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It is easier to see this using a traditional roller coaster model. Most traditional Roller Coasters start by using a tow cable to pull them up a large "hill". When being pulled up this hill, mechanical energy is being used to give the roller coaster potential energy. At the top of this hill, the roller coaster has it's maximum potential energy. As it starts to go down another hill, it picks up speed. During the descent it is losing potential energy but at the same time gaining kinetic energy. The coaster will then lose kinetic energy but gain potential energy as it goes up the next hill.

This cycle of gaining/losing potential and kinetic energy is the conservation of energy that you are looking for. Of course in a real roller coaster, some energy will be lost due to friction. This will come off as heat in the rails and the wheels of the roller coaster and it's structure.

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