A
system for electric grid utilization and optimization, comprising a communications interface executing on a network-connected
server and adapted to receive information from a plurality of iNodes, the plurality of iNodes comprising a source
iNode, a sink
iNode, and a plurality of transmission or distribution iNodes, an event
database coupled to the communications interface and adapted to receive events from a plurality of iNodes via the communications interface, a modeling
server coupled to the communications interface, and a statistics
server coupled to the event
database and the modeling server, wherein the modeling server, on receiving a request to establish an allocation of at least one of transmission losses, distribution losses, and ancillary services to a specific sink
iNode, computes at least one virtual path for flow of
electricity between a source iNode and the specific sink iNode and wherein the modeling server further computes, for each transmission or distribution iNode included in the computed virtual path, at least one
energy loss and allocates a portion thereof to the specific sink iNode, is disclosed.