World Small Hydropower Development Report 2016

Islamic Republic of Afghanistan

Wor

ld S

mal

l Hyd

ropo

wer

Dev

elop

men

t Re

port

201

6

430

Electricity sector overview

Electricity generation in the Islamic Republic of Afghanistan (Afghanistan) 2013 was 1,120 GWh consisting of hydro (961 GWh), thermal (22 GWh), diesel (137 GWh), with an additional 3,458 GWh imported, making overall domestic supply 4,578 GWh (Figure 1). However, the actual demand was approximately 5,700 GWh.10

FIGURE 1

Electricity generation in Afghanistan (GWh)

137

22

3,458

961

Imports

Hydropower

Diesel

Thermal power

Source: IEEJ10

Total installed capacity is 522 MW.3 The electrification rate in Afghanistan is 43 per cent.4 Imports satisfy a significant proportion of national energy consumption

and this proportion is expected to grow. Power is imported via the North East Power System.5

In 2014 the World Bank Group’s Board of Directors approved US$526.5 million in grant and credit financing for the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) for four countries: Afghanistan, Kyrgyz Republic, Pakistan, and Tajikistan. Total cost of the project is US$1.17 billion (from the World Bank, the European Investment Bank, DFID, EBRD, The Islamic Development Bank). Official opening of the project is planned in May 2016. CASA-1000 will build more than 1,200 km of electricity transmission lines and associated sub-stations.6 Da Afghanistan Breshna Sherkat (DABS) is an independent and autonomous company established under The Corporations and Limited Liabilities Law of the Islamic Republic of Afghanistan (IROA). DABS is a limited liability company with all its equity shares owned by the Government of Afghanistan. The company was incorporated on 4 May 2008 (15 Saur 1387) and replaced Da Afghanistan Breshna Moassassa (DABM) as the national power utility. DABS operates and manages electric power generation, import, transmission, and distribution throughout Afghanistan on a commercial basis.7

Islamic Republic of AfghanistanMarcis Galauska, International Center on Small Hydro Power; Ghulam Mohd Malikyar, National

Environmental Protection Agency of the Islamic Republic of Afghanistan

3.3.1

Key facts

Population 31,627,506 4

Area 652,230 km2

Climate Afghanistan is a mountainous and very dry country located in the arid sub-tropics at 29° to 37° north of the Equator. Afghanistan has an arid and semi-arid continental climate with cold winters and hot summers. The average temperature in summer (June to August) exceeds 33°C and winter (December to February) is around 10°C. Much of the country is at very high altitudes and experiences lower temperatures all year round, with average summer temperatures not exceeding 15°C, and winter temperatures below 0°C in the highest regions.1

Topography Afghanistan is split east to west by the Hindu Kush mountain range, rising in the east to heights of 7,315 m. With the exception of the south-west, most of the country is covered by high mountains and traversed by deep valleys. Most of the land (some 63 per cent) is mountainous, using formal criteria based on slope and elevation, and more than a quarter (27 per cent) lies above 2,500 m.1

Rain pattern More than 50 per cent of the country receives between 100 and 300 mm per year, the remaining 50 per cent, except Ghore and Bamyan, receive 300-800 mm per year.1 On average, the wettest month is March (53 mm) and the driest is September (5.3 mm).11

General dissipation of rivers and other water sources

During the dry season most rivers in Afghanistan become little rivulets. The rivers are mostly supported by mountain streams. These rivers have decent flows in spring, when snow on the mountains melts. An exception among Afghan rivers, the Kabul River, maintains a steady flow year-round. It flows east into Pakistan to merge into the Indus River. The longest river in Afghanistan, the Helmand River, originates in the Central Hindu Kush mountains. The river flows past the south-west region of the country, ending in Iran. Rising in central Afghanistan, the Harirud River moves west and north-west to the border with Iran. The water of the Harirud River is used extensively for irrigation purposes in the Herat region.2

Sout

hern

Asi

a

3.3

431

Seven regional electricity grids exist with supply coming from domestic hydro and thermal generation and imported power. The electricity infrastructure has suffered considerable damage due to decades of war and operational neglect. Blackouts are frequent because power plants are not fully functional and the transmission and distribution networks have been depleted. High electrical losses in distribution and transmission networks contribute to further inefficiencies in the energy supply chain. Despite Afghanistan having the lowest per capita energy consumption in the South Asia region, demand continues to outstrip supply in every fuel category. Average price for electricity is approximately US$0.17/kWh.

Recent government and donor initiatives have been focused on the expansion and rehabilitation of the electricity sector in the major economic hubs of Afghanistan as well as the provision of basic services in rural areas. Efforts have also been made to:

} Improve the supply of natural gas;

} Increase availability of hydro-electric generation;

} Rehabilitate the electricity transmission and distribution systems;

} Develop RES in rural and remote areas;

} Increase low-cost power imports; and

} Improve the capability of energy sector institutions.5

Small hydropower sector overview and potential

The definition of small hydropower (SHP) in Afghanistan is up to 10 MW. Installed capacity of SHP in Afghanistan is 80 MW. Between World Small Hydropower Development Report (WSHPDR) 2013 and WSHPDR 2016, installed capacity has increased by approximately 6 per cent.

FIGURE 2

SHP capacities 2013-2016 in Afghanistan (MW)

Potential

capacity

Installed

capacity

2016 2013

1,200

1,200

80

75

Sources: WSHPDR 2013,9 IJHD8

Note: The comparison is between data from WSHPDR 2013 and WSHPDR 2016.

The SHP potential in Afghanistan is estimated to be 1,200 MW. While past studies have indicated that around 80 MW of small hydro is in operation, there could be more than 100 micro hydro schemes not included in the total.

The Energy Supply for Rural Areas programme, carried out with German assistance, entails building several mini hydro projects with more in the planning stages. General surveys and construction works are taking place in the Paktia, Kunar, Bamyan and Panjshir districts, to assess potential small and micro hydro sites. Micro hydro plants have also been tested in Badakshan province.8

Legislation on small hydropower

The National Rural Energy Strategy (2010) includes an Action plan until 2014, with the following actions:

} Training the private sector (hydropower turbine manufacturers, operators and hydropower engineering companies) on the delivery of high quality energy services in rural areas.

} Creating guidelines for the operation and maintenance of SHP plants (more than 1 MW) and basic electrification schemes (below 100 kW).

} Adapting international standards in rural renewable energy to Afghan National Standards via the Afghan National Standards Authority.

Renewable energy policy

The Environment Law of Afghanistan, which was promulgated in 2007 and is based on international standards, covers most of the aspects of natural resources management. The law requires planning for sustainable use, rehabilitation and conservation of biologic diversity. Environmental Impact Assessment (EIA), promulgated in 2008, established the process of conducting environmental assessments for development acitivities.8

The limited reach of regional grids means that smaller scale off-grid renewable energy (RE) technologies, such as small hydro, solar PV, solar thermal and wind, can play a significant role in the provision of energy. Afghanistan has significant renewable resources, primarily in the form of hydropower. It is estimated that 23,000 MW of hydropower resource potential are available. In mountainous areas there is sufficient head to make even very low flow streams effective, and glacier-fed streams provide year-round minimum water flow.

Solar resources are also good given the high altitudes and approximately 300 days of sunshine a year, which provide about 6.5 kWh/m2/day. The wind power potential is high in Herat province but less so in other regions. Geothermal resources may also be feasible in the longer term.5

Barriers to small hydropower development

Barriers to SHP in Afghanistan should be seen in the wider context of barriers to rural renewable energy expansion, since micro to small hydropower is mostly used in rural areas:

Wor

ld S

mal

l Hyd

ropo

wer

Dev

elop

men

t Re

port

201

6

432

} Weakness of the private sector for investment in rural energy, despite an increase in companies and entrepreneurs in recent years.

} Lack of important data for Afghanistan. For example, figures such as the total number of urban households, total number of non-residential establishments, and total number of rural households, as well as total cost of power import, generation, transmission, distribution, operation, maintenance and administration for the entire country, were not available. The demand for data such as the total actual electricity generation and the electricity generated based on renewable energy was reiterated in the National Rural Renewable Energy Strategy (2010) under objectives and indicators until 2020.

} Lack of involvement of international financial institutions with regard to support to the private sector in this area.

} Lack of concessionary loans (with sovereign guarantees) provided for rural electrification projects and major organizations with international involvement in infrastructure development, environmental protection and support for private sector development.

} Deficits in cash-flow: The Draft Electricity Law includes the agreed principle that the main instrument for financing operation and maintenance

(including mini repairs of key components) should be cash-flow finance. Retail tariffs for electricity supply need to cover all operation and maintenance costs, but in reality, consumers are either unwilling or unable to pay for the full cost of supply, resulting in cash-flow deficits, and often a critical financial position of the utility or operator of an isolated mini-grid.

} Instability in the country is a constraint to the timely implementation of the Power Sector Strategy in some places.

} Limited technical human resources capacity (i.e. not enough trained personnel able to produce improved units from standard technical drawings).

} Licensing requirements: The draft Rural Renewable Energy Strategy requires operators of isolated mini-grids to be licensed, while considering affordability and financial requirements of the licensee, and the costs of four energy supplies based on the type of source. According to the Draft Electricity Law (2008), Article 13.9, there are no license requirements for the establishment/construction of electricity supply infrastructure. Furthermore, according to Article 14.3.3, electricity service companies that do not serve more than 1,000 customers and do not own more than 2 MW of installed capacity, based on their own sources of generation, do not require a generation or distribution license.9

References

1. United Nations Food and Agriculture Organization (FAO) (2012). Afghanistan. Aquastat database. Available from www.fao.org/nr/water/aquastat/countries_regions. 2. Afghanonline (N/A). Afghanistan rivers& lakes.Available from http://www.afghanonline.com/majorrivers/. 3. The Institute of Energy Economics, Japan (2013). DABS Presentation. Afghanistan Energy Sector Overview.Available from https://eneken.ieej.or.jp/data/5015.pdf.4. World Data Bank (2014). World Development Indicators. Afghanistan. Available from http://databank.worldbank.org/data/reports.aspx?source=2&country=AFG&series=&period=. 5. REEEP (2012). Afghanistan. Available from https://www.reeep.org/afghanistan-2012.6. The World Bank (2014). World Bank Group Invests in Energy Trade between Tajikistan and South Asia. Available from http://www.worldbank.org/en/news/press-release/2014/03/27/world-bank-group-invests-in-

energy-trade-between-tajikistan-and-south-asia.7. Da Afghanistan BrishnaSherkat (n.d.).About us.Available from http://www.dabs.af/pages/aboutdabs/en.8. The International Journal on Hydropower & Dams (IJHD) (2015). World Atlas & Industry Guide, 2015.Aqua-Media International, Wallington, UK.Available from www.hydropower-dams.com. 9. Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report 2013.United Nations Industrial Development Organization; International Center on Small Hydro Power.Available from www.smallhydroworld.org. 10. The Institute of Energy Economics, Japan (2014). Afghanistan energy report.Available from https://eneken.ieej.or.jp/data/5585.pdf. 11.World Bank (2016). Average Monthly Temperature and Rainfall for COUNTRY, 1990-2012, Climate Change Knowledge Portal database. Available from http://sdwebx.worldbank.org/climateportal.