Efficient regulation of the energy transfer between generating, storage and load subsystems is a topic of current practical interest. A new strategy to achieve this objective, together with its corresponding power electronics implementation, was recently proposed by the authors. The device is called dynamic energy router (DER) because, in contrast with current practice, the regulation of the direction and rate of change of the power flow is done without relying on steady–state considerations. A key assumption for the correct operation of the DER is that dissipation in the system is negligible. Unfortunately, in the presence of dissipation the original DER ceases to be operational. In this paper a new DER that takes into account the presence of losses is proposed. Simulation and experimental evidence of the performance improvement with the new DER are presented.