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Mastering the Commodities Markets by Francesca Taylor

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ENERGY DEFINITIONS

In addition to understanding how power and electricity is measured, e.g. watts, it is also advantageous to understand different types of energy.

Terminology

Potential energyEqual to stored energy and in hydropower this is proportional to the height above ground.
Kinetic energyEqual to the energy of motion and is proportional to the velocity.

Creating kinetic energy

  • A ball resting at the top of an incline has no motion and thus no kinetic energy.
  • With a little push, the ball rolls down the incline, picking up speed as it rolls.
  • At the bottom, the ball has its highest speed but can fall no further.
  • This is an example of converting potential energy to kinetic energy. (See Figure 6.4).

Figure 6.4 Converting potential ...

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