It is a mechanism for interchange of power between two and more utilities which provide or generate electricity[1] For exchange of power between two utilities there is an interchange agreement which is signed by them, but signing up an interchange agreement between each pair of utilities within a system can be a difficult task where several large utilities are interconnected.
Thus, it is more advantageous to form a power pool with a single agreement that all join.
All the tasks regarding interchange of power and the settlement of disputes are assigned to the pool administrator.
The formation of power pools provide the following potential advantages: The formation of a power pool is associated with a number of problems and constraints.
These include: Power pooling is very important for extending energy control over a large area served by multiple utilities.