Excessive power consumption is widely considered as a major impediment to designing future microprocessors. With the continued scaling down of threshold voltages, the power consumed due to leaky memory cells in on-chip caches will constitute a significant portion of the processor's power budget. This work focuses on reducing the leakage energy consumed in the instruction cache using a compiler-directed approach. We present and analyze two compiler-based strategies termed as conservative and optimistic. The conservative approach does not put a cache line into a low leakage mode until it is certain that the current instruction in it is dead. On the other hand, the optimistic approach places a cache line in low leakage mode if it detects that the next access to the instruction will occur only after a long gap. We evaluate different optimization alternatives by combining the compiler strategies with state-preserving and state-destroying leakage control mechanisms.