Generation

Where electricity comes from and how it's scheduled. Learn thermal, hydro, nuclear and renewable plants, efficiency and heat rate, load curves, capacity factor, merit order and economic dispatch.

A power system must produce exactly as much electricity as is being consumed, every second, at the lowest cost and within environmental limits. Generation planning and operation decide which plants exist and which ones run at any moment.

Different technologies fill different roles: baseload plants run continuously, mid-merit plants follow daily swings, peakers start in minutes for the highest demand, and variable renewables produce whenever the wind blows or the sun shines.

An analogy

Running a grid is like staffing a restaurant: a core team works every shift (baseload), extra staff come in for lunch and dinner (mid-merit), and on-call staff cover sudden rushes (peakers).

Main generation technologies

Most plants spin a turbine connected to a synchronous generator.

Load curves

Demand varies over the day and year: low overnight, peaks in the morning and evening (or midday with air-conditioning). The load duration curve sorts hourly demand from highest to lowest and shows how many hours each capacity level is needed — the basis for choosing the plant mix.

Efficiency, heat rate and capacity factor

Heat rate is fuel energy per kWh generated; efficiency = 3600/HR. Capacity factor compares actual output with running flat-out all year: nuclear ~90 %, onshore wind ~25–40 %, solar PV ~15–25 %. A 100 MW solar farm does not replace a 100 MW gas plant one-for-one.

Merit order

Plants are dispatched in order of marginal (fuel) cost — renewables and nuclear first, then efficient gas, then peakers. The last plant needed sets the wholesale price. Adding zero-marginal-cost renewables shifts the curve and lowers prices (the merit-order effect).

Economic dispatch and unit commitment

With quadratic cost curves Cᵢ(Pᵢ), total cost is minimised when every running unit operates at the same incremental cost λ (subject to limits). Unit commitment additionally decides which units start and stop over the next day, accounting for start-up costs, minimum up/down times and reserves — a mixed-integer optimisation run daily by grid operators.

Formulas

Worked example: Capacity factor of a wind farm

Given: Rating = 100 MW; Annual output = 262.8 GWh

Find: Capacity factor.

Answer: 30 %

Worked example: Coal burn of a thermal unit

Given: Output = 500 MW; Efficiency = 38 %; Coal energy = 25 MJ/kg

Find: Coal consumption per hour.

Answer: ≈ 190 tonnes of coal per hour

Common mistakes

Applications

Key takeaways

Going further