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How is energy transformed in windmills?

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Answer:

Essentially what happens is that as the energy from the
wind rotates the vanes of the mill, coils of wire rotate
inside a permanent magnet (generator) and produce electric
voltage/current. This current is then sent onto the grid
and used by us as electricity another form of energy. This
is a very simple explanation and there is a lot more in the
design of the system.

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