Substations are vital components of electrical power systems that facilitate the transmission and distribution of electricity while maintaining the integrity and reliability of power supply. They come in different types - step-up substations increase voltage for transmission, step-down substations decrease voltage for distribution, and distribution substations supply electricity to local areas. Substations require strategic locations near areas of high power demand, accessibility for maintenance, and adherence to environmental regulations. Key equipment includes transformers for voltage regulation, circuit breakers for controlling circuits, and switchgear for isolating equipment.