This document discusses power dissipation in VLSI systems. It defines power, energy, and average power. Dynamic power is required to charge and discharge load capacitances when transistors switch. Static power is consumed even when the chip is quiescent, due to leakage currents. Techniques for reducing power include lowering capacitance, supply voltage, frequency, and leakage through body biasing and temperature control. The document breaks down power sources and discusses dynamic voltage scaling to optimize power usage.