We can define energy as the ability to do work; energy is used to make movements. Water has energy embedded within it. The water has kinetic energy which is used for all its movements for running down the stream. The water that is not in motion or the stored water has potential energy. This energy is not used by the water directly. This potential energy is converted into kinetic energy and this gets converted into mechanical energy which in turn gets converted to electrical energy.
As we all know energy cannot be created it is just the transformation of one form to another, so the stored potential energy is used to produce electricity. This is the major process that happens in all hydroelectric power stations.
Water is the main driving force in the thermal power stations. In thermal power stations water is heated up into steam and the steam is used to run the turbines to generate power.
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