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thumb Itaipu Dam is a hydroelectric generating station

Electricity generation is the first process in the delivery of electricity to consumers. The other three processes are electric power transmission, electricity distribution and electricity retailing.

The importance of dependable electricity generation, transmission and distribution was revealed when it became apparent that electricity was useful for providing heat, light and power for human activities. Decentralised power generation became possible when it was recognised that alternating current electric power lines can transport electricity at low cost across great distances by taking advantage of the ability to transform the voltage using power transformers.

Electricity has been generated for the purpose of powering human technologies for at least 120 years from various sources of potential energy. The first power plants were run on wood, while today we rely mainly on oil, natural gas, coal, hydroelectric and nuclear power and a small amount from hydrogen, solar energySolar power describes a number of methods of harnessing energy from the light of the sun. It has been present in many traditional building methods for centuries but has become of increasing interest in developed countries as other power sources such as fo, tidal harnessesTidal power is a means of electricity generation achieved by capturing the energy contained in moving water mass due to tides. Two types of tidal energy can be extracted: kinetic energy of currents due the tides and potential energy from the difference in, and wind generators. The generation and distribution of electricity has mostly been in the hands of either privately owned or state owned public utilitiesA public utility is a company that maintains the infrastructure for a public good. Public utilities are generally regarded in some places as natural monopolies or as specially regulated sectors. In command economies, these functions are generally performe. In recent years some governments have started to privatise or corporatise these utilities as part of a move to introduce market forces to monopolies. The New Zealand Electricity Market is a typical example.

The demand for electricity can be fed in two different ways. The primary method thus far has been for public utilities to construct large scale projects to generate and transmit the electricity required to fuel growing economies. Many of these projects have unpleasant environmental effects such as air or radiation pollution and the flooding of large areas of land.

Increasingly, distributed generation is seen as a new way to supply the electrical demand close to the users. Smaller, distributed projects can:



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