In August 2025, in a significant step toward national development and energy self-sufficiency, Afghanistan’s Ministry of Energy and Water has entered into a landmark agreement valued at $10 billion with a domestic private company. The deal is aimed at implementing multiple large-scale energy projects designed to collectively generate up to 10,000 megawatts (MW) of electricity across the country. This initiative represents one of the most ambitious energy programs ever undertaken in Afghanistan and signals a renewed focus on infrastructure, investment, and long-term sustainability.

The agreement covers a range of power generation projects, which may include hydroelectric, solar, wind, and possibly thermal energy sources, tailored to Afghanistan’s geographical and environmental strengths. With Afghanistan facing chronic electricity shortages and relying heavily on imports from neighboring countries, this move is expected to not only reduce dependency on foreign energy but also provide a major boost to local industries, agriculture, and households.

A key feature of this agreement is the emphasis on domestic investment and partnership, reflecting the government's commitment to empowering Afghan businesses and utilizing local expertise. The domestic company involved, though not yet publicly named, is expected to take charge of the project planning, engineering, construction, and long-term operation of the new energy facilities. This approach will likely generate thousands of jobs and stimulate skill development across the energy sector.

The government has stated that the 10,000 MW capacity, once operational, will significantly exceed the country’s current energy production levels. Presently, Afghanistan produces less than 600 MW of power domestically and imports nearly 80% of its electricity from neighboring countries such as Uzbekistan, Tajikistan, Turkmenistan, and Iran. The new deal is thus a strategic move to transform Afghanistan from an energy importer to a more self-reliant power producer.

Furthermore, this energy development program aligns with Afghanistan’s broader vision of national reconstruction and economic revitalization. A stable and sustainable power supply is essential for industrial growth, health care delivery, education, and digital services. With improved access to electricity, the country can hope to unlock new opportunities for business, reduce poverty levels, and improve the standard of living for millions of Afghans.

In addition to economic benefits, the project has potential environmental advantages. If renewable sources like solar and wind are heavily utilized, Afghanistan could position itself as a leader in clean energy within the region. Such a shift would help address the growing global concern over climate change while ensuring a long-term, eco-friendly solution to its energy needs.