1. Hydro power plants convert the potential energy of falling water into electricity. Since there are very few water-falls which could be used as a source of potential energy, hydro power plants are associated with dams.
2. In order to produce hydel electricity, high-rise dams are constructed on the river to obstruct the flow of water and thereby collect water in larger reservoirs. The water level rises and in this process the kinetic energy of flowing water gets transformed into potential energy. The water from the high level in the dam is carried through pipes, to the turbine, at the bottom of the dam.