Statement 1: Dams are constructed to produce hydro electricity.
Statement 2: Dam obstruct 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 correct explanation of statement 1.
Dams hold water in reservoirs which can be used to produce hydroelectricity. The water held back by dams are allowed to flow through a turbine to produce electric energy.
Electricity produced from hydropower plants is also known as hydel electricity.