Definition
Grid losses are the electrical energy dissipated as heat from cables, transformers and other grid equipment when electricity is transmitted from generation to the consumer. Grid losses are a physically unavoidable consequence of Ohm's law (P = I²R) and increase with distance, current magnitude and the resistance of the conductors. In the Norwegian system, grid losses typically amount to 5–8% of total energy transmitted. The grid companyCompany that owns and operates electricity grids and is responsible for power supply to end users. purchases electricity to cover grid losses and passes this cost on through the grid tariffThe component of electricity customers' bills that covers grid rental - regulated by NVE.. MDMMeter Data Management - system for collection, storage, quality assurance and distribution of metering data from the electricity grid. systems play a central role in the accurate calculation of grid losses: total energy injected (from generation metering points) minus total energy delivered (to consumption metering points) equals the grid loss in the relevant network segment. Accurate grid loss calculation is important for the grid company's finances and for ElhubNational hub for metering data and market processes in the Norwegian electricity market.'s balance calculations.