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Yeah I am beginning to see this. When I originally made my first dam it estimated a 570MW power output but then it never worked. I re-did it at a slightly different angle, so it works now, but the only thing is that I get only 160MW
Also - Someone made a couple of videos on the subject. You may be able to find them on youtube or (hahahah as if) search on these forums.
Bugged - Meaning "I cannot understand simple game mechanics". There's nothing broken about the dams. The water physics are admittedly a bit wonky, but nothing broken about it. If it was broken, we wouldn't be powering cities with dams upwards of 2400+ MW right now ingame.
Either lower the dam's height, find a more suitable location or relocate your city's drains to the high side of the dam.
Check out this guide: Hydroelectricity Crash Course.
Let me know if this helps in the guide's comment section!
I got it to work by replacing it :) Thanks!