A thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. After it passes through the turbine, the steam is condensed in a condenser and recycled to where it was heated; this is known as a Rankine cycle. The greatest variation in the design of thermal power stations is due to the different fuel sources. Some prefer to use the term energy center because such facilities convert forms of heat energy into electricity. Some thermal power plants also deliver heat energy for industrial purposes, for district heating, or for desalination of water as well as delivering electrical power. A large part of human CO₂ emissions comes from fossil fueled thermal power plants; efforts to reduce these outputs are various and widespread.

Almost all coal, nuclear, geothermal, solar thermal electric, and waste incineration plants, as well as many natural gas power plants are thermal. Natural gas is frequently combusted in gas turbines as well as boilers. The waste heat from a gas turbine can be used to raise steam, in a combined cycle plant that improves overall efficiency. Power plants burning coal, fuel oil, or natural gas are often called fossil-fuel power plants. Some biomass-fueled thermal power plants have appeared also. Non-nuclear thermal power plants, particularly fossil-fueled plants, which do not use co-generation are sometimes referred to as conventional power plants.

A power station (also referred to as a generating station, power plant, or powerhouse) is an industrial facility for the generation of electric power.

At the center of nearly all power stations is a generator, a rotating machine that converts mechanical power into electrical power by creating relative motion between a magnetic field and a conductor. The energy source harnessed to turn the generator varies widely. It depends chiefly on which fuels are easily available, cheap enough and on the types of technology that the power company has access to.

Central power stations produce AC power, after a brief Battle of Currents in the 19th century demonstrated the advantages of AC distribution.

The world's first power station was built by Sigmund Schuckert in the Bavarian town of Ettal and went into operation in 1878. The station consisted of 24 dynamo electric generators which were driven by a steam engine. It was used to illuminate a grotto in the gardens of Linderhof Palace.

The first public power station was the Edison Electric Light Station, built in London at 57, Holborn Viaduct, which started operation in January 1882. This was an initiative of Thomas Edison that was organized and managed by his partner, Edward Johnson. A Babcock and Wilcox boiler powered a 125 horsepower steam engine that drove a 27 ton generator called Jumbo, after the celebrated elephant. This supplied electricity to premises in the area that could be reached through the culverts of the viaduct without digging up the road, which was the monopoly of the gas companies. The customers included the City Temple and the Old Bailey. Another important customer was the Telegraph Office of the General Post Office but this could not be reached though the culverts. Johnson arranged for the supply cable to be run overhead, via Holborn Tavern and Newgate.