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The moving or falling water travels through a turbine, causing the turbine blades to spin.

This in turn, is used to drive a generator (in simple terms, this is a magnet that spins inside a coil of copper wire).

The rotating magnetic field produced by the spinning magnet induces an electrical current in the copper wire hence generating electricity.

Please see the related links for further information.

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Q: What makes electricity by letting falling water turn turbines and generators?
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