Policy & Regulation

17 Nov 2020

Siemens Energy to Build Afghan Energy Hub

17 Nov 2020  by   

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 that incorporates 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.

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

The first phase will focus on establishing the commercial and technical feasibility, with the second stage addressing grid expansion and stabilisation by completing a national grid with international connections and the formation of local generation hubs utilising renewable energy.

The third phase will focus on developing the renewable energy sector as well as further sustainable and cost-effective energy production.

Siemens Energy will also collaborate with the government to develop training and vocational programmes for the people of Afghanistan, supporting the creation of a skilled and competitive local workforce for the development of infrastructure and industries.

Currently, parts of Afghanistan’s electricity grid network are fragmented and supplied as passive islands with power fed from neighbouring countries.

Only around 28% of the 37 million people living in the country have access to electricity.

Siemens Energy chief executive Christian Bruch said: “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 energising society, in an efficient, cost-effective and decarbonizing way.”

Afghanistan President Ashraf Ghani said: “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, seven days a week, 365 days a year.”

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