Mechanical energy is the sum of kinetic energy (KE = ½mv²) and gravitational potential energy (PE = mgh). When friction is absent, total mechanical energy is conserved — it converts between KE and PE but never disappears.
Adding friction introduces thermal energy: total energy (KE + PE + thermal) is always conserved, but mechanical energy decreases. The skater slows down as energy transfers to heat.
Watch the energy bars: with zero friction the green Total bar stays constant at every instant — that's the proof of conservation.
Place the skater on the ramp with the Start Height slider and press play. Watch the energy bars as the skater rises and falls. Enable friction to see energy converted to thermal energy. Try the presets — energy conservation holds on the Moon and Mars too.