In this guide to understanding electricity as a commodity, we discuss why electricity is valuable. We also explore a brief history of electricity and how it is produced.
By the time you finish reading this guide, you’ll have an idea of ways electricity is generated, the main uses of electricity, and what experts think about the future of electricity as a commodity.
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What Are The Main Uses Of Electricity?
Electricity has many uses cases, though the following four cover the core use cases:
| Uses | Description |
|---|---|
Residential | The residential sector consumed about 38% of annual US electricity demand. Space cooling (air conditioning) was the largest contributor to residential usage followed by water heating, lighting, space heating, refrigeration, and televisions and related electronic equipment. Clothes washers and dryers, computers and related equipment, dishwashers, small appliances, and other electrical equipment combine to use 40% of total US residential-sector electricity. |
Commercial | The commercial sector consumed about 37% of annual US electricity demand. Refrigeration accounts for the largest component of demand in this sector followed by computers and office equipment, space cooling, ventilation and lighting. |
Industrial | The industrial sector consumed about 25% of annual US electricity demand. Machines account for about half of this demand, while process and boiler heating comprise the next biggest category. |
Transportation | Transportation accounts for only about 0.2% of US electricity demand. Most of this use is by public transit systems. |
Data last reviewed:
What Makes Electricity Valuable?
Electricity is the result of a reaction that produces the flow of electrical power or charge.
It is both a naturally occurring phenomenon and one of the most prolific forms of energy used around the world.
People have been aware of electricity for thousands of years. Ancient societies marveled at electric fish and noticed static electricity when they rubbed certain objects.
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