Electricity

Generation, Distribution and Storage

Sources: The Electricity Grid Explained - A16Z The Decentralization of the Electric Grid - Ryan McEntush

• The electricity generation is the United States is composed of a series of different energy sources. Each source has its own cost to produce and its own set of circumstances and trade-offs. In order to compare these sources it is necessary to have a common framework from which to compare and contrast these sources. This common method is called the Levelized Cost of Energy (LCOE).

• Electrical energy is distributed by way of transmission lines that are all over the country. Some energy is generated and consumed in individual locations but he majority is distributed by way of the grid.

• "The Grid" is made up of three major interconnections, one for the Eastern portion of the United States, one for the Western portion and one for Texas. This is because of a difference in technical setup (phase), historic reasons (it was not built all at the same time), and regulatory reasons (it was not built with the same people in charge). The Grid is composed of a series different companies that include companies that create energy, distribute energy and sell energy to end users. The companies that generate the electricity do not necessarily own the transmission lines or do business with the end users (Retail, Commercial and Industrial customers).

• In different states, the way electricity is managed by the state governments is sometimes regulated more or less as decided by individual states for a variety of reasons. Between the states are Regional Trasmission Organizations (RTOs) and Independent System Operators (ISOs). RTOs are multi-state and ISOs and state level with more direct regulatory oversight and funding. The RTOs and ISOs "collectively ensure the grid is reliable by balancing the grid, enabling efficient markets, coordinating infrastructure."

• "Electricity is generated the moment it is consumed." The amount generated must equal the amount consumed as measured in hertz. An unbalanced grid can cause equipment to fail (brown outs, black outs, repairs needed). Spikes in demand make delivering electrity consistently and reliably is a adunting chanllenge.

• The location that power is generated and stored is changing because of the unique circumstances of certain sources of electricity. Solar and wind or great sources of electrity but are intermittent sources (the Duck Curve). Energy storage becomes essential to solve this problem.

Electricity Sources • Biomass • Coal • Diesel • Heat Recovery • Hydroelectric • Natural Gas • Nuclear • Geothermal • Solar • Wave Powered • Wind