The Betz limit, which applies to wind turbines, does not directly apply to hydro turbines due to their different operational principles. Hydro turbines utilize gravitational potential energy from falling water, allowing them to achieve efficiencies exceeding 85%, unlike the 60% limit for wind turbines. The discussion highlights that certain systems, like those with a significant elevation drop or specialized designs such as venturi systems, can exceed traditional efficiency expectations. The Ludington Pumped Storage Power Plant exemplifies high efficiency in hydro systems, achieving around 80% round trip efficiency. Overall, hydro turbines operate under different physical principles, allowing for greater energy conversion efficiencies.