What Are Transmission and Distribution (T&D) Losses?
Transmission and distribution (T&D) losses refer to the energy lost as electricity travels from power plants to end users through the electric grid. These losses occur due to resistance and heat in power lines and transformers.
In greenhouse gas (GHG) accounting, T&D losses are important because they represent additional emissions not captured in standard electricity use.
T&D Losses in the GHG Protocol
Under the GHG Protocol, emissions from purchased electricity fall under Scope 2. However, T&D losses are classified as Scope 3, specifically Category 3: Fuel- and energy-related activities (not included in Scope 1 or 2).
This means that:
Scope 2 includes emissions from the electricity you actually consume.
Scope 3, Category 3 includes emissions from the additional electricity that was lost in transit while delivering that electricity to you.
Why T&D Losses Matter
Including T&D losses gives a more accurate picture of your total emissions related to electricity use. It ensures you're accounting not just for what you use, but also for what had to be generated to deliver that usage.
Example:
If your organisation consumes 100 MWh of electricity, and the grid has a 6% T&D loss rate, then 106.38 MWh had to be generated. The emissions from that extra 6.38 MWh belong in Scope 3.
How CarbonTrail Helps
CarbonTrail automatically calculates emissions from T&D losses where applicable, using regional loss factors and emission intensity data. This ensures your Scope 3 reporting reflects the full impact of your electricity use — not just what you see on the bill.