Access to Sources of Energy

The location of an industry is often decided by how easily it can get the energy it needs to run. Industries that consume large amounts of power — called power-intensive industries — tend to set up very close to the source of energy itself. This is because transporting energy over long distances is expensive and leads to losses.

The aluminium industry is the classic example. Smelting aluminium requires an enormous and continuous supply of electricity. For this reason, aluminium plants are almost always located near large hydroelectric power stations or other major power plants.

The kind of energy that drives industry has changed over time. In the past, coal was the dominant source of power. Factories were built near coalfields because coal was heavy and costly to move. Today, the picture is more varied. Hydroelectricity and petroleum have become equally important sources of energy for many industries. A factory that runs on hydroelectric power, for instance, will be located near a river dam, while a petrochemical plant will be sited near an oil refinery or a pipeline. …