In 1983, Dniester II, a dam which creates the PSP's lower reservoir, was completed.

Three years later in 1991 though, construction was suspended due to a funding fallout from the dissolution of the Soviet Union.

[8] The power station begins operation by using reversible turbines to pump water, during low energy demand periods, from the lower reservoir which is created by the Dniester HPP-II Dam, located 7.5 kilometres (5 mi) to the southeast near the border with Moldova at 48°29′16″N 27°34′07″E / 48.48778°N 27.56861°E / 48.48778; 27.56861 (Dniester HPP-II Dam).

During periods of high energy demand, water is released from the upper reservoir back to the power station for generation.

[9] While only 4 are currently operational, the power station will contain 7 324 MW reversible Francis turbine generators.