Heat. On less well designed (or incorrectly used) Transformers you can get current leakage too.
The main source of energy loss in a transformer is through resistive losses in the winding due to resistance in the conductor material. This leads to energy being converted into heat during the transfer of power. Other sources of energy loss include core losses due to hysteresis and eddy currents in the transformer core.
Electrical (alternating current)
The device you are referring to is called a transformer. Not only can a transformer increase voltage, it can decrease voltage as well. These are known as a step up transformer for increasing voltages and step down for decreasing voltages.
No. A transformer doesn't source or sink energy, or convert energy from one form to another.The ideal transformer merely changes the parameters of an electrical current, with no effect on energy levels.A non-ideal (real-life) transformer decreases the energy in the electrical circuit, because its lossesrob some of the energy and turn it to heat.
Eddy currents act to increase the temperature of a transformer's core above ambient temperature, resulting in a loss of energy through heat transfer -thus reducing its efficiency.
Friction is not a source of energy loss in a machine.
the efficiency is maximum in a transformer when no load loss is equal to load loss.
None, really -it does exactly what it's supposed to do with very little energy loss.
If you have to pay for the stepdown transformer, yes. If that is provided free, there is a small loss of energy in the transformer, maybe about 5%, and it depends on whether the meter is installed before or after the transformer.
pole-mounted electrical transformer
Excitation current is the current necessary to "turn on" the transformer so it can be used. It's energy that is lost in the use of the transformer. Most of this loss I believe is associated with the hysterisis loop, although some will be lost as eddy currents.
Burn fat as primary source of energy