Let us start with your statement " the energy received from the tank will be increased by a tep up transformer tc. " is the first mistake. a transformer steps up or down voltage, not energy. as the voltage goes up, the current goes down. P (power) = ei. the power remains the same. minus hysterisis loss. the second mistake is obvious. the law of conservation of energy states that " energy can neither be created nor destroyed, it can only be transformed from one form to another" the stored water is potential energy, falls down and become kinetic energy, turns the generator and become electrical energy., runs a pump , converting the electrical energy back to potential energy. each stage has a less than unity conversion efficiency due to friction loss.

hate to burst your bubble. you can make this work only in the realm of make belief.