Energy is produced by various sources such as fossil fuels, nuclear, hydro, wind, and solar. The amount of energy generated must match the demand to maintain grid stability.
Wholesale Market: hhh
Electricity producers sell their energy in a wholesale market. Prices here can fluctuate based on supply and demand dynamics. Large consumers, like utilities or industrial companies, often buy electricity at this level.
Transmission and Distribution:
The electricity is then transmitted over long distances via high-voltage lines and distributed to consumers through local networks.
Retail Market:
In the retail market, electricity is sold to end-users, including households and businesses. Retailers purchase electricity from the wholesale market and sell it to consumers, often with added costs for distribution, customer service, and billing.
Regulatory Framework:
The energy market operates under a regulatory framework that aims to ensure fair pricing, reliability of supply, and environmental protection. This framework can include caps on prices, subsidies for renewable energy, or carbon emission trading schemes.