A Memorandum of Understanding on electricity cooperation has been signed between Iran and Afghanistan, which will allow the exchange of power between the two countries.

Both countries committed to bilateral cooperation with the aim of upgrading legacy grid infrastructure, repairing aging transmission lines and ultimately facilitating synchronization of the two country’s grids.

Iranian deputy energy minister Homayoun Haeri and the director general of Tavanir Organization Mohammad Hassan Motavallizadeh signed the MoU on behalf of Tehran. The director general of Afghanistan Electricity Company Amanallah Ghaleb signed on behalf of the Afghan government.

According to Homayoun Haeri: “The Memorandum of Understanding has defined broad areas for cooperation that can further highlight the power industry relationship between the two countries.

He added: “This memorandum of understanding can support the private sector of both countries, so that both the Iranian private sector can participate in Afghan projects and the Afghan private sector can work in the Iranian electricity industry.”

Both Iran and Afghanistan expect broad economic benefits from the agreements, enabling electricity exchange and improved cross border relations with Turkmenistan.

Iran is a major player in the region’s energy exports, currently supplying Iraq, Afghanistan and Pakistan with electricity. This MoU forms part of their efforts to increase energy export to neighboring countries.