Siemens Energy to develop Afghanistan as an energy hub
Siemens Energy's Middle East bosses sign the deal

Siemens Energy has signed a multi-phase agreement with Afghanistan to establish the country as an energy hub in central Asia.

Siemens Energy will develop modern, sustainable, and cost-effective power systems, incorporating the massive potential of renewable energy generation in Afghanistan.

Representatives from the Afghan government and from Siemens Energy signed a Memorandum of Understanding in Abu Dhabi for joint cooperation to support the country’s power sector.

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

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As part of the Afghanistan Energy Hub agreement, through a three-phased plan, Siemens Energy will develop a reliable and affordable electricity supply, whilst addressing the efficient use of natural resources to improve revenue streams to the government.

The first phase of the Afghanistan Energy Hub will focus on establishing the commercial and technical feasibility.

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

The second phase will focus on grid expansion and stabilisation, 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 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.

Projects to be implemented will help to increase access to electricity to unlock the potential of Afghanistan and stimulate economic and industrial growth.

Ashraf Ghani, the president of Afghanistan, 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.

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“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.”

Siemens Energy chief executive Christian Bruch adds: “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.”

He said the project is “symbolic of Siemens Energy’s goals; to take a holistic approach to energising society, in an efficient, cost-effective and decarbonising way”.