Abstract: It is essential for the regional generation right trading market based on power pool to adopt the marginal clearing pricing method in order to promote the formation and development of the generation right trading market.However,generation right trading under marginal clearing mechanism cannot match the parties to the transaction clearly,consequently,it is difficult to define the responsibility for network loss compensation and transmission cost.In order to solve this problem,the loss compensation methods for regional generation right trading under marginal clearing mechanism are proposed.Firstly,the marginal clearing model for yearly or monthly regional generation right trading is established.Secondly,the transaction power is separated with principle of "near offset",which makes it convenient for the division of the transaction power into intra-and inter-province transactions,and the differentiation of intra-province transaction power with different voltage levels.Thirdly,the network loss compensation methods for transaction power in the provinces and between provinces are proposed based on the principle that the transmission losses raise with voltage transformation and the power flow tracing method respectively.Finally,a system with twelve units in four provinces participating in the monthly regional generation right trading is used for case studies to illustrate the characteristics and validity of the proposed methods.