Afghanistan still relies on energy imports from neighbouring countries in order to meet its domestic demand. Only about 32 percent of the population currently has access to grid-connected electricity and the demand for electricity in major load centres is growing by 25 percent annually. Reliance on energy imports, lack of enough power generation capacity, small domestic market and financing weaknesses leave energy security in the country highly vulnerable.
The country’s renewable energy resource potential is estimated to be over 300,000 MW, with over two-thirds of potential supply coming from solar. Afghanistan benefits from about 300 sunny days annually.
“The demand for power is rapidly growing across Afghanistan and economic development and income opportunities depend on sufficient energy supplies” said Samuel Tumiwa, ADB Country Director for Afghanistan. “The new on-grid solar power generation project, which is the largest of its kind in Afghanistan, will not only provide access to a clean and reliable power supply, but also demonstrate the viability of future renewable energy investments through public-private partnerships.”
The project will finance the construction of a 20 MW on-grid solar photovoltaic plant in Naghlu, in the Surobi district of the Afghan capital of Kabul. It will generate at least 43,000 MWh of solar power, avoiding at least 13,000 tons of carbon dioxide equivalent in the first full year of operation. It will partially fill the demand-supply gap and improve sustainability of the northeast grid covering Kabul, Nangarhar, and Laghman provinces. In addition, the project will provide power transformer and support facilities, upgrade the capacity of the existing substation, and operation and maintenance services for 3 years and prepare the site and substation to accommodate 10 MW of additional photovoltaic plant for future financing. The project may be expanded to 30 MW or 40 MW if additional financing from other development partners or the private sector is realised.
Support for building capacity will be provided for the Afghan Ministry of Energy and Water, and on solar photovoltaic plant design, technical evaluation, grid integration, and operation and maintenance for the government-owned energy utility Da Afghanistan Breshna Sherkat.
ADB is Afghanistan’s largest on-budget development partner in the energy sector, helping to deliver electricity to more than 5 million people in Afghanistan.
Over the coming years, ADB intends to support the increase in the country’s electrification rate from 30 percent to 83 percent and lift the share of domestic generation from 20 percent to 67 percent by 2030. ADB will also play a major role in power transmission both regionally and domestically, and promote clean energy, including through solar power.
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