During the 1950s, numerous small-capacity hydroelectric power plants were built in Spain. Seventy-five years on, it must now be decided whether to continue their operation or demolish them. In order to provide a valid answer, it is necessary to have access to decision-making tools that enable sustainable economic and environmental decision making. The present work proposes a methodology that employs an economic indicator of life cycle cost and environmental indicators of carbon footprint and embodied energy by means of life cycle data analysis. Quantification of the impacts was carried out with the support of construction cost databases and the PREDICE software tool for the quantification of environmental impacts incorporated into maintenance tasks. The case study of the “Cerrajón” power plant was analyzed, where historical hydrological cycles were considered. A life cycle scenario was evaluated in which renovation extended the life of the power plant by a further 75 years. The results show savings in environmental impacts with respect to the impacts of the Spanish energy mix of up to 175 kgCO2 per MWh produced, although no economic benefit was found. It was also shown that in climate change scenarios, the profit price breakeven increases. Rehabilitation appears to present the best choice when combining the two criteria.