Wheeling system

The Wheeling system is a method used in electricity markets that allows power to be transmitted across different regions or grids via external networks, without owning the physical transmission infrastructure. It involves arrangements where a power producer or consumer pays another operator for the use of transmission lines to deliver electricity from generation points to consumption areas. This setup enables more efficient and cost-effective electricity flow, promoting competition and market integration. Essentially, it facilitates the transfer of electrical power across regions in a regulated, transparent manner, helping meet demand efficiently and fairly.