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This is How Energy is Distributed to Your Business

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We often flip a light switch without considering what it took to illuminate that light bulb.   

While we might take it for granted, there are many crucial steps required to power our lives and businesses, including energy production, power generation, transmission and distribution. 

So, how are electricity and natural gas actually distributed to your business? 

Direct Energy Business is here to help answer that question. As part of our ongoing Lightbulb Moments series, we’ve put together a new, informative video to help get you up-to-speed on electricity and natural gas distribution. 

Watch the video below to learn more.  

Check out all of our Lightbulb Moments videos here.


On a basic level, there are several different energy resources and power plants used to generate electricity. Steam-generating plants generally use biomass, coal or nuclear energy to heat water and create steam to drive a turbine. Another type of power plant – the combustion turbine – burns natural gas or oil to drive the turbine. Increasingly, wind, hydro and solar power generators are also becoming important power producers. 

After electricity is generated, it travels long distances via high-voltage transmission lines, which you often see while driving near major roads and highways. From the high-voltage transmission lines, electricity travels to a substation, which reduces the total voltage to the appropriate level for delivery to an industrial facility, business or home. 

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Natural Gas

After production, natural gas is transported from either an on-land natural gas well, storage facility, offshore drilling facility or a liquefied natural gas (LNG) tanker ship. 

From there, the natural gas is processed, treated and compressed for delivery. Often times, natural gas is transferred directly to a power plant for electricity generation, an industrial facility that uses large amounts of natural gas or into a natural gas storage facility for use at a later date. In other instances, natural gas follows a local distribution system directly to homes, businesses and compressed natural gas (CNG) fueling stations. 

Want to learn other basic energy concepts and terminology?  

Download the Energy 101 Cheat Sheet

Posted: May 30, 2017