Power pooling is a mechanism for interchange of power between two or more utilities that provide or generate electricity on the same electrical grid. The purpose of pools is to balance electrical load over a larger network (electrical grid) than a single utility. For the exchange of power between two utilities, they sign an interchange agreement, but signing an interchange agreement for each pair of utilities within a system can be difficult, especially when several large utilities are interconnected. Thus, it is more advantageous to form a power pool with a single agreement that all join. That agreement provides established terms and conditions for pool members and is generally more complex than a bilateral agreement.
In one model, the power pool, formed by the utilities, has a control dispatch office that administers the pool. All tasks related to the transfer of power and the settlement of disputes are assigned to the pool administrator.
The formation of power pools provides the following potential advantages:
The formation of a power pool is associated with several problems and constraints. These include:
Power pooling is very important for extending energy control over a large area served by multiple utilities.