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Confronting Ghost Electricity & Power Leakage in India

Confronting Ghost Electricity & Power Leakage in India

Electricity is fundamental to powering our modern lives, yet a significant amount of it goes to waste. Two major culprits behind such wastage are ghost electricity and power leakage. Ghost electricity, also known as vampire power or standby power, refers to the electricity consumed by appliances and devices when they are switched off or in standby mode. Though the amount drawn by each item may seem negligible, it adds up across all devices plugged into outlets 24/7. Power leakage, on the other hand, occurs during the transmission and distribution of electricity due to technical losses in the grid infrastructure. Both ghost electricity and power leakage are persistent problems that contribute to energy inefficiency, higher electricity bills, and increased carbon emissions.


Mitigating these issues requires an understanding of their prevalence as well as targeted solutions. This article will provide an overview of ghost electricity and power leakage within the Indian context. It will discuss causes, impacts, and most importantly, practical strategies to tackle them at the household and industry level. By addressing a blind spot in India’s electricity use, we hope to empower readers to optimize energy utilization and promote sustainability.


Statistics on Ghost Electricity in India



It is estimated that ghost electricity accounts for 5-10% of total residential electricity consumption in India. This translates to approximately 20-30 billion units of electricity lost annually to vampire power loads.


Studies indicate that Standby power can account for up to 10% of household electricity bills in India. With an average monthly consumption of 200 units for an urban household, this means 20 units per month may be consumed as ghost electricity.


Over 75% of appliances continue to draw power even when switched off. Some of the biggest contributors to ghost loads are set-top boxes, modems, phone chargers and kitchen appliances.


Industry estimates suggest that vampire power loads cost the Indian economy around ₹200 billion every year. This wasted electricity is enough to power all of Delhi for a month.


While accurate quantification remains difficult, it is clear that ghost loads present a significant drain on India’s strained electricity infrastructure. Tackling this issue can support the country’s aims to provide affordable and reliable access to power.


Causes of Ghost Electricity


Causes of Ghost Electricty


Ghost electricity is caused by a variety of factors related to the appliances we use in our homes and workplaces. The two primary causes are idle appliances and inefficient appliances.

Idle Appliances

Many appliances continue to draw a small amount of power even when switched off or not in use. This standby power allows appliances to power lights, clocks, remote controls and perform other secondary functions. Common culprits include TVs, cable boxes, printers, phone chargers and kitchen appliances. Even when powered down, these idle appliances consume electricity that shows up on your energy bill. According to an analysis by the International Energy Agency, standby power accounts for roughly 10% of residential electricity use worldwide.

Inefficient Appliances

Appliances that are old, faulty or have poor energy efficiency can contribute significantly to ghost loads. Refrigerators over 10 years old, incandescent bulbs, inefficient AC units and heaters are some examples. These appliances have to work harder to perform their functions, drawing more phantom power compared to Energy Star-certified high-efficiency models. Upgrading to energy-efficient appliances can lead to major savings by reducing this wasted standby power consumption.


Impact of Ghost Electricity


Impact of Ghost Electricity


Ghost electricity results in significant financial and environmental impacts. It is estimated that ghost consumption accounts for 5-10% of household electricity bills in India. This can amount to hundreds or even thousands of rupees in wasted expenditure per home annually.


At an aggregate level, ghost electricity leads to inflated national energy demand and electricity generation. The financial costs are passed on to consumers through higher electricity tariffs. Unnecessary generation also strains grids and distribution infrastructure.


Environmentally, ghost loads drive up greenhouse gas emissions associated with power plants across the country. Wasteful consumption of fossil fuel-based electricity contributes to India’s carbon footprint and hampers sustainability. The key impacts are:

  • Higher electricity bills for households and businesses
  • Inflated national energy demand and wasteful electricity generation
  • Increased greenhouse gas emissions from power plants
  • Strain on electricity infrastructure like grids and distribution networks

By addressing ghost electricity, India can reap energy and cost savings while also supporting climate change mitigation.


Power Leakage in India


Impact of power leakage


India faces significant challenges with electrical power leakage during transmission and distribution. According to government statistics, transmission and distribution (T&D) losses were estimated to be around 21.4% of total electricity generation in 2019-2020. This is substantially higher than the world average of around 8%.


These high T&D losses result from technical as well as commercial factors. On the technical side, inadequate investment over decades has led to an aging and overloaded power infrastructure riddled with inefficiencies. Nearly one-fourth of transformers installed are more than 15 years old. The distribution network has many bottlenecks that lead to frequent outages, voltage fluctuations, and power thefts. Commercial losses refer to electricity theft, non-payment by customers, and poor metering infrastructure. Estimates suggest commercial losses account for nearly two-thirds of total T&D losses in India.


The main impact of such heavy power leakage is financial losses for electricity utilities amounting to billions of dollars annually. This strains their ability to make fresh investments needed to upgrade infrastructure. For consumers, power leakage contributes to electricity shortages, frequent disruptions in supply, and higher tariffs. Environmentally, it represents wasted energy and carbon emissions. Tackling power leakage in India thus needs to become a priority, by modernizing the grid, regular maintenance work, investments in smart metering, and anti-theft measures.


Causes of Power Leakage


Causes of power leakage


There are two primary causes of power leakage in India’s electricity grid:

Technical Losses

A major source of power leakage is technical losses that occur during the transmission and distribution of electricity. Technical losses account for over 20% of total power generated in India. These are caused by:

  • Inefficient and outdated transmission infrastructure leading to losses. Much of the grid uses old transformers and low capacity transmission lines unable to handle the high loads.
  • Improper load management causing overload and heating of wires. Unbalanced loads across phases leads to neutral current overflow and losses.
  • Theft of electricity through illegal tapping of transmission lines also contributes to technical losses.


Another major factor is electricity theft which accounts for over 15% of total power leakage. Key ways this happens:

  • Illegal hooking directly to transmission lines and bypassing the metering system
  • Tampering of meters to under-report usage
  • Bribing officials to manipulate meter readings and electricity bills
  • Unmetered supply taps from the grid to industries and farms

These illegal tapping and theft from the system cause huge losses and inefficiencies.


Impacts of Power Leakage


Power Leakage in India.


Power leakage in electrical systems can have several concerning impacts if left unaddressed:


Power leakage leads to significant financial losses for electricity distribution companies, also known as discoms. Technical and commercial losses from power leakage can account for 20-30% of the total power purchased by discoms. This forces them to purchase extra power to compensate, driving up their costs. Ultimately, these losses get passed on to consumers through higher electricity tariffs and bills.

Load shedding

The loss of power through leakage lowers the overall availability of electricity in the grid. To manage demand when availability falls short, discoms resort to load shedding and power cuts. This impacts industries, businesses, hospitals, households and more. Power cuts hamper productivity and quality of life. They have cost the Indian economy billions in lost output and opportunities. For example, an estimate suggested power cuts may have resulted in India’s GDP growth slowing down by 0.6% in 2012.


Solutions for Households


Solutions for households


Indian households can take several steps to reduce ghost electricity and power leakage.

Use Smart Power Strips

Smart power strips are designed to eliminate phantom load by cutting power to outlets when devices are turned off or in sleep mode. This prevents devices from drawing power unnecessarily when idle. Smart strips also allow you to group devices, so you can turn off multiple appliances with one button press. This makes it easy to completely disconnect devices when not in use.

Use electricity tracking devices

Emerald, an IoT device, revolutionizes energy management by detecting wasteful energy practices. Connected to your electric meter, it tracks consumption, unveiling leaks and vampire devices—culprits behind unnecessary energy use. With real-time data and budgeting features, it empowers users to set consumption limits and receive alerts, ensuring efficient usage. Emerald transforms energy management, helping users identify and rectify wastage for a greener, cost-effective future

Invest in Energy-Efficient Appliances

Choosing appliances with the Bureau of Energy Efficiency’s star rating helps minimize standby power usage. Higher-rated appliances like refrigerators, air conditioners, and washing machines consume far less idle power. When purchasing new electronics, look at the standby power rating and opt for more efficient models. Retiring old, outdated appliances in favor of new energy-efficient ones can yield significant savings.

Switch Off and Unplug Devices

Getting into the habit of manually turning off devices and disconnecting their chargers when not in use goes a long way. Switch off lights and fans when leaving a room. Unplug the TV and set-top box when not watching. Disconnect unused chargers as they still use power when left plugged in. Make it a daily routine to ensure unused devices are powered off completely.


Solutions for Industry


Solutions for industry


India’s industrial sector accounts for over a third of the country’s total electricity consumption. Given the scale of operations, even minor sources of energy wastage can accumulate into massive losses. By identifying and rectifying areas of power leakage and ghost loads, industries can achieve substantial energy savings.

Conducting energy audits 

A detailed energy audit can accurately map energy usage patterns and identify opportunities for reduction. This allows industries to pinpoint equipment, processes or behaviors leading to energy waste. The audit results serve as a blueprint for implementing energy optimization measures. The Indian government offers industrial units various incentives to undertake energy audits under programs like PAT (Perform, Achieve and Trade).

Facility and equipment upgrades

Replacing old, inefficient electrical equipment like motors, pumps, fans and lighting with energy-efficient variants can significantly cut down ghost loads and technical losses. Modern devices incorporate smart power management features to minimize idle power consumption. Industries can also install smart meters, power optimizers, sensors and automation systems to optimize energy utilization.

Process optimization

Modifying manufacturing processes and production schedules to smooth out peak demand loads leads to improved energy efficiency. This involves rescheduling energy-intensive tasks to off-peak hours and optimizing equipment operating cycles to minimize idle runtimes. Furthermore, improving capacity utilization through techniques like overall equipment effectiveness (OEE) enhances the energy productivity of industrial assets.

Energy management systems

Industrial units can implement robust energy management solutions to continuously monitor, analyze and control energy flows. The system applies analytics to generate actionable insights on reducing wastage and improving energy efficiency. Automated controls and real-time optimization enable industries to minimize losses and track sustainability metrics.


With proactive efforts to tap into energy-saving opportunities, Indian industries can overcome issues like ghost loads and power leakage. The resulting energy and cost savings also boost their overall competitiveness and profitability.



In conclusion, ghost electricity and power leakage are major energy efficiency issues in India that lead to significant economic losses and carbon emissions each year. Though the exact figures are hard to measure, it is clear that hundreds of megawatts of electricity capacity are being lost.


To combat this, concerted efforts by households, industries, and policymakers are required. Simple solutions like switching off idle appliances, replacing old devices with energy-efficient models, proper equipment maintenance, and investments in grid technologies can drastically cut down wastage.


We all have a role to play in optimizing energy consumption and minimizing leaks in the system. It is time to take action both individually and collectively to build a more energy-secure future for India. Even small improvements in each home and factory will accumulate to make a big national impact.

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