Afghanistan’s Power Utility Enters PPAs for 30 MW Grid-Connected Solar Projects

The national power utility of Afghanistan, Da Afghanistan Breshna Sherkat (DABS), has entered Power Purchase Agreements (PPAs) for the purchase of power from two grid-connected solar PV projects. The two solar projects have a capacity of 15 MW each.

The projects are being developed by Turkey-based 77 Construction Company and Zularistan Energy for Afghanistan (ZEFA) in Kandhar province of the country. DABS has entered the PPAs with both the firms for a period of 20 years.

According to DABS, the projects will be developed at an estimated cost of $47.34 million, of which 46.47 percent is to be funded by the Afghanistan government, while another 25.34 percent will come from the investor’s participation.

The basic price for solar energy is more than $0.012/kW. However, DABS is paying a tariff of $0.085/kW, and the Afghanistan government is providing a subsidy of $0.065/kW to provide impetus to the country’s solar industry.

DABS also intends to build a grid-connected solar PV project in Kabul’s Naghlu region with assistance from the Asian Development Bank (ADB).

The commitment letter of this solar PV project has been signed and the project will be developed at an estimated cost of $44.76 million, which will be funded by ADB’s grant.

ADB is focused on Asia’s renewable energy market. In the past, the bank has also approved a spate of grants and loans for renewable energy projects, specifically solar, in BangladeshSri Lanka, and India.

Recently, a 10 MW grid-connected solar PV project was also inaugurated in Afghanistan’s Kandhar province.

Afghanistan’s renewable energy resource potential is estimated to be more than 300,000 MW. More than two-thirds of that is attributable to solar, with the country benefiting from about 300 sunny days in a year.