Reduce Cost of Transmission
For transmitting electric power at 11,000 W at 220 V the current capacity of line wires has to be 50 A and if the transmission is done at 22,000 V, it is only 0.5 A. Thus, for carrying larger current (50A) thick wires have to be used. This increases the cost of transmission. To support these thick wires, stronger poles have to be erected which further adds on to the cost. On the other hand, if the transmission is done at high voltages, the wires required are of lower current carrying capacity. So thicker wires can be replaced by thin wires, thus reducing the cost of transmission considerably.
For example, 400MW power produced at 15,000 V in the power station at Neyveli, is stepped up by a step-up transformer to 230,000 V before transmission. The power is then transmitted through the transmission lines which forms a part of the grid. The grid connects different parts of the country. Outside the city, the power is stepped down to 110,000 V by a step-down transformer. Again the power is stepped down to 11,000 V by a transformer. Before distribution to the user, the power is stepped down to 230 V or 440 V depending upon the need of the user.