Siemens Energy to develop energy hub in Afghanistan

17 November 2020

Siemens Energy has signed a multi-phase agreement with Afghanistan to establish the country as an energy hub in central Asia by developing a modern, sustainable, and cost-effective power system, incorporating the potential of renewable energy generation.

The agreement builds on a Memorandum of Understanding that Siemens signed with the government of Afghanistan in January 2019, to support the country’s sustainable development. 

As part of the Afghanistan Energy Hub agreement, through a three-phased plan, Siemens Energy will support Afghanistan’s power sector by developing a reliable and affordable electricity supply, whilst addressing the efficient use of natural resources, to improve revenue streams back to the government. 

The goal is to increase access to electricity to unlock the potential of Afghanistan and stimulate economic and industrial growth. The plan will also enable Afghanistan to generate new income by leveraging its geo-strategic positioning as energy transit hub and exploiting abundant domestic renewable energy resources.  

Currently, parts of Afghanistan’s electricity grid network are fragmented and supplied as passive islands with power fed from neighbouring countries. Presently only around 28% of the 37 million people living in Afghanistan have access to electricity.

The first phase of the Afghanistan Energy Hub will focus on establishing the commercial and technical feasibility. The second phase will focus on grid expansion and stabilisation, completing a national grid with international connections and the formation of local generation hubs utilizing renewable energy. The third phase will focus on developing the renewable energy sector as well as further sustainable and cost-effective energy production. 

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