How the electricity supply chain works

The electricity market in Victoria was designed to transport electricity generated from coal, gas or hydro power, and distribute it to homes and businesses

The electricity market in Victoria was designed to transport electricity generated from coal, gas or hydro power, and distribute it to homes and businesses. Large-scale generators are often produce electricity a long distance from where electricity is needed. To move electricity over long distances, transmission companies use extra high voltage power lines. When the electricity is closer to where it is needed the voltage is reduced, and distribution networks deliver it to the homes and businesses that need it. Jemena is an electricity distribution network business, so we manage the poles, wires and other infrastructure needed to take the electricity from the extra high voltage transmission networks, and deliver it safely to households and businesses in our network area in Melbourne.

This energy system is often referred to as ‘the grid’ and the grid is changing. More recently, we have seen the rise of solar generation, wind farms and other renewable energy sources playing a larger role in the energy supply, and sometimes this is connected directly to distribution electricity networks. Customers are also taking an active role in these markets. Households and businesses are increasingly generating and storing their own electricity through solar panels and batteries, taking less electricity from the distribution grid. In some cases, households are also selling their excess electricity, making the way we pay for electricity, and the flow of electricity, change.