Remember that thermal energy is the total energy of particles in matter and kinetic energy is the energy created due to motion.
Also, particles in matter have only two types of energy and they are kinetic and potential energy.
Electrical energy is the energy of electrical charges.
Now, of course, the lightbulb will only create a few sparks and these few sparks will not last for long because the balloon doesn't have as much energy as a cable that lights up the bulb but it's still an energy transformation.
Light energy is a type of electromagnetic energy therefore it travels in waves. We can see the light but we cannot see the waves.
Rubbing the balloon on my friend's hair is causing the particles of the balloon to move quicker than usual which is creating heat. This heat is what is producing a form of energy called thermal energy. Also because the balloon is moving kinetic energy has been created.
The particles of the balloon are now full of energy so when we let the balloon touch the light bulb the thermal energy and kinetic energy from the balloon will get transformed into the form of electrical energy which will light up the bulb.
Now after the balloon has transformed electrical energy to the lightbulb, the lightbulb transfers light energy to us. This energy is the only form of energy that is visible for us humans.
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