Material Insights · Understanding the Material World

Distribution grids, mini-grids and interconnectors: Efficiency and losses

Theft, unpaid bills and why Togo lost 71% of its power

What this tab covers How much energy is lost while it moves and while it waits in storage or transit, and how much energy the transport itself consumes, in per cent.

In well-run systems total network losses are around 5%; where theft, unmetered supply and unpaid bills are common the shortfall can be three times higher, and in some African countries much more. Mini-grids add some battery and conversion losses but can be more reliable than weak utility grids.

Chart: Efficiency ranges

Whole chain

Losses by measure

MeasureRangeTypeWhat is measured
Transmission and distribution losses, United States5%1Whole chainShare of electricity transmitted and distributed that is lost, average 2018 to 2022
Transmission and distribution losses, African countries6.2 to 71% of output21Whole chain2014, from Mauritius (lowest) to Togo (highest); South Africa 8.4%, Nigeria 16.1%, Kenya 17.6% (World Bank indicator based on IEA data)
Aggregate technical and commercial (AT&C) losses, India15.04 to 16.3%45Whole chainShare of energy input not paid for (technical loss, theft, billing and collection shortfalls): 16.3% in FY2023-24, 15.04% in FY2024-25
AT&C losses, India, FY2013-1422.62%4Whole chainSame measure, a decade earlier
Uptime, leading African mini-grid developers99% of time7Theoretical limitShare of time supply was available in 2021 for Africa Minigrid Developers Association members, up from 90 to 97% in 2018

Holding periods and inventory

MeasureValue
Inventory in the wiresNone: distribution networks hold no stock, so supply must match demand instantly
Mini-grid battery storageTypically 200 to 500 kWh per site, to carry evening and night demand7
Battery storage on US distribution networksUtility capital spending rose from USD 97 million in 2022 to USD 723 million in 20232

Technical losses are heat in conductors and transformers, highest on long rural feeders and overloaded low-voltage circuits. Commercial (non-technical) losses are power delivered but never paid for: illegal connections, faulty or bypassed meters and uncollected bills. India's AT&C measure combines both, which is why it is much higher than the US technical figure; the very high African figures also include theft and unbilled supply.

In a solar mini-grid, energy cycled through batteries loses a share in charging and discharging, and inverters lose a little more. Load factor matters as much: ESMAP's projected 2030 cost falls from USD 0.29 to USD 0.20 per kWh if average use rises from 22% to 40% of capacity, because fixed costs are spread further and less solar is wasted.

Sources

  1. How much electricity is lost in electricity transmission and distribution in the United States? (FAQ) US EIA, 2023
  2. Grid infrastructure investments drive increase in utility spending over last two decades (Today in Energy) US EIA, 2024
  3. Discoms post INR 2,701 crore profit in FY25 after years of losses (PTI, reporting Ministry of Power statement) Outlook Business, 2026
  4. Adani Electricity Mumbai, Noida Power and Gujarat discoms top govt ratings Business Standard, 2025
  5. Mini Grids for Half a Billion People: Market Outlook and Handbook for Decision Makers (2022 edition) World Bank ESMAP, 2022
  6. Electric power transmission and distribution losses (% of output), country ranking, Africa (World Bank WDI data from IEA) IndexMundi, reproducing World Bank, 2014