Electricity grids, with both direct and alternating current, are subject to losses. This means that part of energy injected in one side of the line is lost, and the energy received at the end of the cable is less than the energy initially sent.
Loss handling is currently implemented on the Baltic cable between Sweden and Germany (SE4 and DE) and NordNed cable between Netherlands and Norway. The loss factor on NordNed cable is set to 3,2% while the loss factor on Baltic Cable is set to 2,4% and is used in the below example.
Example: A sell position of 100 MW at PX A will lead to buy position of 97,6 MW at PX B (assuming a loss factor of 2,4%).
Hence, volume physically exported from one country will not be the same as the one imported by the other country. Capacity limits given to each line applies to flows before losses.
This condition is satisfied at equality as long as the line is not saturated. On the other hand, the line will not be used if the price difference is too small.