Hydropower takes the priority of Slovak interests in the field of exploitation of renewable energy sources. In the light of this issue, this diploma thesis deals with an investment project on micro-hydropower plant. This diploma thesis analyses and evaluates economic efficiency of hydropower utilization illustrating it by concrete example of a planned construction of small-hydropower plant. Economic analysis indicates that the funding of small-hydropower projects shall be of high importance. The diploma thesis emphasizes two basic means of small-hydropower plant funding, and thus financing through private capital and foreign capital. Each capital variant gives three options considering different disconts. With reference to contradictory decisions on purchase price for electricity made by Regulatory Office for Network Industries in 2017, we have compared economic efficiency of investment project in twelve variants.Summarizing the indicators given in this paper we have assessed the planned project from economic point of view.In the second place, this paper gives an analysis of legislation and potential barriers to further utilization of hydropower for energetic purposes.Economic analysis has shown that in conditions of current guaranteed purchase prices it is worth funding the micro-hydropower projects through private and foreign capital investments.Issue of further hydropower utilization will be affected by legislation, by the fact how we will be able to overcome other barriers and mainly, it will depend on economic efficiency of projects depended on approved purchase prices.