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ELECTRICAL GRID NETWORK

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Overview:

When referring to the power industry "grid" is a term used for an electricity network which may support all or some of the following four distinct operations:
1. Electricity generation
2. Electric power transmission
3. Electricity distribution
4. Electricity control
The sense of grid is as a network, and should not be taken to imply a particular physical layout, or breadth. "Grid" may be used to refer to an entire continent's electrical network, a regional transmission network or may be used to describe a sub network such as a local utility's transmission grid or distribution grid.
Electricity in a remote location might be provided by a simple distribution grid linking a central generator to homes. The traditional paradigm for moving electricity around in developed countries is more complex. Generating plants are usually located near a source of water, and away from heavily populated areas. They are usually quite large in order to take advantage of the Economies of scale. The electric power which is generated is stepped up to a higher voltage—at which it connects to the transmission network. The transmission network will move (wheel) the power long distances—often across state lines, and sometimes across international boundaries—until it reaches its wholesale customer (usually the company that owns the local distribution network). Upon arrival at the substation, the power will be stepped down in voltage—from a transmission level voltage to a distribution level voltage. As it exits the substation, it enters the distribution wiring.

Geography of transmission networks:

Transmission networks are more complex with redundant pathways. For example, see the map of the United States' (right) high-voltage transmission network. A wide area synchronous grid or "interconnection" is a group of distribution areas all operating with alternating current(AC) frequencies synchronized. This allows transmission of AC power throughout the area, connecting a large number of electricity generators and consumers and potentially enabling more efficient electricity markets and redundant generation. Interconnection maps are shown of North America (right) and Europe (below left). Electricity generation and consumption must be balanced across the entire grid, because energy is consumed almost immediately after it is produced. A large failure in one part of the grid - unless quickly compensated for - can cause current to re-route itself to flow from the remaining generators to consumers over transmission lines of insufficient capacity, causing further failures.

Deregulation:

The three components of a complete grid: generation, transmission, and distribution of electrical power, can all be found in most large utilities. A utility can be completely self-sufficient, but finds it advantageous to have the opportunity to buy and sell power to and from neighboring utilities. This improves their reliability, and that of their neighbors. Utilities are often awarded a "monopoly" status (at least at the distribution level) simply because it doesn't make sense to have competing utilities installing their hardware in the same location as another utility. The idea of a monopoly becomes less compelling as one considers the generation of electrical power. Wildly varying costs for the production of electricity, and the opportunity to encourage free market competition spurs many legislatures to move towards deregulation of the electric utilities (also known as "liberalization" in some parts of the world.) The idea of de-regulation usually involves the separation of the generation, transmission, and distribution operations into separate financial entities. Generation assets in particular can often be sold-off in piecemeal fashion to the highest bidders. With the aging infrastructure present at many utilities, and the pressure to de-regulate, there are numerous opportunities to re-engineer the system[2].