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Asset value of water and other renewables for electricity generation

Electricity generation is the process of generating electric power from sources of primary energy. For electric utilities in the electric power industry, it is the first stage in the delivery of electricity to end users, the other stages being transmission, distribution, energy storage and recovery, using pumped-storage methods. A characteristic of electricity is that it is not a primary energy freely present in nature in remarkable amounts and it must be produced. Production is carried out in power plants. Electricity is most often generated at a power station by electromechanical generators, primarily driven by heat engines fueled by combustion or nuclear fission but also by other means such as the kinetic energy of flowing water and wind. Other energy sources include solar photovoltaics and geothermal power.

The fundamental principles of electricity generation were discovered in the 1820s and early 1830s by British scientist Michael Faraday. His method, still used today, is for electricity to be generated by the movement of a loop of wire, or disc of copper between the poles of a magnet. Central power stations became economically practical with the development of alternating current (AC) power transmission, using power transformers to transmit power at high voltage and with low loss.

In 1870, commercial electricity production started with the coupling of the dynamo to the hydraulic turbine. In 1870, the mechanical production of electric power began the Second Industrial Revolution and created inventions using the energy, whose major contributors were Thomas Alva Edison and Nikola Tesla. Previously the only way to produce electricity was by chemical reactions or using battery cells, and the only practical use of electricity was for the telegraph.

Electricity generation at central power stations started in 1882, when a steam engine driving a dynamo at Pearl Street Station produced a DC current that powered public lighting on Pearl Street, New York. The new technology was quickly adopted by many cities around the world, which adopted their gas fueled street lights to electric power, and soon after electric lights would be used in public buildings, in businesses, and to power public transport, such as trams and trains.

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