Electricity

Electricity is made by converting different forms of energy. The primary fuel sources used in electricity generation include: natural gas and liquefied natural gas, nuclear power, coal, oil, water, wind, and solar. Although the general principles of electricity generation are universal, the actual design of power stations varies. A number of electricity markets have undergone substantial deregulation followed by re-regulation. The physical supply chain for electricity can be broken down into a number of different components: the production of electricity, the transport of electricity on high voltage lines, and transportation on low voltage lines. At a very high level two main electricity market structures have evolved: electricity pools and bilateral markets. The spot price for electricity is very dependent on its physical infrastructure. The main participants in the trading of electricity are utility companies, generators, suppliers, industrial consumers, and non-physical participants.