Afghanistan’s Renewable Energy Outlook and Investment Opportunities (2025–2035)
Afghanistan aims to significantly increase the share of electricity generated from renewable energy sources by 2035, aligning with its broader goals for sustainable development, energy security, and climate resilience. This strategic objective is structured into two distinct phases:
Phase I (2025–2030): This phase will prioritize the development of essential infrastructure, enhancement of institutional and regulatory frameworks, and the mobilization of both national and international investments in the renewable energy sector.
Phase II (2030–2035): The focus will shift towards the full commercialization of renewable energy resources, ensuring long-term sectoral sustainability and integration into the national energy market.
Renewable Energy Potential in Afghanistan
Afghanistan is endowed with vast renewable energy resources—including solar, wind, hydro, geothermal, and biomass—which are geographically widespread across the country. Unlike conventional energy sources that are typically centralized, renewable resources offer a decentralized model of energy generation, supporting rural electrification and local development.
Estimates indicate that Afghanistan has the technical potential to generate over 318 GW of electricity from renewable sources:
Solar Energy: 222,000 MW
Wind Energy: 67,000 MW
Hydropower: 23,000 MW
Geothermal Energy: 3,000–3,500 MW
Biomass Energy: 4,000 MW
Despite this extraordinary potential, Afghanistan has so far tapped into only a small fraction of its renewable energy capacity. Currently, more than 80% of the country's electricity demand is met through imports, highlighting a severe dependence on neighboring countries and exposing the energy sector to external vulnerabilities. This dependence constrains economic growth, hinders industrial development, and limits access to reliable energy—particularly in rural and underserved regions.
Challenges and Opportunities
Electricity consumption in Afghanistan remains low in comparison to regional and global benchmarks. Approximately 50% of national demand is met through domestic generation. The current grid infrastructure is fragmented into three isolated networks: the North East Power System (NEPS), South East Power System (SEPS), and Western Power System (WPS). This disconnection impedes power exchange and efficient energy distribution.
To address the mismatch between supply and demand—currently estimated at a gap of over 7,000 MW—there is an urgent need for investments in high-voltage transmission lines (220 kV and 500 kV), substations, and grid integration projects. A unified, interconnected national grid will not only enhance energy reliability but also allow for the large-scale deployment of renewable resources.
The Government of Afghanistan actively facilitates investment in the renewable energy sector by offering land for project development and, in certain cases, providing Viability Gap Funding (VGF) to enhance project bankability and attract private sector participation.
Recent Progress and Key Investment Projects
Encouragingly, Afghanistan’s national utility, Da Afghanistan Breshna Sherkat (DABS), has recently signed agreements for the development of 228 MW of generation capacity from solar, wind, and gas sources. I am proud to have played a core role in the finalization of the following seven strategic investment projects across various provinces:
40 MW Sheikh Mesri Solar Power Plant – Nangarhar Province
40 MW Dehdadi Solar Power Plant – Balkh Province
40 MW Mohammad Agha Solar Project – Logar Province
10 MW Dasht-e-Baba Saheb Solar Power Plant – Laghman Province
5 MW Rooftop/Utility-Scale Solar Plant – Herat Province
200 MW Wind Power Project (First Phase: 43.2 MW) – Herat Province
50 MW Gas-Fired Thermal Power Plant – Jawzjan Province
These projects mark a critical step toward achieving energy diversification, enhancing domestic generation capacity, and reducing dependence on imported electricity.
Non-Renewable Resource Potential
In addition to renewable resources, Afghanistan also holds significant reserves of fossil fuels—particularly natural gas, coal, and oil—that present further opportunities for energy sector investment. While the long-term national strategy prioritizes renewables for environmental and economic reasons, selective and responsible investment in non-renewable resources can serve as a transitional solution to meet immediate energy needs and stabilize the grid.