AC Production
The production of AC electricity primarily occurs in power plants. Most turbine-based power generating systems produce AC power, according to MSNBC. This allows the plants to directly add such power to the electrical grid. Many types of power plants utilize turbine systems, although they use different means to generate the force needed to turn the turbines. Despite some loss of energy in the conversion process, it's also possible to convert DC electricity into AC. However, a low DC voltage can only power AC equipment with relatively minimal demands.
AC Distribution
Power plants send high-voltage AC power to the electrical grid for distribution to homes and other buildings. The electricity passes through many power lines before reaching its destination, sometimes using underground wires. AC current loses less power when traveling fewer miles, while DC retains more electricity when moving long distances. Household wiring distributes AC power throughout buildings at reduced voltages suitable for electronics and appliances, such as 110 and 220V.
DC Production
A well-known source of DC electricity is the battery; batteries generate DC power when installed in electronic devices. Car batteries supply it through lights and cigarette lighters in automobiles. Many electronics convert AC power into DC for internal use, such as computers, radios and battery chargers. Some devices actively generate new DC electricity. Solar panels create DC power, the Energy Information Administration reports. It must be transformed into AC power before entering the electrical grid. Some people also use dynamo hand cranks for small-scale DC energy production.
DC Distribution
Although it's possible to send DC electricity long distances through power lines, the vast majority of DC power distribution occurs through the sale of batteries by stores and other retailers. Some DC electricity directly travels to its destination through short electrical wires after production in a small solar panel or dynamo crank. Power supplies inside computers and many other electronics accomplish the distribution of internal DC power (converted from AC) by sending it through color-coded wires to various low-voltage components.