Power Losses in Energy Generation: Mechanisms, Mitigation Strategies, and Pathways to a Sustainable Future

Although power losses in electricity systems have been widely studied, most research remains focused on the transmission and distribution stages, leaving the generation stage largely overlooked. Thermodynamic, operational, and resource‐variability factors at this stage play a decisive role in determining overall energy system efficiency. This article, for the first time, provides a comprehensive and integrated review of loss mechanisms, identifying and categorizing the key contributors to generation‐stage losses across all major technologies, including fossil fuel plants, nuclear reactors, and renewable energy sources. Drawing on authoritative international datasets, the review analyzes the environmental and operational implications of these losses and demonstrates how neglecting the generation stage can lead to biased efficiency assessments and suboptimal energy‐policy decisions. Furthermore, the article provides forward‐looking recommendations, presenting emerging technologies, such as advanced energy cycles, artificial intelligence‐based optimization, next‐generation storage systems, and digital‐twin platforms as promising pathways toward lower generation‐stage losses and a more efficient, low‐carbon energy future, while also serving as a roadmap for future research by other scholars.