Lots of electrical production is more than 2nd generation - a typical coal fired plant uses chemical energy to produce heat, uses the heat to generate kinetic energy in the form of steam, that kinetic energy transfers to spin a turbine, and that spin produces electricity. 2nd Law of Thermodynamics guarantees that every time you transform energy, there is some degree of loss.
@Zingam - with you on fusion, but the problem is going to be getting net energy gains out of a fusion reaction. It takes so much energy to initiate and contain the reaction that breaking even may be really tricky. Stars do a great job with this, but I don't want one in my backyard... ;-)