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Loss factors and regional boundaries
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In this section
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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% 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 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 transmission and distribution loss factors. Loss factors are calculated and fixed annually to facilitate efficient scheduling and settlement processes in the NEM.
Methodology
Guidelines
Transmission Loss Factors
Regional Boundaries and Marginal Loss Factors for the 2018-19 Financial Year
29 March 2018 (1.7 MB, pdf)2018-19 MLF Applicable from 01 July 2018 to 30 June 2019
29 March 2018 (1.3 MB, pdf)Regional Boundaries and Marginal Loss Factors for the 2017-18 Financial Year - updated 06 November 2017
13 November 2017 (3.2 MB, pdf)2017-18 MLF Applicable from 01 July 2017 to 30 June 2018 - updated 06 November 2017
13 November 2017 (82 KB, xlsx)Regional Boundaries and Marginal Loss Factors for the 2016–17 Financial Year
05 January 2017 (2.2 MB, pdf)2016–17 MLF Applicable from 1 July 2016
05 January 2017 (92 KB, xlsx)- Regional Boundaries and Marginal Loss Factors for the 2015–16 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2014–15 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2013–14 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2012–13 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2011–12 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2010–11 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2009–10 Financial Year
- Regional Boundaries and Marginal Loss Factors for the 2008–09 Financial Year
Distribution Loss Factors
- Distribution Loss Factors for the 2018–19 Financial Year (743 KB, pdf)
- Distribution Loss Factors for the 2017–18 Financial Year (673 KB, pdf)
- Distribution Loss Factors for the 2016–17 Financial Year (657 KB, pdf)
- Distribution Loss Factors for the 2015–16 Financial Year (253 KB, pdf)
- Distribution Loss Factors for the 2014–15 Financial Year
- Distribution Loss Factors for the 2013–14 Financial Year
- Distribution Loss Factors for the 2012–13 Financial Year
- Distribution Loss Factors for the 2011–12 Financial Year
- Distribution Loss Factors for the 2010–11 Financial Year
- Distribution Loss Factors for the 2009–10 Financial Year
- Distribution Loss Factors for the 2008–09 Financial Year
Archived loss factor documents may be obtained upon request from the AEMO Information & Support Hub.
Provision of indicative marginal loss factors
Interested parties may on occasion require marginal loss factors (MLFs) under conditions that differ from the Forward Looking Loss Factor (FLLF) methodology. Examples include:
- A proponent may wish to assess the potential impact on published MLFs if a generating unit is installed or upgraded at a particular connection point.
- A market customer may wish to assess the impact on the published MLF at a connection point without the contribution of a nearby generating unit.
- A market participant may wish to assess the MLF of an embedded generator for which AEMO does not normally calculate and publish an MLF.
To assist interested parties with such requests, AEMO currently provides a service to calculate indicative MLFs under non-standard assumptions for a nominal fee.The following document provides details of the indicative MLF calculation process, including fees and data requirements.
Provision of Indicative Marginal Loss Factors
13 December 2013 (164 KB, pdf)
Indicative extrapolation input data for 2018-19 Marginal Loss Factors
AEMO conducted an indicative extrapolation study to assist generators in determining whether the historical generation data used by AEMO is reasonable for the 2018-19 MLFs calculation.
Indicative extrapolation input data for 2018-19 Marginal Loss Factors:
- Indicative extrapolation input data for 2018-19 loss factors (391 KB, pdf)
- Indicative extrapolation results for 2018-19 loss factors (100 KB, xlsx)
Indicative extrapolation input data for 2017-18 loss factors
28 October 2016 | filesize: 391 KB (pdf)Indicative extrapolation study results for 2017-18 loss factors
28 October 2016 | filesize: 100 KB (xlsx)Indicative extrapolation input data for 2016–17 loss factors
11 November 2015 | 486 KB (pdf)Indicative extrapolation study results
11 November 2015 | 78.9 KB (xlsx)