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I have heard that the formula which states the reason of using high voltage in mains instead of using high current is P = I^2 x R.
Can you tell me why and how that formula states so?
Is this formula states that too: P = V^2/R?
Power transfered through a wire is P= I x V, thus the higher the line voltage the lower the line current for a given power transfer. Since the I²R loss in the line resistance is proportional to line current, then the line loss decreases with increasing voltage for a given power through the line.