Electric power transmission is the bulk movement of electrical energy from a generating site, such as a power plant, to an electrical substation. The interconnected lines which facilitate this movement are known as a transmission network. This is distinct from the local wiring between high-voltage substations and customers, which is typically referred to as electric power distribution. The combined transmission and distribution network is known as the “power grid” in North America, or just “the grid”. In the United Kingdom, India, Malaysia and New Zealand, the network is known as the “National Grid”.
A wide area synchronous grid, also known as an “interconnection” in North America, directly connects a large number of generators delivering AC power with the same relative frequency to a large number of consumers. For example, there are four major interconnections in North America (the Western Interconnection, the Eastern Interconnection, the Quebec Interconnection and the Electric Reliability Council of Texas (ERCOT) grid). In Europe one large grid connects most of continental Europe.
Historically, transmission and distribution lines were owned by the same company, but starting in the 1990s, many countries have liberalized the regulation of the electricity market in ways that have led to the separation of the electricity transmission business from the distribution business.