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Unit -1

1. Define Wheeling.

Wheeling is the transmission of power from a seller to a buyer through a

third party network. It may be defined as, “ the use of transmission or
distribution facilities of a system to transmit power between source and load
entities. It is classified as bilateral and multilateral transactions.

2. What is Power pool ?

A Power pool is a situation where output from different power plants

are pooled together Scheduled according to increasing marginal cost,
technical and contractual characteristics and dispatched according to this
merit order to meet demand. The role of ISO is mandatory in this entity.

3. What is Market power ?

Market power refers to the ability of a firm to raise and maintain price
above the level that would prevail under competition is referred to as market
or monopoly power. The exercise of market power leads to reduce output
and loss of economic welfare.

4. Classify Power market .

• Future power market

• Day ahead power market
• Spot market
5. What is the Role of ISO ?

➢ Maintaining system security

➢ Load forecasting
➢ Matching of power balance between Generators and Load
➢ To compute Wheeling charges

6. Write the role of Power Exchange ?

The main goal of the power exchange is to facilitate the trade of

electricity by promoting competition and give necessary information to the
market participants such as power producers and customers. In general, the
pricing of electricity in the power exchanges has been associated with Zonal

7. What is Spot market ?

Spot market provides short term horizons for trading electricity in the
particular day. This market closes few hours before the actual physical delivery of
the electricity.
8. What is meant by unbundling

The integrated utility system is divided into generator, transmission

and distribution entities to encourage competition and trade the power.

9. List the components of ISO .

• Power Exchange
• Ancillary Services
• System Operator