A good question. There are three transformations. Firstly potential energy (due to the hight of the water in the resevoir) to kinetic energy (the energy from the water falling a distance). read more
Kinetic energy of the water flowing in a river or stream is converted to potential energy by making the dam wall and storing the water at some height. In this way potential energy is stored in the water. read more
As it spins the turbines, the kinetic energy is converted into electrical energy. At your house, the electrical energy gets converted into light energy (visible and infrared) in your lights, into kinetic energy in motors like a blender, furnace blower, and other appliance motors, and into heat energy in an electric furnace, heater, toaster, and electric oven. read more