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Ministry of energy pushes ahead with plans to increase power output

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Last Updated on: June 19, 2022

Officials from Afghanistan’s Ministry of Energy and Water have identified 16 electricity-generating projects that once established will increase power output and help make the country less reliant on its neighbors for this critical commodity.

The ministry’s spokesman Mawlavi Akhtar Mohammad Nasrat said of these 16, there are 12 thermal and solar power projects that have been identified and proposals have been shared with domestic and foreign investors in the hope of attracting financial backing.

Nasrat told Ariana News they have spoken to possible investors from Russia, Iran, the US, China and Turkey but as yet no agreements have yet been finalized.

“Companies and donors came here to Afghanistan from Russia, US, China, Iran, and Turkey and said they are interested in investing in this area to increase electricity generation across the country,” he said.

Economists also believe that if investors can be found to support this sector, and more electricity is generated, industry will grow.

One economist, Taj Mohammad Talash, said he thinks the agricultural sector would also grow if more power was generated. He said: “The Islamic Emirate can prioritize energy in three categories, through water, wind, and solar.”

Currently, Afghanistan pays its neighboring countries about $250 million a year for electricity as it generates only about 600 megawatts (MW) from several hydroelectric, fossil fuel and solar plants.

However, an additional 670 MW is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan.

Power projects ‘prioritized’

In April, the IEA’s Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, gave orders for various ministries to prioritize projects to generate electricity.

At the time, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in” it was decided that the generation of electricity should be a priority.

According to the statement, the commission instructed the Ministry of Mines and Petroleum; the Ministry of Trade and Industry; the Chamber of Industry and Mines; as well as the Chamber of Commerce and Investment, under the leadership of the Ministry of Energy and Water, to also generate electricity from coal.

A shortage of power has plagued Afghanistan for decades despite it having ample hydropower, coal and fossil fuel resources.

Over the past few years however, one successful private partnership has emerged – between the Afghan government and Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company which has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to thousands of people in Afghanistan.

Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 41 megawatts of power for Afghan homes and businesses.

To date, Bayat Power has delivered over 600 million kilowatts of domestic power to the Afghan grid. However, Bayat Power hopes to eventually roll out three phases in total, that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

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Ariana Afghan Airlines lowers cargo rates on Kabul–Delhi route to boost exports

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Ariana Afghan Airlines has announced a reduction in cargo service rates on the Kabul–Delhi route as part of efforts to support Afghanistan’s trade and export sector.

The airline said the new cargo rate has been set at $1.20 per kilogram, a move intended to make air freight more affordable and accessible for Afghan traders and exporters.

Bakht-ur-Rahman Sharafat, head of Ariana Afghan Airlines, said the decision is expected to play a significant role in increasing exports of domestic products and strengthening commercial activity between Afghanistan and India.

He added that Ariana will continue to introduce new measures in the future to improve its services and better meet the needs of its customers.

 
 
 
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Afghanistan, Uzbekistan sign 13 trade MoUs worth over $100 million

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Thirteen trade and investment memorandums of understanding (MoUs) worth more than $100 million were signed between private sector representatives of Afghanistan and Uzbekistan during a conference held in Kabul on Saturday.

The conference, which brought together business leaders and officials from both countries, focused on expanding bilateral economic cooperation, increasing trade volume, and identifying new investment opportunities.

Speaking at the event, Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, said economic relations between Afghanistan and Uzbekistan have gained notable momentum in recent months. He stressed that Afghanistan is actively working to strengthen regional trade ties and create a more favorable environment for investors.

Azizi added that Afghanistan offers significant investment potential, particularly due to its available workforce and emerging opportunities across multiple sectors, and is ready to welcome joint ventures with foreign partners.

Officials from the Ministry of Industry and Commerce of Afghanistan said the government has facilitated around $2 billion in investment across various sectors over the past year, reflecting growing investor interest in the country’s economy.

The Uzbek delegation also reiterated its commitment to expanding economic relations with Afghanistan, describing the agreements as an important step toward deeper regional cooperation.

Amanbay Orynbayev, head of Uzbekistan’s Karakalpakstan delegation, said his country places strong emphasis on long-term, transparent, and reliable economic partnerships. He encouraged Afghan traders to take advantage of joint investment opportunities to access new regional markets.

The Afghan private sector welcomed the agreements, expressing hope that increased trade engagement and business exchanges will further strengthen economic ties between the two neighboring countries.

Officials noted that the total value of agreements signed between Afghanistan and Uzbekistan has now exceeded $1.5 billion. If implemented effectively, these commitments are expected to contribute to increased trade flows and broader economic growth in Afghanistan.

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New Afghanistan-China transport corridor launched via Turkmenistan

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A new multimodal freight corridor linking China and Afghanistan via Turkmenistan has been officially launched, aiming to improve the speed and efficiency of overland cargo transportation across Central Asia.

According to the Turkmenistan Embassy in London, the country has become part of a newly established route designed to accelerate freight deliveries between China and Afghanistan.

The corridor, developed with the involvement of Uzbekistan Railways’ subsidiary Uztemiryulcontainer, covers approximately 7,400 kilometers and is expected to reduce transit time to around 30 days, improving overall logistics efficiency.

Under the new route, containers are transported by rail from China through the Altynkol station in Kazakhstan, continuing via Uzbekistan to a logistics hub in Bukhara. From there, cargo is transferred to road transport and moved across Turkmenistan before reaching Herat in Afghanistan.

Officials say the new system integrates rail and road networks into a unified logistics chain, making transport more predictable and efficient.

 

 

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