Electricity wheeling, also known as grid or power wheeling, is a process that allows electricity to be transmitted from one location to another through the existing electrical grid infrastructure. It enables consumers, generators, or entities to transport electricity across different locations without the need to build dedicated transmission lines.

How Electricity Wheeling Works

1 Generation Facility

Electricity wheeling typically involves a generation facility, such as a solar plant, located in one area. This facility produces electricity that needs to be transported to another location, which may be far away or connected to a different network tap-in point.

2 Wheeling Agreement

The parties involved in electricity wheeling enter into a wheeling agreement. This agreement outlines the terms, conditions, and pricing for the transmission of electricity from the generation facility to the desired location. It establishes the rights and responsibilities of the generator, the transmission provider, and the receiving entity.

3 Transmission and Distribution

The electricity generated at the solar plant is injected into the transmission system at the point of interconnection. The transmission system consists of high-voltage power lines that transport electricity over long distances. The electricity is then stepped down through transformers and distributed through the local distribution network to reach the recipient site.

4 Metering and Settlement

Metering devices are installed to measure the amount of electricity being transmitted from the generation facility and received at the destination location. Accurate metering ensures accurate billing and settlement between the generator and the receiving entity. Metering data is used to calculate the energy consumption and facilitate financial transactions.

Benefits of Electricity Wheeling

Flexibility and Market Access
Electricity wheeling allows generators and consumers to access markets that may be geographically distant or operate under different regulatory frameworks. It enables renewable energy generators in remote areas to supply electricity to urban centers or areas with high demand, expanding market opportunities for renewable energy projects.
Cost Savings
Electricity wheeling can offer cost savings compared to constructing dedicated transmission infrastructure. It eliminates the need for costly investments in new transmission lines, substations, and associated infrastructure. Wheeling agreements provide an economical solution for electricity transmission, particularly for renewable energy projects seeking to access established grids.
Grid Optimization
Wheeling electricity from renewable energy sources can help optimize the use of existing transmission infrastructure. It allows for better integration of renewable energy into the grid, reducing curtailment and maximizing the utilization of clean energy resources. This contributes to a more sustainable and efficient power system.
Energy Market Efficiency
Electricity wheeling promotes competition and efficiency in the energy market. It encourages the development of renewable energy projects in resource-rich areas, driving investment and innovation. Wheeling agreements facilitate the trading of electricity, opening up opportunities for generators to sell excess power and for consumers to access a diverse range of energy sources.

Considerations for Electricity Wheeling

Regulatory Framework
Electricity wheeling is subject to regulatory frameworks and policies that vary by area. It is important to understand the regulations and requirements governing wheeling agreements, transmission access, and pricing structures in the relevant area.
Transmission Capacity
The transmission capacity of the existing grid infrastructure needs to be assessed to determine the feasibility and limitations of electricity wheeling. Grid studies and coordination with transmission operators are necessary to ensure that the transmission system can accommodate the desired level of electricity transfer.
Wheeling Charges
Wheeling agreements involve charges for the use of transmission and distribution infrastructure. These charges may include transmission fees, distribution fees, and other associated costs. It is essential to consider the financial implications and negotiate favorable pricing terms within the wheeling agreement. New Southern Energy is skilled in this regard and is able to provide guidance and manage this process.
Technical Compatibility
Compatibility between the generation facility and the grid is crucial to ensure a seamless and efficient transmission of electricity. Technical requirements, such as voltage levels, frequency regulation, and power quality standards, must be met to maintain grid stability and reliability.
Consultation and Expertise
Navigating the complexities of electricity wheeling requires expertise in power system planning, regulatory compliance, and contract negotiation. New Southern Energy is well placed to support your wheeling project with expertise.

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