The article presents the results of the analysis and evaluation of the state, development dynamics and sectoral structure of FEC. The authors note the leading position of FEC in Russian economy and in formation of tax liabilities and present a comparative analysis of the state of FEC and HPP (Hydro Power Plants) industries in the Russian Federation and abroad as for a number of economic parameters (such as the installed capacity, energy rates, specific investment costs). The problems and tasks of the industry development have been revealed: evaluation of the need for investments, role and criticism of energy subsidies in Russia. The authors have assessed “tax maneuver” in the industry and identified the factors influencing on FEC development. The article will be of interest for managers working out development programs for small HPP facilities.