While transmission lines are good conductors, some loss still occurs when electricity is moved through the lines. To reduce this loss, electricity is moved at high voltages on these transmission lines.
Transformers, Transmission and Distribution
Once the electricity is produced at a generator, it must be transformed to this higher voltage, which happens at a step up transformer. Step up transformers utilize alternating currents to increase voltage.
The electricity is then moved onto high-voltage transmission lines, capable of carrying electricity over long distances. Once the electricity has been moved closer to the end user, the voltage needs to be transformed to a lower voltage for safer distribution. This happens at a step down transformer. Now the electricity is ready for delivery to a distribution substation.
From the distribution substation, electricity is carried on distribution lines, which are the equivalent of residential roads in the highway analogy. From the distribution lines, electricity is stepped down one last time at a residential step down transformer before being used in homes and businesses.
These are the basics of electric generation, transmission, and distribution. Look out for more information on power markets and trading in the following weeks!
For more information on the terms in this blog post, check out the Yes Energy Glossary.
Resources we found helpful when putting together Power Markets 101 are available here.
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