The invention discloses a small hydropower station generating capacity prediction system based on a cloud edge fusion architecture and an implementation method thereof, and the method comprises the steps: collecting the real-time meteorological data and small hydropower station generating data of a measured region from an external system, directly uploading the real-time meteorological data and small hydropower station generating data to a cloud computing server through a VPN channel to achieve the human-computer interface of the system through the Internet; enabling the cloud computing serverto transmit the meteorological data and the small hydropower station power generation data to an edge server for storage. A small hydropower station generating capacity prediction model is constructed, small hydropower station generating capacity prediction is carried out by utilizing the model, then a prediction result is returned to a cloud computing server, system core analysis functions of data analysis, mining, prediction and the like are completed, and finally the prediction and analysis results are transmitted to terminal equipment through the Internet to be displayed. The method is atypical case of organic combination application of cloud computing and edge computing technologies, and effectively solves the problems of storage, transmission and display of power grid sensitive data while improving the reliability of the system.