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Industries · Energy and resources

Power, utilities and renewables

How electricity is made, moved and sold; why the cheapest new power is often solar or wind; what levelized cost and capacity factor mean; how grids, regulation and storage work; and how power markets differ in Europe, the Gulf, India and Africa.

39 min3 lessons Facts checked against sources on
Start lesson 1 How the power system works, and who makes money in it

Key takeaways

  • Electricity must be produced at the same moment it is used, because it is hard to store.
  • A solar or wind plant spends almost all its money before it produces anything, and then its fuel is free.
  • Power cases usually ask whether to build something (a plant, a battery, a line), how to fix a loss-making utility, or how to reach a clean energy target.
By the end you will be able to
  • Explain generation, transmission, distribution and retail, and who earns money at each step
  • Calculate capacity factor, a simple levelized cost of electricity and a battery storage margin
  • Explain the merit order and why solar and wind lower wholesale prices at some hours
  • Describe the main market models in Europe, the Gulf, India and Africa
  • Crack typical power and renewables cases, starting with the right driver