Hydropower is the most widely used renewable energy source worldwide, contributing almost with 18.5% to the fulfillment of the planet electricity generation. However, most locations in Europe appropriate for the installation of large hydro power stations have already been exploited. Furthermore, there is a significant local communities' opposition towards new large power stations; hence, small hydro power stations remain one of the most attractive opportunities for further utilization of the available hydro potential. Greece and more precisely the country*s mainland possesses a significant hydro-power potential which is up to now only partially exploited. In parallel, a large number of private investors have officially expressed their interest in creating small hydro power stations throughout the country, encouraged by the significant Greek State subsidy opportunities for renewable energy applications. However, up to now a relatively small number of projects have been realized, mainly due to decision-making problems, like the administrative bureaucracy, the absence of a rational national water resources management plan and the over-sizing of the proposed installations. Certainly, if the above problems are suitably treated, small hydro-power plants can be proved considerably profitable investments, contributing also remarkably to the national electricity balance and replacing heavy polluting lignite and imported oil. In the context of the above interesting issues, the present study reviews in detail the existing situation of small hydropower plants in Greece and investigates their future prospects as far as the energy, economic and environmental contribution are concerned. (c) 2006 Elsevier Ltd. All rights reserved.