Electricity is mostly consumed many kilometers from where it is generated. Because the cables used to transmit electricity are not perfect conductors, they cause losses predominately due to their resistance. As these losses are proportional to the square of the current level (loss = I²R line), reducing the current by a factor of two results in reducing the conductor resistance loss by a factor of four. Therefore, by using higher voltages (and subsequently lower currents) over long transmission distances, the increased cost of installing higher voltage systems is offset by the benefits of lower losses over the life of the transmission system.
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