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The United States and Afghanistan Sign Renewable Energy Deal

23 September 2020

Kabul, Afghanistan – Today, the Afghanistan Government signed agreements with Independent Power Producers to support four renewable energy projects to increase access to reliable and affordable electricity for Afghans. The signing event was hosted by the President of the Government of the Islamic Republic of Afghanistan Ashraf Ghani.

“Congratulations to everyone who made this happen. The successful and timely completion of these projects will send a clear signal to the private sector that Afghanistan is ready and open for business,” said U.S. Chargé d'Affaires to the Islamic Republic of Afghanistan, Ambassador Ross Wilson.

Afghanistan's lack of readily available, reliable, and affordable electricity constrains the country’s economic growth and development. USAID/Afghanistan works with the Government of Afghanistan to increase the availability of electricity as part of USAID’s Private Sector Engagement strategy, with the objective of supporting the private sector to assist Afghanistan on its journey to self-reliance.

Today, four power purchase agreements were signed between USAID-funded Independent Power Producers (IPPs) and the Government of the Islamic Republic of Afghanistan’s (GoIRA’s) national power utility, DABS. All four of the projects align with the development objectives of the GoIRA and the U.S. government to increase access to reliable and affordable electricity for Afghans.

Upon completion, these projects will add an additional 110 megawatt of power into the Afghan electricity grid while providing access to reliable and affordable power to over a million Afghans.  All these efforts will contribute to the economic development of the country and attract private sector investment.

Since 2002, USAID has supported Afghanistan to become a more self-reliant nation that can better partner with the U.S. Government on our national security goals. USAID partners with Afghanistan to ensure private sector led economic growth, to strengthen the country's nascent democracy, to advance the gains made by Afghan women, and to provide basic health and education services for all Afghans.