A generator (and motor) has two main parts. A ring with copper wire wrapped around it called a stator and part that can spin in the middle of the ring called a rotor.
The wind or water spins a turbine. The turbine is connected the rotor so causes it to spin.
The rotor design can vary but for what is called a synchronous generator they also have a loop or winding of copper wire and this wire is connected to a DC source so has DC current in it.
When the wind or water turns the turbine, and thus the rotor, induction happens. I explain that here. It applies to generators because motors and generators are essentially the same type of machine but operating from opposite ends.
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