At the beginning of 1907 the Timișoara administration began the construction of a new Bega canal between the entrance to the city and the Neptun Palace in the Fabric district. Because the difference in water level between these two points is more than 4 metres, in 1909 the City Hall decided to build a hydroelectric power plant on the Bega Canal, to plans by the architect Székely László. The hydroelectric plant was put into operation in 1910. The main building of the plant consists of a rectangular block. The sluice gates form the second major component of the site, and a wooden walkway is built above them. The electricity produced here was used for the trams and for public lighting.