The topic of this scientific work 'Prospects, Challenges, Barriers and Solutions for Small Hydropower Investments in the SEE' and Energy Community Area. Can small hydropower investments be successful in SEE and Energy Community countries in the face of current economic and administrative challenges and barriers?- is the investigation of opportunities, possibilities, constraints and limits of small hydropower investments within the Balkan (or South Eastern European countries) and Energy Community region in 14 countries selected for the market: Former Yugoslavia: Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, Serbia and Slovenia; Other South Eastern European and Energy Community countries: Albania, Bulgaria, Georgia, Greece, Moldova, Romania and Ukraine. The methods chosen in this work: Identifying the potential of hydropower plants development in the above mentioned countries; Analyzing their investment possibilities and market chances as well as limits and barriers; Partially comparing the results with the German-speaking world (Austria, Germany and Switzerland (when data available, as Switzerland is neither a European Community nor an Energy Community member)). The results show the enormous market chances both in the area of former Yugoslavia and in the other Balkan and Energy Community countries for hydropower investments (small and large). When considering sustainability as the only investment criterion, the market potential of small hydropower investments would be rather restricted. However, the mix of other barriers, obstacles and constraints has a strong impact on small (and large) hydropower investment activities in nearly all of the selected countries. Since the Lehman Brothers collapse in September 2008, which severely affected the Balkan (South East Europe) and Energy Community area, banks were more or less unwilling to make loans to support investments and growth of economy. This led to a regional decline in the number of investments in the renewable energy business. As a solution to close the funding gap, an alternative financing possibility will be structured and analyzed.