Does an electric company have to buy electricity that is produced?

Answer 1

If it produces its own electricity, then no. If it doesn't have its own power plant, then it has to buy power from someone who does. Sometimes, if power demands are high enough so as to max out a power company's power plant, then the company will have to buy power from another source. This is what happened during the California black outs of the early 2000s. Power companies on the Western Power Grid had to buy power from the Texas Power Grid.

Answer 2

Most electric companies produce their electricity in centralized locations, which are commonly referred to as power plants. These power plants can run off a variety of fuels: from coal to Uranium. However, in the United States, the most common fuel used is coal due to its low cost and because it is plentiful. Also, by government mandate fifteen percent of each state's electricity will have to come from a renewable source such as wind, solar, or hydroelectric power by 2025.

When creating electricity from most non-renewable fuels, the process is pretty much the same. The fuel is carried into a furnace where it fuels a huge fire, which, in turn, vaporizes the water that runs through overhead radiator pipes. This high pressure steam is then used to turn enormous turbines, which turn electric generators, which create electricity.

When obtaining power from the wind, wind is used instead of steam to turn the turbines. In hydroelectric plants high pressure water is used to turn the turbines, and in photovoltaic solar production, the solid-state panels directly convert photons from the sun into electricity via crystalline silicon.