In the first half of the 1970’s, Steirische Wasserkraft- und Elektrizitäts-AG (STEWEAG) was searching for further energy efficiency development possibilities on the rivers of Styria. The investigations in Upper Murtal revealed that the Mur and the two tributaries, Turrachbach and Paalbach, were suitable for the construction of power plants.
The investigation results of early 1978 led to a preliminary water rights-related analysis entitled "Stadl an der Mur". The STEWEAG planners reduced the number of stream diversions and opted, on the one hand, for an intermediate pressure stage with a small reservoir on the Paalbach and the diversion of Turrachbach and Minibach and, on the other hand, for a low pressure stage on the Mur to be accommodated in a single power house at Bodendorf. After the granting of the water rights for the Mur and Paal pressure stages on 13 December 1978, construction work began with the development of the site on the banks of the Mur.
On 8 June 1979, the 9.2 km long headrace tunnel was installed between Bodendorf and the reservoir in Bodendorf. In July 1982, when the key plant components had been completed, it was possible to commission the intermediate pressure unit. The works on the Bodendorf-Paal power plant were completed in August 1982.