Afghanistan Launches $10 Billion Power Project to Transform Energy Landscape and Achieve Self-Reliance – EQ
In Short : Afghanistan has signed a $10 billion deal with Azizi Energy to develop 10,000 MW of power using coal, gas, hydro, wind, and solar sources. The project aims to achieve energy independence, create up to 150,000 jobs, and boost industrial growth. Spanning 7–10 years, it’s Afghanistan’s largest energy initiative, targeting domestic supply and potential electricity exports.
In Detail : Afghanistan has signed a landmark $10 billion agreement with Azizi Energy to generate, transmit, and distribute 10,000 megawatts of electricity across the country. The deal, signed on August 2, 2025, marks the largest energy development initiative in the country’s history and is seen as a major step toward achieving energy self-sufficiency.
The ambitious project includes a diversified energy mix: 3,400 MW will come from coal-based power plants in Balkh, Bamiyan, Herat, and Baghlan provinces. Another 3,700 MW will be generated using natural gas, particularly in the energy-rich regions of Jawzjan, Herat, and northern Afghanistan.
In addition to fossil fuels, the project will utilize renewable sources. Hydroelectric power is expected to contribute 2,040 MW, with facilities planned in Kabul, Kapisa, and Daikundi. Wind and solar energy will add 700 MW and 200 MW respectively, with installations in provinces such as Herat, Farah, Kandahar, and Ghazni.
The implementation is structured in phases over a period of 7–10 years. The technical design phase is expected to be completed within six months, with electricity generation beginning as early as 2026. Initial output of 2,000–3,000 MW will gradually scale up toward full capacity by 2032.
Approximately 98 percent of the workforce employed in the project will be Afghan nationals. Azizi Energy also plans to establish a training center to build local capacity and ensure sustainable skill development. The company estimates the creation of 100,000 to 150,000 jobs across construction, operations, and support sectors.
The project is expected to allocate 4,000 MW for residential consumption and 6,000 MW for industrial and commercial use. This is projected to boost domestic manufacturing, support new factory development, and significantly increase government revenues through industrial growth.
Currently, Afghanistan imports over 70 percent of its electricity from neighboring countries including Uzbekistan, Iran, Tajikistan, and Turkmenistan. With limited domestic generation capacity, only around 40 to 50 percent of the population has reliable access to electricity.
Government officials expressed optimism that the new power infrastructure will transform Afghanistan’s economic landscape. The move is intended not just to meet current needs but also to position the country as a future exporter of surplus electricity in the region.
This bold energy initiative comes amid persistent challenges related to infrastructure, security, and international recognition. Still, Afghan leaders view the project as a cornerstone for economic revival, industrial progress, and long-term energy independence.
