Which statement best describes why transmission losses influence energy system design?

• A. Transmission losses influence the choice toward distributed generation by reducing the economics of long-distance grids.
• B. Transmission losses have no impact on energy system planning.
• C. Transmission losses only affect hydro plants.
• D. Transmission losses always favor coal.

Answer: (A)

Transmission losses are energy lost as heat in the lines as electricity moves from where it's produced to where it's used. These losses grow with distance and the amount of power being transmitted, so they directly affect how the system is designed. If long-distance transmission would waste a lot of energy and money, the economics favor placing generation closer to demand or building smaller, localized generation and distribution networks. In other words, higher transmission losses push designers toward distributed generation to keep delivered energy costs down and reduce the need for sprawling, high-capacity transmission lines. That’s why this statement best captures how losses shape energy system planning.

The other ideas miss this key economic driver: losses do impact planning, not just something isolated to one type of plant; all generation types experience delivery losses, not only hydro; and you can’t say losses always favor coal—economic and environmental factors can make other fuels preferable in different contexts.