Distribution Networks & Assets

Efficient distribution networks are essential for delivering reliable and affordable electricity. Electricity passes through multiple assets — including transformers — as it travels from power plants to end users, making distribution efficiency a critical factor in overall system performance. Reducing technical losses and improving asset management strengthens grid resilience, lowers costs, and supports the integration of renewable energy and electrified end uses.

Efficient distribution networks are critical to:

Reduce electricity losses across transmission and distribution systems
Improve reliability and quality of supply
Lower system costs for utilities and consumers
Enable higher shares of renewable energy and electrification

The Energy Efficiency Opportunity

Energy-efficient transformers and improved distribution assets can significantly reduce electricity losses and system-wide energy demand. As electricity use grows, improving the efficiency of distribution networks is one of the most cost-effective ways to strengthen power systems while limiting emissions.

Electricity losses can be significantly reduced 
Energy-efficient transformers reduce transmission and distribution electricity losses, improving overall system efficiency and performance. 
Electricity demand for transformers is growing 
Without policy action, electricity consumption associated with transformers could increase by over 49% by 2040. Policy measures can substantially limit this growth. 
Large electricity savings by 2040 
Improving transformer efficiency could deliver nearly 55 TWh of annual electricity savings by 2040, reducing the need for additional power generation. 
Major system and climate benefits 
Efficiency improvements in transformers could avoid the construction of around 25 large power plants, reduce CO₂ emissions by approximately 45 million tonnes annually, and save consumers around USD 7 billion on electricity bills.