energy management system can also take over this responsibility, especially in commercial settings and co-living spaces where monitoring each device can be a challenge, these solutions can save up to 20% of the cost saving.
Upgrade Appliances and Use Energy-Efficient Lighting: Opting for energy-efficient appliances, like 5-star-rated refrigerators and air conditioners, can cut consumption by as much as 40%. Swapping out incandescent bulbs for LED lights can also lower electricity use for lighting by up to 75%. However replacing devices is always not feasible, Smart systems can manage the electricity usage of existing devices, monitor faulty appliances, and lower energy consumption, even for older appliances.
Educate Consumers: Awareness campaigns can inform households about easy conservation practices. Programs like “Switch Off to Save” have shown success in promoting responsible energy use. Emphasizing Energy smartness on an individual level can make a big impact.
Leveraging Technology for Efficiency: Technology can significantly reduce energy wastage. The Internet of Things (IoT) and Artificial Intelligence (AI) offer smart home solutions that track and optimize electricity usage in real time. Advanced energy management systems can identify inefficiencies and recommend corrective measures.
Conclusion: Collective Responsibility for a Sustainable Future
India’s electricity consumption showcases its ambitions for growth and development. However, this advancement should not come at the expense of inefficiency and environmental harm. By tackling energy waste at the household level and beyond, India can reap substantial economic and environmental rewards.

Every small action counts.

Unplugging devices that are not in use, upgrading to energy-efficient appliances, and adopting smart technologies can collectively result in significant energy savings. For a nation aiming to power its future sustainably, reducing waste today is not merely a choice—it’s a necessity.
As India progresses toward its sustainability objectives, the responsibility falls on both individuals and policymakers to ensure that every kilowatt-hour produced is utilized effectively. Ultimately, conserving electricity is not just about saving energy; it’s about ensuring a brighter future for the generations that follow.

Bharath Rankawat is Founder & CEO Enlog

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