In a landmark effort to boost Afghanistan’s renewable energy sector and accelerate economic recovery, Kabul this week hosted the “Partnerships for Green Growth: Business-to-Business Convening on Renewable Energy Investments.”

Held on Wednesday and Thursday, June 25 and 26, the high-level event brought together national and international stakeholders under the theme “Accelerating Investments Through Partnerships and Facilitating Access to Finance.”

Amidst a fragile but gradually recovering economy, Afghanistan continues to face a stark energy deficit that hampers industrial growth, limits delivery of essential public services, and impacts the quality of life for millions. Despite vast solar, wind, and hydro resources, only a fraction of the country’s renewable energy potential has been harnessed.

According to UNDP, this persistent energy gap is a major development challenge. “Closing this gap requires urgent and inclusive investment, with a strong focus on scaling up renewable energy solutions that are resilient, decentralized, and adapted to Afghanistan’s diverse geography,” the agency stated.

“Attracting investment in the renewable energy sector is not only necessary, but also strategically advantageous,” UNDP added.

“The Afghan energy market holds considerable potential, particularly in regions where off-grid and mini-grid systems can rapidly transform local economies” – UNDP

The agency emphasized that unlocking this potential requires proactive dialogue and collaboration among development partners, the private sector, and local stakeholders, along with showcasing bankable opportunities and de-risking tools.

This week’s forum served as a strategic platform to address these issues by connecting investors, development partners, and policymakers to explore new financing models and partnerships.

Organized in collaboration with the United Nations Development Programme (UNDP), the Afghanistan Chamber of Commerce and Industries (ACCI), and the Afghanistan International Bank (AIB), the conference spotlighted the Green Economy Financing Facility (GEFF)—an initiative designed to mobilize sustainable investments using Shariah-compliant financial tools and blended finance models.

Bayat Power Highlights Local Capacity and Innovation

A key voice at the event was Bayat Power, Afghanistan’s first private company in over 40 years to establish and operate a domestic gas-fired power plant.

In his address to delegates, Lutfullah Stanikzai, Business Development Director of Bayat Power, reaffirmed the company’s long-term commitment to energy independence.

Founded in 2013 under the Bayat Group, the company launched Bayat Power-1 in 2019 as a public-private partnership with DABS, the Ministry of Energy and Water, Afghan Gas State-owned Company, Siemens Energy, and others. Since then, the plant has produced over 1 billion kilowatt-hours of electricity, powering homes, hospitals, schools, mosques and businesses across the country.

Stanikzai emphasized the company’s use of cutting-edge technologies—including Siemens’ SGT-A45 mobile gas turbines, among the most efficient in the world—and its deployment of over 1,000 smart meters in Kabul as part of a pilot project to improve grid efficiency.

“Our efforts have not only powered essential public services but also generated thousands of direct and indirect jobs, contributing to economic stability and workforce development,” Stanikzai said. He added that Bayat Power’s tax contributions and gas purchases support national revenue generation.

“Afghanistan deserves cutting-edge solutions, not outdated technology,” he stressed. “We are committed to deploying modern systems that offer both performance and environmental sustainability.”

Looking ahead, Bayat Power is expanding into solar, wind, and thermal energy projects and seeking to engage international partners for technical collaboration and investment.

“Our long-term vision aligns with Afghanistan’s goal of a resilient and self-reliant energy future,” Stanikzai concluded.

Bayat Power’s presentation stood out as a compelling example of what can be achieved through innovation, private-public collaboration, and a deep commitment to national development.