Marginal Loss Factor — a multiplier that adjusts revenue for transmission losses between a site and the regional reference node. < 1 means the site is electrically distant.
A Marginal Loss Factor (MLF) is a multiplier AEMO applies to a generator or battery's metered output to account for electrical losses between its connection point and the regional reference node used to set the spot price. An MLF below 1.0 means the site is electrically distant from the reference node (or otherwise loss-heavy), so it is paid on less than its raw metered MWh; an MLF above 1.0 works the other way.
MLFs are set annually by AEMO and can shift meaningfully year to year as the surrounding network and generation mix changes, which is one reason two batteries with identical dispatch profiles in the same region can still earn measurably different revenue per MWh. NEMPulse applies each unit's published MLF when calculating revenue.
Related terms: RRP
See also: Methodology
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