AFGHANISTAN Renewables Offer Solutions For Volatile Oil Prices And Inflation

National Economy

The population of the Islamic Republic of Afghanistan is approximately 41.06 million people[1]. In 2020, 97.7 % of the people in this country situated at the crossroads of the Middle East and Asia had access to electricity[2].

In 2021, Afghanistan’s economy was ranked 113TH  in gross domestic product (GDP) in the world[3]. The country’s economy is dependent on the export[4] of gold, grapes, nuts, tropical fruits, and raw cotton.

Environmental Policies

In 2016, Afghanistan signed the Paris Climate Agreement[5], committing to 13.6% reduction in greenhouse gas emissions, compared to a business-as-usual scenario and conditional upon international support.

Power Generation Capabilities

In 2021, state utility, DABS Da Afghanistan Breshna Sherkat[6] used renewable energy (84.6 %) and oil (15.4) to generate electricity in Afghanistan. Hydropower is the dominant type of renewable energy used to generate electricity in the country.

Recent renewable energy projects in Afghanistan include:

  • 100 MW Hydropower Project – Russian company, Technopromexport is continuing work on the Naghlu hydropower project which is located in the northeast region of the country.
  • 10 MW Solar Project – In September 2019, Indian company, Dynasty commissioned the Kandahar solar power plant at a site approximately 300 miles southwest of the nation’s capital, Kabul.
  • 5 MW Hydropower Project – In September 2021, the Afghan government commissioned the Shorabak hydroelectric dam in the northeast region of the country.


Afghanistan imports oil for power generation and transportation. In 2020, Afghanistan[7] spent U.S. $195 Million for imported refined petroleum. Afghanistan also spent U.S. $193 Million for imported electricity from Iran and Turkmenistan in 2020.

On 24 February 2022, Russia invaded Ukraine, resulting in the European Union, United States, Japan, South Korea, and Canada placing embargos on Russian exports. As a result, the price for crude oil increased by over 50% from May 2021 to May 2022.

Afghanistan has experienced a dramatic increase in inflation in 2022 as a result of volatile oil prices. The nation’s inflation rate decreased[8] to 13.6% in September 2022 from 16.7% in the previous month

Afghanistan has significant undeveloped renewable energy resources, including hydropower, wind, solar, and biomass. The solution to volatile oil prices and inflation is renewable energy for Afghanistan.


Jack Kerfoot

Website – “Our Energy Conundrum”


Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on numerous energy related topics.


[1] Afghanistan Population (2022) –  December 8, 2022,

[2] World Bank, Access To Electricity (% Population) – Afghanistan

[3] Gross Domestic Product By Country 2021 – Worldometer

[4] Observatory of Economic Complexity (OEC) – Afghanistan

[5] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”

[6] Our World In Data, Afghanistan: Energy Country Profile by Hanna Ritchie and Max Roser

[7] The Observatory of Economic Complexity (OEC) – Afghanistan Imports

[8] Trading Economics, “Afghanistan Inflation Rate,” November 2022 Data

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