There are four generating methods on hydroelectricity to generates power.


Most hydroelectric power comes from the potential energy of dammed water driving a water turbine and generator. The power extracted from the water depends on the volume and on the difference in height between the source and the water's outflow. This height difference is called the head. The amount of potential energy in water is proportional to the head. To deliver water to a turbine while maintaining pressure arising from the head, a large pipe called a penstock may be used.


This method produces electricity to supply high peak demands by moving water between reservoirs at different elevations. At times of low electrical demand, excess generation capacity is used to pump water into the higher reservoir. When there is higher demand, water is released back into the lower reservoir through a turbine. Pumped-storage schemes currently provide the most commercially important means of large-scale grid energy storage and improve the daily capacity factor of the generation system.


Run-of-the-river hydroelectric stations are those with smaller reservoir capacities, thus making it impossible to store water.


A tidal power plant makes use of the daily rise and fall of water due to tides; such sources are highly predictable, and if conditions permit construction of reservoirs, can also be dispatchable to generate power during high demand periods. Less common types of hydro schemes use water's kinetic energy or undammed sources such as undershot waterwheels.