Abstract The hydro energy of the gravity water flow from the coal-fired thermal power plant units to the river in an open cooling system of turbine condensers is determined. On the basis of statistical data for a long time period, the water net head duration curve due to the river annual level change, as well as the reduction of the hydro energy potential due to the thermal power plant overhauls periods, are evaluated in the case study of the Thermal Power Plant “Nikola Tesla B” in Serbia. A small hydro power plant is designed for the utilization of this hydro energy, and the economic benefits of the project are calculated. The internal rate of returns and pay back periods are calculated in dependence of the electricity price and total investment costs. The increase of profitability is assessed, bearing in mind that the plant might be realized as the Clean Development Mechanism project according to the Kyoto protocol. The obtained results show that the project is economically attractive, and it can be carried out with standard matured solutions of hydro turbines available at the market. Even for the relatively low electricity price from small hydro power plants in Serbia of 0.08 €/kW h the internal rate of return and the pay back period are 17.5% and 5.5 years.