Above the Soča Valley in the vicinity of the idyllic village Kanalski vrh an artificial lake can be admired. This retention reservoir, which stretches out over a surface of 15 hectares, has a volume of
2.2 million m3 and has been built in a natural hollow depression. Because of a high demand of peak load energy the idea to construct a pumped – storage hydropower plant came up, which would enable a more economically advantageous exploitation of the water source. During periods of low electric energy prices – at night and on weekends, the pumped - storage hydropower plant consumes energy to pump the water into the accumulation reservoir, during periods of a high electrical demand on the other hand, when the electricity prices are the highest, the accumulated water is used to produce electric energy. The artificial lake is delimited in the North and the South by natural slopes, in the Northeast and the Southwest, however, two embankment dams (23 m and 17 m high) of the excavated material have been built.