On 4 April 1980, the Stadtwerke Eisernerz (Eisernerz Municipal Works) lodged an application with the Styrian Provincial Government Bureau for a permit under the Water Act for a hydroelectric power plant on the Erzbach. The plan was to divert works water from the Erzbach and process it in a power house with a drop height of around 50 m.
The permit was issued on 12 September 1980 with the requirement that the houses situated on the right bank within the municipal district of Eisernerz near the weir system be connected to the local sewage system running along the left bank. The follow-up project required to meet this requirement was approved on 19 October 1984,
In order to realise the construction project and with a view to subsequent operation, the Stadtwerke Eisernerz founded, together with the Steirische Wasserkraft- und Elektrizitäts-AG (STEWEAG - [Styrian Hydroelectric and Power Company]), the Eisernerzer Kleinwasserkraftwerksges.m.b.H. [Eisernerz Small Hydroelectric Plant, Ltd.] (EKG). Groundbreaking for the preliminary work took place at the end of October, 1980 with the actual construction work starting in Spring 1981. The originally planned culverting of the Seebach was had to be switched for topographical reasons to a pipe bridge crossing.
The J. M. Voith, Kössler and Andritz companies submitted tenders for various turbine models. The contract was ultimately awarded to Alois Kössler's Francis turbines in St. Pölten. On 3 May 1983, the two sets of machines were first connected to the grid and synchronisation and power cut-off tests performed.