structural:scholar_edition, stylistic:tone, stylistic:style_transfer, linguistic:translation, quality:corruption
Bulk transmission

These networks use components such as power lines, cables, circuit breakers, switches and transformers. The transmission network is usually administered on a regional basis by an entity such as a regional transmission organization or transmission system operator.

Transmission efficiency is improved at higher voltage and lower current. The reduced current reduces heating losses. Joule's first law states that energy losses are proportional to the square of the current. Thus, reducing the current by a factor of two lowers the energy lost to conductor resistance by a factor of four for any given size of conductor.

The optimum size of a conductor for a given voltage and current can be estimated by Kelvin's law for conductor size, which states that size is optimal when the annual cost of energy wasted in resistance is equal to the annual capital charges of providing the conductor. At times of lower interest rates and low commodity costs, Kelvin's law indicates that thicker wires are optimal. Otherwise, thinner conductors are indicated. Since power lines are designed for long-term use, Kelvin's law is used in conjunction with long-term estimates of the price of copper and aluminum as well as interest rates.

Higher voltage is achieved in AC circuits by using a step-up transformer. High-voltage direct current (HVDC) systems require relatively costly conversion equipment that may be economically justified for particular projects such as submarine cables and longer distance high capacity point-to-point transmission. HVDC is necessary for sending energy between unsynchronized grids.

A transmission grid is a network of power stations, transmission lines, and substations. Energy is usually transmitted within a grid with three-phase AC. Single-phase AC is used only for distribution to end users since it is not usable for large polyphase induction motors. In the 19th century, two-phase transmission was used but required either four wires or three wires with unequal currents. Higher order phase systems require more than three wires, but deliver little or no benefit.

While the price of generating capacity is high, energy demand is variable, making it often cheaper to import needed power than to generate it locally. Because loads often rise and fall together across large areas, power often comes from distant sources. Because of the economic benefits of load sharing, wide area transmission grids may span countries and even continents. Interconnections between producers and consumers enables power to flow even if some links are inoperative.

The slowly varying portion of demand is known as the base load and is generally served by large facilities with constant operating costs, termed firm power. Such facilities are nuclear, coal or hydroelectric, while other energy sources such as concentrated solar thermal and geothermal power have the potential to provide firm power. Renewable energy sources, such as solar photovoltaics, wind, wave, and tidal, are, due to their intermittency, not considered to be firm. The remaining or peak power demand, is supplied by peaking power plants, which are typically smaller, faster-responding, and higher cost sources, such as combined cycle or combustion turbine plants typically fueled by natural gas.

Long-distance transmission (hundreds of kilometers) is cheap and efficient, with costs of US$0.005–0.02 per kWh, compared to annual averaged large producer costs of US$0.01–0.025 per kWh, retail rates upwards of US$0.10 per kWh, and multiples of retail for instantaneous suppliers at unpredicted high demand moments. New York often buys over 1000 MW of low-cost hydropower from Canada. Local sources (even if more expensive and infrequently used) can protect the power supply from weather and other disasters that can disconnect distant suppliers.

Hydro and wind sources cannot be moved closer to big cities, and solar costs are lowest in remote areas where local power needs are nominal. Connection costs can determine whether any particular renewable alternative is economically realistic. Costs can be prohibitive for transmission lines, but high capacity, long distance super grid transmission network costs could be recovered with modest usage fees.