Climate change mainly caused by increased greenhouse gases and reduced fossil fuel reserves, have launched a more intensive use of renewable energy on a global scale. One of the oldest types of the renewable sources is well known small hydro electric facility. In this paper description of small hydro plant location, selection of the turbine, sizing of the plant, connecting plant to the grid, as well as the legal aspect and environmental impact of the future facility in Serbia are presented and discussed. Besides, techno-economic analysis of future small hydro electric plant is presented and discussed. The main contribution of this paper is multidisciplinary approach to complex analysis of building, integration, economic performance and environmental impact of a small hydro-plant demonstrated on the specific site in Serbia. Finally, major barriers and threats for the growth of the small hydro-electric power capacity have been identified and proposals to increase the penetration level of the small hydro and other renewable sources into the grid in Serbia are made. To increase the contribution of the small hydro and other renewables in Serbia and South-East Europe countries, the gouverments should remove all the bariers and strongly encourage the investment in the renewable energy sector. (C) 2019 Elsevier Ltd. All rights reserved.