Statement 1: Dams are constructed to produce hydel electricity.
Statement 2: Dam obstructs the flow of water and water level rises thereby increasing the potential energy which is further converted to kinetic and then to electric energy.
Statement 1 and statement 2 are correct, statement 2 is the reason for statement 1.
Dams convert the kinetic energy of the flowing water into potential energy and that potential energy is converted into the electric energy.Hence, dams are used to produce hydel energy.