physical potential energy – stored energy an object has, due to its position or state

To remember the meaning of physical potential energy, use the following mnemonic:

The boulder could potentially fall onto the energy (potential energy) drinks stored below.

Potential energy is the energy stored in an object due to its position, condition, or configuration, representing the capacity to be converted into other forms of energy when released. This type of energy is called "potential" because it has the potential to be transformed into kinetic energy for example, when circumstances change. 

The most common type is gravitational potential energy, which is the energy an object possesses due to its height above the ground, like an apple falling from a tree:

Gravitational potential energy can be calculated using the formula: 

Gravitational potential energy = Mass x gravitational strength x height

Objects at higher heights have more gravitational potential energy that can be converted into kinetic energy as they fall.

Another important type is elastic potential energy, which is stored in objects that have been stretched, compressed, or deformed, such as springs, elastic bands or bow strings, and this energy is released when the object returns its original shape.