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 massive 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.
Siemens Energy will also collaborate with the Government to develop training and vocational programs for the people of Afghanistan, supporting the creation of a skilled and competitive local workforce for the development of infrastructure and industries.
His Excellency Ashraf Ghani, Afghanistan President: “Energy is not only the infrastructure of infrastructure, it is the fundamental condition for the formation, expansion, and development of all of our capitals, whether it is human capital, social capital or financial capital. We will build an Afghanistan where citizen can look forward to reliable power, not only for their homes and offices, but to ensure that their products, whether agricultural, industrial, or services, can rely on sustained, 24-hour energy, 7 days a week, 365 days a year.”
Currently, parts of Afghanistan’s electricity grid network are fragmented and supplied as passive islands with power fed from neighboring countries.
The goal is to increase the 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.
Presently, only around 28 per cent of the 37 million people living in Afghanistan have access to electricity.
Christian Bruch, CEO of Siemens Energy: “The development of this plan will provide long lasting benefits in Afghanistan which will be felt for generations to come. The electrification of Afghanistan will be done sustainably and efficiently, turning the nation into a beacon for energy advancement and transforming the country into a regional energy hub. This project is symbolic of Siemens Energy’s goals; to take a holistic approach to energizing society, in an efficient, cost-effective and decarbonizing way.”
The three phases
- 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 stabilization, 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.
Featured photograph showing a village in Afghanistan, sourced from www.aa.com.tr
