How electricity is produced from a dam. Hydroelectric power is produced as water passes through a dam, and into a river below. The more water that passes through a dam, the more energy is produced. Once a dam is built, an artificial man-made lake is created behind the dam. Electricity is produced by a device called a turbine. Turbines contain metal coils surrounded by magnets. When the magnets spin over the metal coils, electricity is produced. Turbines are located inside dams. The falling water