The 53 megawatts Bujagali power project was switched on Thursday, supplying electricity to the National grid.
The power project was switched on by the Prime Minister Amama Mbabazi.
He said supplies to the National grid will rise after the commissioning of the two power plants at Bujagali expected in June.
In December 2011, President Museveni was quoted saying that Uganda has regular nationwide outages amid a power deficit, with production at 375 megawatts and consumption at 450 megawatts by the end of last year.
Irene Muloni, the Minister of energy said that Uganda will end electricity subsidies, which have cost the nation 1.53 trillion shillings since 2005.
The minister said that Uganda will use the savings to finance public infrastructure projects, including the construction of the 600 megawatt Karuma Hydropower Project, whose construction starts in May.
The plant is jointly owned by Sithe Global Power LLC and Industrial Promotion Services Kenya Ltd., an affiliate of the Aga Khan Fund for Economic Development SA through Bujagali Energy Ltd.
– Uganda Radio Network