Continue to Site

Eng-Tips is the largest engineering community on the Internet

Intelligent Work Forums for Engineering Professionals

  • Congratulations waross on being selected by the Eng-Tips community for having the most helpful posts in the forums last week. Way to Go!

How is power sold directly between generator and remote user across different utility entities?

rockman7892

Electrical
Apr 7, 2008
1,148
US
This is a question which I've wondered about for quite some time and although I think the answer comes down to commercial agreements as opposed to flow of electrons I was curious to hear from some of the experts here.

As an example I've heard of scenarios where a new generation plant or renewable asset was being built to provide power to a particular customer (say large data center) or load center that may be located in a very remote geography from the generation plant (for example lets say across a state or even multiple states away). There is an example here in FL where I am with a generation plant in the central part of the state being used to alleviate generation and cost in the southern part of the state.

In the example above lets say there are no direct transmission lines to serve load centers directly from generation and thus power must flow across bulk power transmission system to reach its load. Obviously the flow of electrons and power cannot be controlled and thus in above scenarios generation power may flow through multiple utilities, municipals, etc... In this case how exactly does a remote generator impact a customer in a remote location directly when it has to pass through several other utilities or stakeholders?

I'm assuming it has something to do with commercial and bilateral agreements between stakeholders but cant quite put my finder on it. I don't see how a bilateral agreement between two remote locations can stand alone when the power flow from point a to b is impacted by general electrical wholesale market (day ahead trading etc..).

Would love to learn how this process works if anyone has insight.
 
Replies continue below

Recommended for you

There should have been a "not" in front of supplying power....

The way grid systems work in actuality is clearly complex with interweaving responsibilities and actions so no wonder most people don't have a clue...
 

Part and Inventory Search

Sponsor

Top