The Kakopetria hydroelectric plant was first operated in 1926 by Christoforos Vassiliou and used water as its source of energy. He owes his creation to the vision and initiative of local, Christos Vassiliou.

Gradually, the use of diesel engines for the production of electricity was extended to the village, which for a while operated alongside the hydroelectric power plant. In the summer months, when the water flow to the hydroelectric power station was reduced, diesel engines were used, while in the winter months electricity was generated from the hydroelectric power station.

The generation of electricity with water is a unique phenomenon for the history of electricity on the island. Nowadays, the competent authority for electricity, the Electricity Authority of Cyprus, in cooperation with the Kakopetria Community Council, is trying to save the hydroelectric power station in the area. As part of this effort, various mechanical parts of the station are repaired and replaced, with the ultimate goal of its complete restoration. Plans also include turning it into a museum.