So when someone tells you that some gadget consumes energy, they are either lying, mislead, or they use some kind of made-up definition.
Or just using stupid, illogical language – just like people who say "twice more" when they actually mean "twice as much" (which includes basically all reporters writing in Finnish, even though the language actually supports the logically correct expressions).
In this particular case, that stupid language stems from the simplistic view that the device "eats" energy to produce an useful effect. Which is not true, because devices just convert energy in some form to some other different forms, one of the resulting forms always being heat. If the purpose is not to produce heat, then that heat is usually called "waste heat".
To translate from this stupid language, "power consumption" is the amount of energy one needs to supply to the device, and "power dissipation" is the amount of waste heat it produces.
In laptop, desktop and server processors, TDP (
thermal design power) is a related term. The instantaneous heat produces varies a lot, because the same processor package contains also connectivity logic, cache RAM, and so on. TDP indicates the amount of waste heat any cooling system should be able to dissipate, so that the semiconductor junction temperatures in the package do not exceed their operating limits. It is nowhere near exact, as it depends on what the processor and its subsystems are doing at any point in time, but it is a widely accepted term to approximate the "power dissipation" in a laptop/desktop/server processor.
Almost all of the input power in computers is "dissipated", turned into waste heat. As discussed above, a little bit of it goes to producing light, sound, or electromagnetic waves (radio, WiFi, LTE). When driving external buses most of the energy is turned into waste heat in the transceivers and transmission lines. The majority of it becomes waste heat.
(If you live in cold climate, and often use electricity to heat your house, placement and configuration of the computer matters a lot. Indeed, I've helped build one machine that had inverted airflow –– intake at the top, exhaust at the bottom –– just because it happened to make sense for its use case.)
If the circuit OP discussed does anything useful other than heat up, then indeed not all of the "consumed power" is "dissipated" as waste heat. Sometimes, the difference may be tiny, but of vast importance to humans. Think of things like LCDs: changing the crystal orientation with an electric field takes very little energy, but to do so in an useful way requires quite a bit of processing, maybe even a radio receiver (for a radio-synchronized clock). Or better yet, an e-ink reader! At steady state, it really requires no energy; it only takes energy to change its state. To make the new state meaningful, the energy conversions need to occur in rather interesting patterns; thus, the change can take quite a lot of energy. In such cases, you would be technically correct to say that basically all energy "consumed" by the device is "dissipated" as waste heat; but, in
human terms, the fact that the tiny bit that was not, produces the desired and useful effects (the new picture we can read or look at), means that that tiny bit is worth all the waste heat!
With that in mind, I do suspect that the underlying cause of the disagreement between tarun172 and their colleagues is that they did not specify clearly enough the
domain in which they consider the circuit or system. Very little energy is needed to produce many human-useful and desired effects, compared to the amount of energy converted to waste heat. However, humans definitely see the waste heat as worth it, to get the desired effect. So, do you and your colleagues consider that tiny bit of non-heat energy as significant or not? One answer equates e-readers and big resistors connected to a Li-ion battery, the other distinguishes clearly between them. Both answers/viewpoints are correct, just in different domains.