AC is less efficient than DC at a given voltage. The advantage of AC is that voltage switching is cheap, easy and efficient. Switching DC voltage is way harder, more expensive, and less efficient. However the switching costs are O(1) and the transmission losses are O(n) so for some distance (currently somewhere around 500 km) it's worth paying the switching cost to get super high voltage DC. The big thing that's changed in the last ~30 years is a ton of research into high voltage transistors, and fast enough computers to do computer controlled mhz switching of giant high power transistors. These new super fancy switching technologies brought the switching costs down from ludicrous to annoyingly high.

The primary benefit of AC is it's really easy to change the voltage of AC up or down.

The transmission efficiency of AC comes from the fact that you can pretty trivially make a 1 megavolt AC line. The higher the voltage, the lower the current has to be to provide the same amount of power. And lower current means less power in line loss due to how electricity be.

But that really is the only advantage of AC. DC at the same voltage as AC will ultimately be more efficient, especially if it's humid or the line is underwater. Due to how electricy be, a change in the current of a line will induce a current into conductive materials. A portion of AC power is being drained simply by the fact that the current on the line is constantly alternating. DC doesn't alternate, so it doesn't ever lose power from that alternation.

Another key benefit of DC is can work to bridge grids. The thing causing a problem with grids being interconnected is entirely due to the nature of AC power. AC has a frequency and a phase. If two grids don't share a frequency (happens in the EU) or a phase (happens everywhere, particularly the grids in the US) they cannot be connected. Otherwise the power generators end up fighting each other rather than providing power to a load.

In short, AC won because it it was cheap and easy to make high voltage AC. DC is comming back because it's only somewhat recently been affordable to make similar transformations on DC from High to low and low to high voltages. DC carries further benefits that AC does not.

Important factor is that AC at given nominal voltage V swings between 1.41V and -1.41V, so it requires let's say 40% better/thicker insulation than the equivalent V volts DC line. This is OK for overhead lines (just space the wires more) but is a pain for buried or undersea transmission lines; for that reason, they tend to use DC nowadays.

BTW, megavolt DC DC converters are a sign to behold: https://en.wikipedia.org/wiki/File:Pole_2_Thyristor_Valve.jp...

> I always thought AC’s primary benefit was its transmission efficiency??

There are many factors involved, and "efficiency" is only one. Cost is the real driver, as with everything.

AC is effective when you need to step down frequently. Think transformers on poles everywhere. Stepping down AC using transformers means you can use smaller, cheaper conductors to get from high voltage transmission, lower voltage distribution and, finally lower voltage consumers. Without this, you need massive conductors and/or high voltages and all the costs that go with them.

AC is less effective, for instance, when transmitting high power over long, uninterrupted distances or feeding high density DC loads. Here, the reactive[1] power penalty of AC begins to dominate. This is a far less common problem, and so "Tesla won" is the widely held mental shortcut. Physics doesn't care, however; the DC case remains and is applied when necessary to reduce cost.

[1] https://en.wikipedia.org/wiki/Electrical_reactance