AC transmission and Distribution grids, mini-grids and interconnectors

Energy flows from AC transmission to distribution grids, mini-grids and interconnectors; their prices have moved together.

AC transmission (energy) and Distribution grids, mini-grids and interconnectors (energy): 2 relationships.

How they are linked

1. Energy flow

Physical flow · 90% of flow · AC transmission → Distribution grids, mini-grids and interconnectors

Substations pass bulk power to regional distribution networks.

• 90% of AC transmission's energy goes this way

2. Price link: shared equipment

Cost and price · Strong · Both ways

Distribution transformers and switchgear come from the same factories as transmission equipment. Monthly moves barely correlate, at 0.11, but yearly moves at 0.69, with the transformer index leading the switchgear index by about three months.

• 0.11 monthly change correlation
• 0.69 12-month change correlation
• 0.79 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.