Electricity is made by moving magnets around a loop of wire, a process called ‘magnetic induction’. This generates an electric current in the wire which is then pushed out through high voltage transformers. These transformers then allow the generated current to be transmitted over vast distances on pylons to local substations. These substations then convert the high voltages into lower, domestic voltage such as 240V that you have in your house.
This is the principal behind all forms of electricity generation. The magnets can be moved in different ways by using different sources of energy to drive the turbines, e.g. coal, gas, nuclear, wind, wave and solar. Most of these methods use the energy sources to heat water and generate steam to turn the turbines.