An electric power system is a network of electrical components deployed to supply, transfer, and use electric power. An example of a power system is the electrical grid that provides power to homes and industry within an extended area. The electrical grid can be broadly divided into the generators that supply the power, the transmission system that carries the power from the generating centers to the load centers, and the distribution system that feeds the power to nearby homes and industries. Smaller power systems are also found in industry, hospitals, commercial buildings and homes. The majority of these systems rely upon three-phase AC power—the standard for large-scale power transmission and distribution across the modern world. Specialized power systems that do not always rely upon three-phase AC power are found in aircraft, electric rail systems, ocean liners, submarines and automobiles.

Electric power is the product of two quantities: current and voltage. These two quantities can vary with respect to time (AC power) or can be kept at constant levels (DC power).

Most refrigerators, air conditioners, pumps and industrial machinery use AC power whereas most computers and digital equipment use DC power (digital devices plugged into the mains typically have an internal or external power adapter to convert from AC to DC power). AC power has the advantage of being easy to transform between voltages and is able to be generated and utilised by brushless machinery. DC power remains the only practical choice in digital systems and can be more economical to transmit over long distances at very high voltages (see HVDC).

The ability to easily transform the voltage of AC power is important for two reasons: Firstly, power can be transmitted over long distances with less loss at higher voltages. So in power systems where generation is distant from the load, it is desirable to step-up (increase) the voltage of power at the generation point & then step-down (decrease) the voltage near the load. Secondly, it is often more economical to install turbines that produce more voltages than would be used by most appliances, so the ability to easily transform voltages means this mismatch between voltages can be easily managed

ll power systems have one or more sources of power. For some power systems, the source of power is external to the system but for others, it is part of the system itself—it is these internal power sources that are discussed in the remainder of this section. Direct current power can be supplied by batteries, fuel cells or photovoltaic cells. Alternating current power is typically supplied by a rotor that spins in a magnetic field in a device known as a turbo generator. There have been a wide range of techniques used to spin a turbine's rotor, from steam heated using fossil fuel (including coal, gas and oil) or nuclear energy to falling water (hydroelectric power) and wind (wind power).

The speed at which the rotor spins in combination with the number of generator poles determines the frequency of the alternating current produced by the generator. All generators on a single synchronous system, for example, the national grid, rotate at sub-multiples of the same speed and so generate electric current at the same frequency. If the load on the system increases, the generators will require more torque to spin at that speed and, in a steam power station, more steam must be supplied to the turbines driving them. Thus the steam used and the fuel expended directly relate to the quantity of electrical energy supplied. An exception exists for generators incorporating power electronics such as gear less wind turbines or linked to a grid through an asynchronous tie such as a HVDC link — these can operate at frequencies independent of the power system frequency.

Depending on how the poles are fed, alternating current generators can produce a variable number of phases of power. A higher number of phases leads to more efficient power system operation but also increases the infrastructure requirements of the system. Electricity grid systems connect multiple generators operating at the same frequency: the most common being three-phase at 50 or 60 Hz.