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Abstract. In the near future, demand for electricity is expected to increase more rapidly than demand for other forms of energy. After reviewing the tendencies of the energy market for the next century, Small and Micro-Power Systems are presented. The decision to build a hydro plant must be based on studies about the site potential, economical potential, environmental impact and technological aspects. This paper presents the literature study of the advantages and drawbacks of Small and Micro Hydro Plants. In the last years, special attention was paid to the wind and solar power. A comparison with other renewable is therefore very important.Two principal economic characteristics of hydropower are high initial and low operating costs. From studied literature an easy algorithm is proposed, in order to assure the maximum efficiency for minimum costs of a site. With minimum electrical-mechanical knowledge, the owner of the site can design a small hydro plant optimizing the total price.An economical and technical review of the essential components (civil works and mechanical and electrical equipment) of a small hydropower system is made and projected on two different sites in Flanders.