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Transmission

Electricity is transported over a large network of wires and delivered to local distribution systems, which in turn deliver it onward to the customer. Electricity flows free on the network following the route of lowest resistance at the speed of light. The electricity flow thus has to be managed continuously and in real time by matching the flow on the grid to the output of the individual generation plants to prevent congestion—the job of the system operator. The transmission business consists of the maintenance of the transmission grid, carried out in coordination with the system operator, as well as the expansion and upgrade of the system. Deciding where and when to build new transmission assets is a complex process that impacts all actors on the grid. Since electricity follows the route of least resistance, new lines may change the nature of a grid and benefit one generation company more than another. This also makes recovering the cost of the transmission line through transmission pricing a difficult task.

Electricity is transported over a large network of wires and delivered to local distribution systems, which in turn deliver it onward to the customer. Electricity flows free on the network following the route of lowest resistance at the speed of light. The electricity flow thus has to be managed continuously and in real time by matching the flow on the grid to the output of the individual generation plants to prevent congestion—the job of the system operator. The transmission business consists of the maintenance of the transmission grid, carried out in coordination with the system operator, as well as the expansion and upgrade of the system. Deciding where and when to build new transmission assets is a complex process that impacts all actors on the grid. Since electricity follows the route of least resistance, new lines may change the nature of a grid and benefit one generation company more than another. This also makes recovering the cost of the transmission line through transmission pricing a difficult task.

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