Electrical power is usually generated by electro-mechanical generators driven by steam produced from fossil fuel combustion, or the heat released from nuclear reactions. It can also be generated from other sources such as kinetic energy extracted from wind or flowing water. The modern steam turbine invented by Sir Charles Parsons in 1884 today generates about 80 percent of the electric power in the world using a variety of heat sources.
The invention in the late nineteenth century of the transformer meant that electrical power could be transmitted more efficiently at a higher voltage but lower current. Efficient electrical transmission meant in turn that electricity could be generated at centralized power stations, where it benefited from economies of scale, and then be dispatched relatively long distances to where it was needed.
(Information from wikipedia)