Electricity market in the context of "Electric utility"

An electrical grid (or electricity network) is an interconnected network for electricity delivery from producers to consumers. Electrical grids consist of power stations, electrical substations to step voltage up or down, electric power transmission to carry power over long distances, and finally electric power distribution to customers. In that last step, voltage is stepped down again to the required service voltage. Power stations are typically built close to energy sources and far from densely populated areas. Electrical grids vary in size and can cover whole countries or continents. From small to large there are microgrids, wide area synchronous grids, and super grids. The combined transmission and distribution network is part of electricity delivery, known as the power grid.

Grids are nearly always synchronous, meaning all distribution areas operate with three phase alternating current (AC) frequencies synchronized (so that voltage swings occur at almost the same time). This allows transmission of AC power throughout the area, connecting the electricity generators with consumers. Grids can enable more efficient electricity markets.

A photovoltaic power station, also known as a solar park, solar farm, or solar power plant, is a large-scale grid-connected photovoltaic power system (PV system) designed for the supply of merchant power. They are different from most building-mounted and other decentralized solar power because they supply power at the utility level, rather than to a local user or users. Utility-scale solar is sometimes used to describe this type of project.

This approach differs from concentrated solar power, the other major large-scale solar generation technology, which uses heat to drive a variety of conventional generator systems. Both approaches have their own advantages and disadvantages, but to date, for a variety of reasons, photovoltaic technology has seen much wider use. As of 2019, about 97% of utility-scale solar power capacity was PV.

A wide area synchronous grid (also called an "interconnection" in North America) is a three-phase electric power grid that has regional scale or greater that operates at a synchronized utility frequency and is electrically tied together during normal system conditions. Also known as synchronous zones, the most powerful is the Northern Chinese State Grid with 1,700 gigawatts (GW) of generation capacity, while the widest region served is that of the IPS/UPS system serving most countries of the former Soviet Union. Synchronous grids with ample capacity facilitate electricity trading across wide areas. In the CESA system in 2008, over 350,000 megawatt hours were sold per day on the European Energy Exchange (EEX).

Neighbouring interconnections with the same frequency and standards can be synchronized and directly connected to form a larger interconnection, or they may share power without synchronization via high-voltage direct current power transmission lines (DC ties), solid-state transformers or variable-frequency transformers (VFTs), which permit a controlled flow of energy while also functionally isolating the independent AC frequencies of each side. Each of the interconnects in North America is synchronized at a nominal 60 Hz, while those of Europe run at 50 Hz.