Generation, transmission, distribution

Electricity moves through the grid in three stages. Generation is where electricity is produced, at power plants converting some primary energy source into electrical form. Transmission is the high-voltage network of lines that moves that electricity in bulk over long distances from generation sites toward the areas that need it. Distribution is the lower-voltage, local network that finally delivers electricity from the transmission system to individual homes and businesses. This is the single most useful mental model for understanding how the grid actually works.