, New York, 1895 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
Faraday disc, 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. Commercial electricity production started with the coupling of the dynamo to the hydraulic turbine. The mechanical production of electric power began the
Second Industrial Revolution and made possible several inventions using electricity, with the major contributors being
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 adapted their gas-fueled street lights to electric power. Electric lights were soon used in public buildings, in businesses, and to power public transport, such as trams and trains. The first power plants used water power or coal. Today a variety of energy sources are used, such as coal, nuclear, natural gas, hydroelectric, wind, and oil, as well as solar energy,
tidal power, and
geothermal sources. In the 1880s the popularity of electricity grew massively with the introduction of the
Incandescent light bulb. Although there are 22 recognised inventors of the light bulb prior to
Joseph Swan and
Thomas Edison, Edison and Swan's invention became by far the most successful and popular of all. During the early years of the 19th century, massive jumps in
electrical sciences were made. And by the later 19th century the advancement of electrical technology and engineering led to electricity being part of everyday life. With the introduction of many electrical inventions and their implementation into everyday life, the demand for electricity within homes grew dramatically. With this increase in demand, the potential for profit was seen by many entrepreneurs who began investing into electrical systems to eventually create the first electricity public utilities. This process in history is often described as electrification. The earliest distribution of electricity came from companies operating independently of one another. A consumer would purchase electricity from a producer, and the producer would distribute it through their own power grid. As technology improved so did the productivity and efficiency of its generation. Inventions such as the
steam turbine had a massive impact on the efficiency of electrical generation but also the economics of generation as well. This conversion of heat energy into mechanical work was similar to that of
steam engines, however at a significantly larger scale and far more productively. The improvements of these large-scale generation plants were critical to the process of centralised generation as they would become vital to the entire power system that we now use today. Throughout the middle of the 20th century many utilities began merging their
distribution networks due to economic and efficiency benefits. Along with the invention of long-distance
power transmission, the coordination of power plants began to form. This system was then secured by regional system operators to ensure stability and reliability. The electrification of homes began in Northern Europe and in the Northern America in the 1920s in large cities and urban areas. It was not until the 1930s that rural areas saw the large-scale establishment of electrification. == Methods of generation ==