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The electricity value chain describes the sequence of activities required to produce and deliver electricity from power plants to consumers.
It explains how electricity moves through the energy system and identifies the key roles played by different participants.
In Ontario, the value chain includes several interconnected stages:
Each stage of the value chain involves different infrastructure, organizations, and regulatory frameworks.
⚡ Electricity moves through a sequence of stages before reaching customers.
Electricity is generated at power plants, transported across high-voltage transmission lines, delivered through local distribution networks, and ultimately consumed by homes, businesses, and industries.
Electricity Value Chain
The electricity value chain refers to the sequence of activities and infrastructure involved in producing, transporting, delivering, and consuming electricity.
Ontario’s electricity system can be understood as four main stages.
Electricity is produced at power plants using different energy sources.
Examples include:
Generation facilities convert energy into electricity that enters the grid.
Related topic:
Generation Types
After electricity is generated, it must travel long distances across the province.
This is accomplished using high-voltage transmission lines, which transport electricity efficiently between regions.
Transmission infrastructure includes:
Transmission networks connect generating facilities with major demand centres.
Related topic:
Transmission System
Electricity is delivered to homes and businesses through local distribution networks.
Distribution systems are operated by Local Distribution Companies (LDCs).
Distribution infrastructure includes:
These systems step down voltage and deliver electricity to individual customers.
Related topic:
Distribution System
The final stage of the value chain is electricity consumption.
Electricity is used by:
Demand from consumers drives the need for electricity generation and system operations.
Consider electricity being delivered to a manufacturing facility.
This sequence represents the complete electricity value chain from generation to consumption.
➡ Next Topic:
Supply and Demand
This topic explains how electricity demand varies over time and how the electricity system must continuously balance supply and demand.
Last Updated: 2026-03-26