Energy can exist in multiple forms and transforms between potential and kinetic. The document discusses various types of energy like gravitational potential energy, elastic potential energy, chemical potential energy, and kinetic energy. It also covers the law of conservation of energy, which states that energy cannot be created or destroyed, only transformed from one form to another. Examples are provided to demonstrate calculating gravitational potential energy, kinetic energy, and using equations like KE=1/2mv^2 and GPE=mgh to solve problems involving energy transformations.