Bayat Power, Ministry of Energy extend power production agreement for another 10 years

Bayat Power has extended its agreement with Afghanistan’s Ministry of Energy and Water to continue producing 40 megawatts of gas-fired electricity in Jawzjan province for another ten years, reinforcing one of the country’s most significant domestic energy partnerships.

The agreement was signed between Bayat Power CEO Ali Kasemi and Afghanistan’s Minister of Energy and Water Mawlavi Mohammad Younus Akhundzada, further securing long-term electricity generation from domestic natural gas resources.

Kasemi welcomed the extension and said the company remains committed to supporting Afghanistan’s development through reliable local energy production.

“We welcome the signing of this agreement and reaffirm Bayat Power’s commitment to helping develop Afghanistan through sustainable and dependable electricity generation,” Kasemi said.

The renewed deal ensures that electricity generated from natural gas in northern Afghanistan will continue to be distributed through Da Afghanistan Breshna Sherkat (DABS), supplying homes, businesses and key public services across the country.

The latest agreement follows a series of energy partnerships signed by Bayat Power in recent months aimed at strengthening Afghanistan’s domestic electricity production and reducing reliance on imported power.

In April, Bayat Power renewed its natural gas supply agreement with Afghan Gas for another ten years, securing continued fuel supplies for the company’s operations in Jawzjan province.

Earlier in January, Bayat Power and DABS also signed a separate 10-year extension agreement for electricity production and distribution. The deal included a technical memorandum of understanding focused on expanding operational cooperation and exploring opportunities to increase future production capacity.

Bayat Power is currently Afghanistan’s largest private electricity producer and operates Bayat Power-1, the country’s first modern gas-to-electricity plant.

Located in Jawzjan province, the facility uses Siemens Energy’s advanced SGT-A45 mobile gas turbine technology and remains a central part of Afghanistan’s efforts to strengthen domestic energy production and improve long-term energy security.

The power plant currently generates more than 300 million kilowatt-hours of electricity annually and supplies power to hundreds of thousands of end users.

The project was developed as a public-private partnership involving Bayat Power, Siemens Energy, Afghan government institutions including the Ministries of Mines and Petroleum and Energy and Water, Afghan Gas, and DABS.

Officials say the continued extension of these agreements reflects growing efforts to support Afghanistan’s economic development through local investment, infrastructure expansion and increased energy self-reliance.