The power station is located across the Mubuku River, in Bugoye, Kasese District, in Western Uganda.

This location lies in the foothills of the Rwenzori Mountains, close to the border with the Democratic Republic of the Congo.

Bugoye lies approximately 19 kilometres (12 mi), by road, north of Kasese, the location of the district headquarters, and the nearest large city.

The energy generated is fed into the national electric grid at Nkenda Substation, located 6 kilometres (3.7 mi) from Bugoye, via a 33kV transmission line.

The other two are Mubuku I Power Station, owned by Kilembe Mines Limited (KML), with installed capacity of 5 MW and Mubuku III Power Station, owned by Kasese Cobalt Company Limited (KCCL), with installed capacity of 10 MW.