Energy is not created or destroyed, it simply changes form. Potential energy can be converted into kinetic energy. Kinetic energy can become electrical energy (electricity), thermal energy (heat) or another form of energy.

Let's take the hydroelectricity example to see how energy continues to change form:

Water in the reservoir has potential energy.

  

Dam is released and the moving water has kinetic energy.

  

We derive electrical energy (electricity) from the moving water.

  

Electrical energy becomes thermal energy (heat) to cook your food.

  

You eat your food (chemical energy) to provide you with energy!