Faults do not create energy they in fact waste it. That energy you see unleashed during a fault is the energy which is always present in the live lines. No energy is produced but a lot of energy is converted to heat during a fault, energy is wasted to make light and heat.

You cannot see the energy in an electric line before it is used to turn a motor or operate a light, but it is there and when it is unleashed inappropriately it wastes itself producing heat and light.

Be very careful with electricity, not insulting you here but you have a wrong understanding of electrical energy it seems.

Electrical energy is created by two separate but related scientific principals. The first is voltage, a difference in electrical potential between two objects. Voltage by itself is not 'power' and not actually very harmful - you can become energized, elevate your electrical charge, with little or no effect on your health and safety.

The second component is current, the voltage allows current to be conducted between different points connected by conductors or wires. No current flows until a pathway is created- such as an arc to ground or phase to phase. Current is what kills you, if I puncture your skin I can kill you with a 6 volt battery, it only takes a few milliamps across your heart to put you in fibrillation.

An uncontrolled pathway - a hard fault- conducts all the energy available at once until it melts wires or conductors, it will start metal on fire, burn anything.

A controlled pathway is an electrical circuit, you design it to release only portions of the energy and only when and where you wish the energy to be used, such as a light or motor.

Anyhow, no, faults do not produce energy, they merely unleash the energy being stored or carried in an electrical line, wasting it and causing destruction of equipment.