How Delhi cut electricity loss from 50 to 5 percent
It slashed electricity losses from 50 to 5 percent
Delhi brilliantly illuminates Humayun’s Tomb on 14 August 2026, on the eve of India’s Independence Day.
It’s 6 a.m. on a cold January morning in 2002 in New Delhi. It’s still dark outside, and I’m in the kitchen preparing breakfast, packing lunches, and getting my two children ready to catch the school bus when, for the third time in a week, the power goes out. No lights, no mixer to finish my daughter’s puttu—her favorite rice dish—no kettle, no toaster. The bathroom is dark, and the kids are upset.
It will probably be hours before the power comes back on, so I grab a flashlight and light the candles that are set up around the house for these occasions. We’re behind schedule now. We pack the food we have, bundle up as the house turns chilly, and head outside, leaving a mess in the kitchen. We make our way to the bus stop in the dark—the streetlights are out, too—only to discover my daughter has missed her ride. Again. I’ll be late for work at Jamia Millia Islamia, a university where I am a professor of electrical engineering and teach power systems and smart grids. I just hope the power is on there.
This was a common scene for my family and all of Delhi in the early 2000s. Power outages happened almost daily and lasted hours. When the power was on, the quality was so poor that it would dim lights, flicker screens, and wreak havoc on appliances. Customer service at the power utilities essentially didn’t exist.
A child walks in July 2007 past a store in New Delhi specializing in reconditioned generators. The fear of power cuts during summer heat spurs demand for these generators so that residents can produce their own power.Nicholas Bradley/AFP/Getty Images
These problems had been getting worse through the 1980s and 1990s. The cause: an aging distribution grid bereft of crucial technologies, and electricity providers with little accountability. The situation became so bad that the city was losing more than half of its power through obsolete equipment and theft. These staggering losses meant that utilities got paid for only a fraction of the electricity they were trying to deliver. And the lack of funds prevented them from investing in better grid infrastructure.
But over the last quarter century, a remarkable effort by the government and the city’s distribution utilities has turned Delhi’s grid into a reliable, modern system. Power losses have shrunk from over 50 percent in 2002 to 5 to 6 percent in 2026—on par with France and Belgium, and better than Greece and Serbia. Delhi’s grid reliability index, a measure of how often electricity can be counted on, stood at around 70 percent in 2002 and has now topped 99.9 percent.
The bustling Main Bazar in the Paharganj neighborhood of Delhi increasingly uses more nighttime electricity, but reductions in electricity loss help counter demand. iStock
With reliable power, businesses across the city have blossomed. The streetlights are bright. The number of electric vehicles, including city buses, is growing daily. Quality of life has improved. Today, my family is comfortable year-round in our home despite Delhi’s scorching summers and cold winters. The chaos of losing power no longer hinders me from getting to work. The city still has problems—pollution, overcrowding, noise—but thankfully, reliable power is no longer among them.
The transformation of Delhi’s grid can serve as a model for other cities that suffer from decrepit power infrastructure. Regions of Albania, Argentina, Bangladesh, Brazil, Estonia, India, Kenya, Pakistan, Sri Lanka, Uganda, and Venezuela are reeling from heavy losses in their distribution grids. Their problems look like Delhi’s 25 years ago. I believe it’s possible to improve electricity in these places by adapting the changes Delhi made. Here’s an inside look at how the city accomplished it.
The city of Delhi hosts the capital of the Republic of India, and sits along the Yamuna River in the northern part of the country. It’s home to about 23 million people and is one of the most densely populated areas in the world. Delhi’s grid includes thousands of kilometers of power lines, and peak electricity demand reached an all-time high this year of 8,748 megawatts. The city currently buys 76 percent of its power from central generating companies and private players from neighboring states. Energy generation within the city is restricted to natural gas and renewable sources. Nearly 48.5 percent of the city’s power comes from coal, about 26.5 percent from natural gas, and the rest from carbon-free sources, led by hydropower at 15.6 percent.
Tata Power replaced about 5 kilometers of overhead lines with underground cables, which reduced electricity loss and improved the aesthetics of Delhi’s streets, such as the Janta Flats in the Shalimar Bagh neighborhood.Tata Power-DDL
By the early 2000s, Delhi’s nearly 100-year-old power distribution system was in serious disrepair. Everything was old—lines, transformers, circuit breakers, switches. New grid technologies were needed to keep up with new kinds of electricity loads, but there was little money to upgrade components.
The shabby state of the grid caused many problems, most notably high electricity losses, where electricity vanishes primarily as heat. The cause of the losses was a classic electrical problem: too much current flowing through a network that wasn’t designed to carry it efficiently.
To understand the problem, it helps to understand how modern power grids work. Typically, they include generation, transmission, and distribution. After power is generated, transformers convert the electricity to high voltage levels—typically 132, 220, 400, or 765 kilovolts in India. Transmission lines then carry the power over long distances to receiving substations that are closer to where customers need electricity. Transformers then step down the voltage (to 66, 33, or 11 kV in India) and distribution lines branch out, carrying the power to customers. The whole grid works primarily on alternating current.
Jamaica has been battling rampant power theft, and Argentina has struggled with inflation and grid upkeep, causing an increase in electricity losses. Meanwhile, Singapore has reduced losses from 6.6 percent to a nearly nonexistent 0.2 percent from 2002 to 2023.
Distribution networks carry both active and reactive power. Active power is the energy used to perform useful work (and is measured in watts). Reactive power is the power that flows back and forth in an electric circuit, building electric and magnetic fields (measured in volt-ampere-reactive, or VAR). Although it doesn’t perform useful work, reactive power is necessary for many devices, such as induction motors, transformers, and computers (typically any circuit or device with inductance or capacitance elements).
When there are a lot of devices consuming reactive power on the same line, the overall current carried by the line—the sum of the active and reactive current—must increase. The more current in the line, the more the line heats up and the more energy that’s wasted as heat.
In addition to current, resistance in the line will increase losses as well. Resistance is when electrons encounter opposition as they move through the conductive material (typically aluminum in a power grid). Longer lines with many branches and connection points will increase resistance. The rule of thumb is that line loss equals the square of the current multiplied by the resistance.
Reactive power creates a second problem: It causes the voltage along the line to drop. And when the voltage falls, many modern electrical devices try to maintain roughly the same level of performance by drawing more current. That higher current produces even greater losses in the line and causes the voltage to fall further.
Delhi distribution provider Tata Power decreased electricity losses in its region from 53.1 percent in 2002 to 6.3 percent in 2023. The company used a comprehensive set of interventions and technologies, including increasingly sophisticated meters.
In a healthy grid, the utility will take compensatory measures to lower the current and maintain the voltage all the way to the ends of the lines. But in Delhi, this wasn’t happening. The result was a vicious cycle. Reactive loads increased the current, the higher current increased energy losses and lowered the voltages, lower voltages forced devices to draw more current and further increased the losses.
In some parts of Delhi, the effect was so severe that residents took matters into their own hands. A colleague of mine who lived in a different part of the city constantly experienced voltage that was too low for her appliances to operate reliably, so she had to install her own voltage stabilizer. At my home, we bought an inverter and battery system to keep a fan and a few lights running during the many outages.
The losses in Delhi weren’t caused solely by technical problems. Theft of electricity was rampant, by both the powerful and the powerless (in both senses of the word). Businesses, residential customers, and utility employees with vested interests would siphon electricity from the grid. It was easy to illegally hook into a streetlight or a distribution line running close to one’s house or factory. Utilities didn’t have the resources to identify theft or penalize offenders. Even if they could, the courts were already overburdened, and an electricity regulatory commission that could push for reforms had not yet fully formed.
Updated meters have made billing easier and more accurate. Tata Power-DDL
Making matters worse, the utilities and their employees were rarely held accountable for their actions, and so corruption plagued the system. Junior engineers and line workers, many of them lacking appropriate technical skills, were tasked with handling nearly every issue, including outages, flickering, and bill payment. This was too much authority in the hands of people with too little training.
On top of that, customers didn’t pay their bills. Meters were old, frequently faulty, and easily tampered with. Utility employees would take a meter reading by visiting the customer’s property, noting the reading in a book, entering it in a ledger or on a computer back at the office, and converting it into an electricity bill that would get dropped off at the customer’s property. This process left a lot of room for incorrect billing.
To pay a bill, customers had to stand in long queues at the utility offices, which had limited business hours. Not wanting to take off a half day of work for this, many customers simply didn’t pay. And there was no penalty for not paying—there were no regulations allowing the utilities to cut off a customer’s power. (I paid my bill by having a family member stand in line for me.)
The combined commercial and technical losses left Delhi’s utilities collecting payment for less than half of the electricity they were supplying in the early 2000s.
Such problems weren’t unique to Delhi. On average in 2002, state utilities across India experienced electricity losses of nearly 37 percent. My country desperately needed systemic reforms, but authority over electricity was split between the central and state governments so any decision-making was fractured. States managed most of the generation, as well as transmission and distribution, while the central government oversaw generation that supplied multiple states, such as hydropower, fossil fuel plants, and nuclear plants. The central government could push reforms, but the states determined whether those reforms would succeed. Making matters worse, most states put a single organization in charge of generation, transmission, and distribution, giving that entity too much control and reducing transparency and competition.
A team of technicians with BSES Rajdhani Power maintains an insulator string on a large power transformer in 2011. BSES Rajdhani Power
In 2001, India’s central government began writing some historic legislation that became the landmark Electricity Act, 2003. Among the grand reforms aimed at transforming the country’s power industry, it unbundled state oversight of grid networks, creating separate entities for generation, transmission, and distribution. It also opened up the power sector to privatization. It allowed large electricity customers to bypass local distribution companies and purchase electricity from competitors or build their own power plants. It created a central regulatory agency responsible for determining interstate tariffs and promoting market competition in the power sector. And it created mechanisms for prosecuting electricity theft.
Hundreds of capacitor banks have been installed in Delhi to supply reactive power at strategic locations and help stabilize voltage.Tata Power-DDL
In 2002, Delhi was already taking drastic action to fix its grid. The organization overseeing Delhi’s distributio