Where could AC power generation be centralized compared to Edison's DC system?

Answer

In areas where fuel (like coal) was cheaper or where water power was available.

Because Alternating Current (AC) transmission, facilitated by transformers, drastically minimized energy loss over long distances, the geographical tether connecting generation to consumption was broken. Unlike Edison's DC system, which mandated that power stations be placed locally due to heat loss constraints, the AC system permitted strategic placement of large power generation facilities. This allowed utilities to site plants optimally—for instance, near abundant, lower-cost fuel sources like coal fields or reliable sources of hydroelectric power (water power)—even if those locations were far removed from the city centers requiring the electricity.

Where could AC power generation be centralized compared to Edison's DC system?
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