I = V / R can be restated as V = I R
Now you can substitute the equation for V into the other equation:
P = V I substituting for V we get P = IR I, or P = I2R
What this equation tells you is that the power consumed by the wires increases if the resistance of the wires increases (for instance, if the wires get smaller or are made of a less conductive material). But it increases dramatically if the current going through the wires increases. So using a higher voltage to reduce the current can make electrical systems more efficient. The efficiency of electric motors also improves at higher voltages.
This improvement in efficiency is what is driving the automobile industry to adopt a higher voltage standard. Carmakers are moving toward a 42-volt electrical system from the current 12-volt electrical systems. The electrical demand on cars has been steadily increasing since the first cars were made. The first cars didn't even have electrical headlights; they used oil lanterns. Today cars have thousands of electrical circuits, and future cars will demand even more power. The change to 42 volts will help cars meet the greater electrical demand placed on them without having to increase the size of wires and generators to handle the greater current.
I hope this helps.
Sources: http://www.howstuffworks.com/electricity...