Why is it called an Electrical Grid?

In our modern world, electricity has become an indispensable part of our daily lives. We depend on it for lighting our homes, powering our appliances, fueling industries, and driving technological advancements. Behind this seamless supply of electricity lies a complex and intricate system known as the electrical grid. This article aims to delve into the depths of what the term “grid” means in the context of electricity, its components, functions, challenges, and the crucial role it plays in shaping our modern society.

What is an Electrical Grid?

The electrical grid, often referred to as the power grid, is a network of interconnected power generation, transmission, and distribution systems that work collaboratively to deliver electricity from power plants to consumers. It is a marvel of engineering, comprising a combination of physical infrastructure, advanced technologies, and regulatory frameworks. At its core, the grid enables the movement of electricity over vast distances, transforming it from high-voltage power at generation points to lower voltages suitable for consumption.

An electrical grid links electricity producers and users, varying in scale from local to national or continental. Synchronization in most grids maintains uniform three-phase alternating current (AC) frequencies, causing simultaneous voltage fluctuations. This synchronized system enables widespread AC power transmission, connecting producers and users across regions, supporting efficient electricity markets and backup power generation.

The interconnected system responsible for transmitting and distributing electricity is referred to as the “power grid” in North America, or simply “the grid.” In countries like the United Kingdom, India, Tanzania, Myanmar, Malaysia, and New Zealand, this network is recognized as the National Grid.

Despite the widespread presence of electrical grids, as of 2016, approximately 1.4 billion individuals globally lacked access to an electricity grid. With the expansion of electrification efforts, the count of people enjoying grid-connected electricity is on the rise. In 2017, around 840 million people, primarily in Africa, remained without access to grid electricity, a decline from 1.2 billion in 2010.

The vulnerability of electrical grids to malicious intrusion or attacks is a matter of concern, necessitating a focus on electric grid security. Moreover, with the modernization and integration of computer technology into electric grids, the emergence of cyber threats has introduced a security challenge. Especially noteworthy are concerns associated with the intricate computer systems required for grid management.

Components of the Electrical Grid

Power Generation: 

The production of electrical power, known as electricity generation, involves converting primary energy sources, usually located at power stations, into electric power. This conversion is commonly achieved through electromechanical generators powered by heat engines or the motion of water or wind. Alternative energy sources such as solar photovoltaics and geothermal power are also utilized.

The total power output from generators connected to the grid constitutes the grid’s overall production, typically quantified in gigawatts (GW).


Electric power transmission involves the large-scale transfer of electrical energy from a power generation site through a network of interconnected lines to an electrical substation. This substation, in turn, links to the distribution system. This interconnected system of transmission is separate from the local wiring that runs between high-voltage substations and individual customers.

Due to the common situation where power generation occurs far away from consumption, the transmission system often spans considerable distances. To enhance efficiency during transmission, higher voltages and lower currents are employed. As a result, voltage levels are increased at the generating station and decreased at local substations before the power is distributed to customers.

The majority of transmission systems use a three-phase configuration. Three-phase transmission, in comparison to single-phase transmission, can carry significantly higher power using the same amount of wiring, as the neutral and ground wires are shared. Moreover, three-phase generators and motors are more efficient compared to their single-phase counterparts.

Nevertheless, in traditional conductors, one of the primary losses is resistive loss, which follows a square law based on current and is influenced by distance. High-voltage AC transmission lines can experience losses of around 1-4% per hundred miles. Yet, high-voltage direct current (DC) can exhibit half the losses of AC. For extremely long distances, these efficiencies can counterbalance the extra expenses associated with the required AC/DC converter stations at both ends.

High-voltage transmission systems exhibit a network structure with multiple redundant pathways. The physical arrangement is often determined by available land and geological conditions. Most transmission grids ensure reliability similar to more intricate mesh networks. This redundancy permits power to be rerouted in case of line failures, enabling repairs to be conducted without disrupting the power supply.


Substations are capable of carrying out a variety of tasks, but their common roles usually involve altering voltage levels – either elevating from low to high (stepping up) or reducing from high to low (stepping down). In the journey from the generator to the ultimate consumer, voltage adjustments may occur multiple times.

The three primary categories of substations based on their functions are:

1. Step-up substations: These utilize transformers to elevate the voltage sourced from generators and power plants. This enhancement enables more efficient long-distance transmission of power with reduced currents.

2. Step-down substations: These substations employ transformers to decrease the voltage arriving from transmission lines. The resultant lower voltage can be utilized in industrial settings or directed to a distribution substation.

3. Distribution substations: These substations undertake the task of lowering the voltage once again, making it suitable for distribution to end users.

Beyond transformers, substations consist of other significant components or perform various functions, including:

1. Circuit breakers: These are employed to automatically interrupt a circuit and isolate faults within the system.

2. Switches: Used to regulate the flow of electricity and isolate equipment.

3. The substation busbar: Typically comprising three conductors, one for each current phase. The arrangement of the substation revolves around these buses, connecting them to incoming lines, transformers, protective devices, switches, and outgoing lines.

4. Lightning arresters: These devices are utilized to safeguard against voltage surges caused by lightning.

5. Capacitors for power factor correction: Capacitors are employed to rectify the power factor, enhancing the efficiency of the system.

6. Synchronous condensers for power factor correction and grid stability: Synchronous condensers are used to improve the power factor and ensure stability within the grid.


Distribution marks the final phase in the power delivery process, transporting electricity from the transmission system to individual consumers. Substations interface with the transmission system and reduce the transmission voltage to medium voltage, typically ranging from 2 kV to 35 kV. Medium voltage power is then transmitted through primary distribution lines to distribution transformers positioned close to the customer’s location. These transformers further decrease the voltage to the usable level. In cases where customers require a substantial power supply, they might be directly connected to the primary distribution or subtransmission level.

Distribution networks are classified into two main types: radial and network configurations.

In North American cities and towns, the grid often adheres to the conventional radially fed design. A substation obtains power from the transmission network, which is stepped down through a transformer and conveyed to a central point. From this point, feeders extend in various directions, following major streets near the substation. These feeders distribute three-phase power. As the distance from the substation increases, smaller lateral lines branch out to cover areas not reached by the feeders. This arrangement, resembling a tree, expands outward from the substation. For the sake of reliability, it usually incorporates an unused backup connection to a nearby substation. This connection can be activated during emergencies, enabling a section of the substation’s service area to be supplied by an alternative substation.


Grid energy storage, also referred to as large-scale energy storage, encompasses a range of techniques employed to store significant amounts of energy within an electrical power grid. This storage process involves capturing electrical energy during periods of abundant and cost-effective electricity supply, particularly when sourced from intermittent sources like wind, tides, and solar power. Additionally, energy can be stored during periods of low demand. This stored energy is then released back into the grid when demand surges, often corresponding to higher electricity prices.

As of the year 2020, the most prominent type of grid energy storage is hydroelectricity generated from dammed reservoirs. This includes both conventional hydroelectric generation and pumped storage hydroelectricity.

Advancements in battery storage have enabled economically viable initiatives aimed at storing energy during peak production and releasing it during peak demand. These batteries can also serve as a buffer when production unexpectedly drops, allowing slower responding resources to be activated.

Two alternatives to grid energy storage include utilizing peaking power plants to address supply gaps and implementing demand response strategies to shift electricity consumption to different time periods.


The electrical grid is the backbone of our modern society, enabling the reliable and efficient distribution of electricity to power our homes, industries, and innovations. It is a dynamic system that continuously evolves to meet the challenges of increasing demand, changing energy sources, and emerging technologies. Understanding the significance of the electrical grid is essential for policymakers, engineers, and the general public alike as we work towards a more sustainable and electrified future. By investing in its modernization, resilience, and adaptability, we can ensure that the grid continues to serve as the cornerstone of our energy infrastructure for generations to come.