In chemical notation the reaction is written: 2 H2 + O2 --------------------------------> 2 H2O
Notice that the proportion of heat and light energy after the new bonds form is greater than it was before. In other words, heat and light energy are released as the reaction is completed. On average the bonds in the Water (H-O-H) molecules are stronger than those of the Hydrogen (H-H) and Oxygen (O-O) molecules. Because the (H-O) bonds in water are stronger, they have less potential energy, therefore some of that chemical potential energy must be converted to heat and light.
Also, note that the reaction could be run in reverse, but heat and light energy must be absorbed and converted to chemical potential energy in order to break up water to form Hydrogen and Oxygen.
If we just graph the potential energy you will see a graph that looks like this:
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