Mitochondria are known are as the powerhouse of the cell because they are responsible for the release of energy from food ie., cellular respiration. This energy is released in the form of ATP (adenosine triphosphate), the energy currency of the cell.
While the cells release 2ATP, mitochondria releases 34ATP which adds up to 36 ATP. Since a major portion of the ATP is released by mitochondria, they are called the powerhouse of the cell.
Richard Altmann in 1890, established them as cell organelles and called them "biboblasts". The term mitochondria was coined by Carl Benda in 1898.