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Potential energy is the energy that an object has due to its position, which it has because work has been done to put it into that position. This energy, therefore, has the "potential" to be released.
There are, therefore, different types of potential energy: for example, gravitational potential energy, which increases with increasing distance from the Earth's centre of gravity and elastic potential energy, gained by stretching or compressing an object (here the work is done against the intermolecular forces that exist within the material from which the object is made.)
Anne Evans
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