The Rules require that AEMO publish the inter-regional loss factor equations determined under clause 3.6.1(e) of the Rules and the intra-regional loss factors revised under clause 3.6.2(f) of the Rules by 1 April prior to the financial year in which they are to apply.
As electricity flows through the transmission and distribution networks, energy is lost due to electrical resistance and the heating of conductors. The losses are equivalent to approximately 10 percent of the total electricity transported between power stations and market customers.
Energy losses on the network must be factored in at all stages of electricity production and transport to ensure the delivery of adequate supply to meet prevailing demand and maintain the power system in balance. In practical terms, this means that more electricity must be generated than indicated in simple demand forecasts to allow for this loss during transportation.
The impact of network losses on spot prices is mathematically represented as transmissions and distribution loss factors. Loss factors are calculated and fixed annually to facilitate efficient scheduling and settlement processes in the NEM.
Version 3 of this document includes the recalculation of Marginal Loss Factors for Lower Tumut, Shoalhaven, Yarwun – Rio Tinto, Yarwun – Boat Creek and Yarwun co-generation.
Version 3.1 of this document includes the Marginal Loss Factor for the recently registered Hepburn Community Wind Farm (Embedded, Market Non-scheduled).
For further information on this document, please contact: Keng Loh, Manager System Performance.