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When we raise the water, the force of Gravity pulling it down but the water not yet released is called POTENTIAL ENERGY. It has the POTENTIAL to do SOMETHING.
That's the key there! If it is in a state where it CAN do SOMETHING but is not YET, it's called POTENTIAL ENERGY
Stored Energy!
When the POTENTIAL ENERGY, the Water for example, is released downward, it becomes KINETIC ENERGY. Kinetic Energy can be converted into ELECTRICAL Energy.
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