How is energy converted in a hydroelectric plant?

The potential energy of water is converted to electrical energy when water flows past a generator.

The potential energy of water turns the generator's turbines, which results in the production of electrical energy.

The kinetic energy of water is converted to electrical energy when water flows down the dam's channel and into the transformer.

The kinetic energy of water turns turbines; the mechanical energy of the turbines turns the generator, which produces electrical energy.