Defining Potential Energy
Potential energy is the stored energy an object possesses because of its position, state, or internal structure. It is energy that has the 'potential' to be converted into another form, like kinetic energy (the energy of motion), but is not currently being used.
A Clear Example of Potential Energy
Imagine a book sitting on a high shelf. The book is not moving, but it has gravitational potential energy due to its height. If the book were to fall off the shelf, that stored potential energy would be converted into kinetic energy as it moves towards the ground.