It revealed that all the power stations have a combined capacity of 200 megawatts (MW).
The prolonged drought that hit the country at the beginning of last year reduced the country's effective generation capacity at the Kiira and Nalubaale hydropower stations in Jinja from 180MW to 135MW.
This coupled with increased demand for energy arising from economic growth over years, and created a severe power shortage in the country. The shortfall in electricity supply in peak periods amount to almost 200 MW.
Kabagambe Kaliisa, permanent secretary of the ministry, called on local investors to take the opportunity in the power stations.
In the 2006/2007 budget, the government also encouraged the development of smaller hydropower options. More sites are to be continuously identified and assessed when resources are available.