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.....................................^ fuel feeder
(no electricity is produced if there is no demand)
This is probably where most people get stuck.
Performance is what capacity your combined steam engines are running at. If the bar is barely at 10% that means you are using 10% of your powerplant's capacity to produce power. You can add more stuff. If performance bar is peaked full that means you are using as much power as the powerplant can make and likely not enough, you might see some stuff showing not enough electricity.
The description is perfectly correct - steam engines can produce up to 510kW in ideal conditions, and the "available performance" bar shows how much of that theoretical 510kW the steam engine can actually produce. That's sorta what the word "available" means.
As for what is happening with power plants, it's pretty simple to look at really... Just make sure things that require fuel (Aka the boilers for steam engines) are being fed enough and making sure everything is linked up correctly via power poles. And if you want more power, just make either more steam engine lines, or just start making fields of solar panels and accumulators. The accumulators can store power for use when the solar panels turn off for the night, and will charge during the day should there be plenty of available power being generated. (Most people go pure solar panels/accumulators late game as they don't need any real maintainence aside from making sure they're wired up correctly.)
Hell, if you want to know what's happening with power, just click a power pole too. It'll tell you what on that pole's network is currently providing power and what is using up power.
http://images.akamai.steamusercontent.com/ugc/495766099603383490/4D5755B6730B1F566D86BE545B503EEEF632B8BC/
You can also use long inserters to feed into a second row of boilers like this
http://images.akamai.steamusercontent.com/ugc/495766099603398890/56E5719B2CF35ACB506801ED3531662D639F5924/
this setup does create alot of pollution but its also very efficient and can be easly upgraded with more rows for powering mega factorys (more so when you start creating solid fuel)