Afghanistan Rural Energy Market Transformation Initiative – Strengthening Resilience of Livelihoods Through Sustainable Energy Access

Afghanistan faces severe energy shortages due to an ailing energy infrastructure, high dependency on diesel and kerosene fuels, and weak power sector policy and regulatory frameworks. With no connection to the electricity grid, most rural communities depend on traditional biomass for cooking and heating - which aggravates indoor air pollution, accelerates deforestation, and leads to carbon emissions. This project is designed to kick-start a renewable energy market in rural Afghanistan. It will lay the necessary groundwork for the development of a mini-grid energy sector.  This will be done by focusing on both public and private sector financing.  Investments will help set up three solar mini-grids, with the intention to stimulate the further building of similar mini-grids in the future.  The project is targeted at encouraging private sector engagement, while ensuring that the future development of mini-grids incorporates social and environmental considerations.