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Hydro Energy

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I was looking at the Vortex Hydro Energy project and I am confused on how the energy is stored and then transferred. Can someone explain this to me?

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Hydroelectric power generation depends upon conversion of potential energy of water into electrical energy. To increase the potential energy of water, a dam is constructed, usually at a place where a river is flowing between two mountains (see the attached figure). With hills on two sides and a dam in the way, a huge catchment area is ...

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