Kilembe Mines Limited built the state in the 1950s to power the extraction of copper ore from the Rwenzori Mountains. The copper extraction ceased in the 1970s, and the power generated is now sold to the national grid. The Mubuku I Power Station is the third mini-hydropower station on the Mubuku River. The other two are the Mubuku II Power Station, commonly known as the Bugoye Power Station and owned by Tronder Power Limited, a Norwegian company, and the Mubuku III Power Station, owned by Kasese Cobalt Company Limitd with an installed capacity of .