World Small HydropoWer development report 2013

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AFGHANISTAN

Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP).

2013 © UNIDO and ICSHP

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This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners.

While every care has been taken to ensure that the content is useful and accurate, UNIDO and ICSHP and any contributing third parties shall have no legal liability or responsibility for the content or the accuracy of the information so provided, or for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information.

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Recommended citation: 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.

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3 Asia 3.3 South Asia

3.3.1 Afghanistan Lara Esser, International Center on Small Hydro Power

Key facts

Population 30,419,9281

Area 652,000 km2

Climate Arid to semiarid; cold winters and hot summers

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Topography Mostly rugged mountains (highest point: Noshak peak, 7,485 m); plains in north and southwest

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Rain pattern

Average annual rainfall: 285 mm. Dry and wet season vary according to location.

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Electricity sector overview The power sector infrastructure in Afghanistan is in dismal condition as a result of unrelenting conflict over the past three decades. Afghanistan's annual electricity consumption per capita is among the lowest in the world, according to the Power Sector Strategy at about 27 kWh or even lower at 18.50 to 19.25 kWh per capita according to other sources.

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The Government of Afghanistan seeks to reconstruct the ruined electricity infrastructure to meet the demands of its growing population. The Government and multilateral and bilateral donors (United States Agency for International Development, Asian Development Bank and the World Bank) have planned to import electricity from Central Asia in order to increase domestic supply by about 300 MW by the end of 2015. This electricity will be carried by the new transmission system known as the Northeast Transmission Power Systems (NEPS) under construction. The ultimate goal of the Afghan Ministry of Energy and Water’s (MEW) Power Sector Plan is to become a net power exporter from 2022 onwards, since Afghanistan possesses natural gas resources, oil and condensate reserves, and coal reserves. The Power Sector Strategy (2007) indicates a country-wide electricity access rate of 6 to 10 per cent in 2007, to be increased to almost 25 per cent by 2010 and to 33 per cent by 2015. In urban areas the Strategy plans to increase the access rate from an estimated 27 per cent in 2007, to 77 per cent by 2010, and almost 90 per cent by 2015. Figures for electricity access vary widely. The Power Sector Strategy estimates power coverage to be over 70 per cent in urban areas, including privately owned diesel-powered generators. Twenty per cent of the population has access to public power (grid-supplied) on certain days for a limited number of hours.

Nationally, seven grids distribute power, with supply coming from domestic hydropower generation, imported power and thermal generation. The plan includes the installation of diesel generators in various cities, where no alternatives to electricity are available. In the long term, however, most diesel generation should be replaced with other less costly alternatives. The Inter-Ministerial Commission for Energy (ICE) Capacity Building Strategy (February 2011) announced the following goals to be pursued at the national level:

By end 2011: electricity will reach at least 65 per cent of households and 90 per cent of non-residential establishments in major urban areas and at least 25 per cent of households in rural areas.

By end 2011: at least 75 per cent of the costs will be recovered from users connected to the national power grid.

By 2013 to 2015: energy supply of 1,800 MW (of which 1,200 MW are from domestic production), 85 per cent urban and 40 per cent rural coverage (both commercial and households), 95 per cent collection rate and 45 per cent reduction in technical losses

Note: These targets may change with the drafting of the Energy Sector Master Plan.

The total installed electrical capacity was more than 840 MW in 2010 for the country including National Solidarity Programme projects. The installed capacity in rural areas is estimated at roughly more than 100 MW, most of which is mini and small hydropower as well as diesel generators. Not included are private diesel generators that are not registered within the MEW or other databases.

Figure 1 Electricity generation in Afganistan Source: Farhad

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Historically, most power generation in Afghanistan has been based on hydropower (figure 1), and the rest from thermal sources (e.g. coal and natural gas). While large hydropower plants are on-grid in Afghanistan, micro hydro and solar based power systems also provide off-grid supply.

4 Sources of

energy in the villages further from the grid include micro hydropower, diesel generation, candles, batteries, solar lanterns, and hurricane lamps for light and biomass for cooking.

72.8%

26.0%

1.2%

0% 20% 40% 60% 80%

Imported

electricity

Hydropower

Thermal

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Selected small hydropower projects and programmes Rural donor projects Description

USAID funded by the Alternative Development Programme —Eastern Region (ADP/E)

Support of the construction of the Dodarak micro hydro (60 kW) – approximately US$107,000—including US$17,000 for local labour—to engineering and construction works. The plant was opened in April 2009 and is expected to remain functional for the next 40 years. The Community Development Council (CDC) of Dodarak village has implemented a transparent system for managing electricity accounts. Each family pays Af 3 and each business Af 5 for one kilowatt hour of electricity. The CDC collects the money, which is used to pay the power plant technicians and maintain the plant. If revenue exceeds regular expenses, the CDC can allocate funds for other development projects in the village.6

U.S. Army Corps of Engineers (USACE) Since 2006

Project aims to train, manufacture and install micro hydropower plants in isolated Afghan villages and connect the villages to the grid. The construction of 105 units in seven of 34 Afghan provinces until July 2011 was planned. The average system has a capacity of 10 kW, but the largest one, Daste Riwat plant has a capacity of 130 kW. All the components of this project were fabricated locally, apart from the imported alternators.7

Financed by Japan Fund for Poverty Reduction (JFPR)

Development of four mini hydro plants in Bamyan and Badakhshan Provinces, each about 500 kW, of a total capacity of 2 MW. The micro hydropower plants are expected to provide basic infrastructure in support of improving services, increasing productivity, facilitating income generation, and contributing towards improved health and environmental protection through increased access to electricity.3

National Solidarity Program (NSP) funded by World Bank

Together with local CDCs, over 500 micro hydro projects were built between 2003 and 2007. CDCs participation has involved operations and maintenance, established viable systems of cost-recovery, in return providing sustainability4

Source: DAI-International Development Company6, Sgt. O’ Connor7, Asian Development Bank3 and Ministry of Energy and Water, Afghanistan4

Small hydropower sector overview and potential The 2011 draft Afghanistan Power Sector Strategy classified hydropower into the following capacity ranges: large >10 MW, small 1 to 10 MW, mini 100 kW to 1 MW, micro 5 kW to 100 kW and pico <5 kW. Official information on the age, number and status of small and micro hydropower plants is not available. For 2010, the National Rural Power Strategy reports that 75.14 MW of small hydropower was installed (figure 2). DAI – an international development company (2009) reported that about 160 micro hydropower plants have been installed in Afghanistan in recent years.

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The small hydropower potential in Afghanistan is estimated to be 1,200 MW. New capacity for small hydropower is expected to reach 615 MW by the end of 2014.

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Figure 2 Small hydropower capacities in Afghanistan Source: Akbar

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The Government recognizes the importance of economic growth in reducing poverty and averting future conflicts. In Afghanistan National Development Strategy (ANDS), the Government emphasized the importance of "enhancing access to cost-effective and uninterrupted power". Specifically, the Government’s draft Power Sector Strategy recognized the importance of enhancing rural energy availability and imposed an ambitious target of delivering 100 MW to electrify 25 small towns and rural villages by 2013 through micro hydropower and decentralized stand-alone systems.

Afghanistan has projected, that it will need a minimum of 330 MW of new installed power by 2020. Based on informal assessments, it is assumed that around 30 to 40 per cent of the installed micro hydropower stations are not operational. Therefore, if taking into account the possible failure rate of 20 per cent, approximately 400 MW of new operational capacities will be needed by 2020.

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The National Priority Program One (Component D) Energy for Rural Development in Afghanistan (ERDA) aims to support rural communities not only to install energy systems, such as micro hydropower plants, but also to foster productive use of electricity for generating employment in rural areas. Besides micro hydropower and biogas that have been promoted, improved water mills to replace less efficient traditional water mills, solar photovoltaic and thermal systems, will be also included (ANDS Priorities and Implementation Plan, Vol. II). A robust micro hydropower industry already exists in Afghanistan. It has at least six turbine manufacturers.

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Renewable energy policy The MEW as well as the Ministry of Rural Rehabilitation and Development (MRRD) are the governmental focal points for rural energy development. MEW has the mandate to develop renewable energy in urban areas, as well as plan for rural energy supply on the provincial level and implement it at the provincial and district centre-level. The MEW created a Renewable Energy Directorate (RED) in July 2009. At the provincial level, MEW is represented by the Water Department until full restructuring of Da Afghanistan Breshna Sherkat (DABs).

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The MRRD uses rural energy supply as a means for community development. It started with a Rural

1200 MW

75.14 MW

0 200 400 600 800 1000 1200 1400

SHP potential

SHP installed capacity

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Livelihoods and Energy Department, which was mainly implementing the National Solidarity Programme’s rural energy projects. After the set-up of the Energy for Rural Development in Afghanistan (ERDA), the department has been transformed into the Rural Energy and Enterprise Department (REED). MRRD has the mandate to plan and implement rural energy supply at the village level. Renewable energy offers great hope for Afghanistan, especially for its rural electrification. Since the rural population is dispersed, renewable energy offers the best solution for electrification for the majority of Afghanistan’s rural population.

9 However, at the

moment, there is no renewable energy policy in place yet. The ICE appointed a sub-committee that was being advised in technical and administrative terms by the German Agency for Technical Cooperation’s Energy Programme in Afghanistan. A draft version of ‘Afghanistan Rural Renewable Energy Strategy Action Plan until 2014 and Development Objectives until 2020’ was finalized in September 2010. Solar power is another option as Afghanistan is a country with one of the highest irradiation values on earth. Solar photovoltaic (PV) can be the most economic for small loads, such as lighting in the absence of a connection to the main power grid and/or mini grid. A solar home system to provide basic lighting may cost up to US$7,000 per kW, whereas a micro hydropower station, which can supply household and productive uses may only have investment costs around US$3,000 per kW. However, construction time and investment costs are also factors to consider. The Afghanistan National Rural Renewable Energy Strategy (2010) focuses on economic development in rural areas through the provision of high quality electricity based on renewable energy technologies, including micro hydropower. It aims to be less of a master plan, and more of an adaptable work plan. It foresees increasing energy needs and possible insufficient electricity production from PV systems or isolated wind operations and suggests the use of base load power plants such as mini hydropower to improve the energy access situation in rural zones of the country. 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 operation and maintenance (O&M) of small hydropower plants (more than one MW) and basic electrification

schemes (below 100 kW).8

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

Barriers to small hydropower development Barriers to small hydropower 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:

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

Lack of important data for Afghanistan. For example, figures like 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 in 2007.

4 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.

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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 O&M 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.

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Instability in the country, that has been mentioned as a constraint to the timely implementation of the Power Sector Strategy in some places.

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

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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

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energy supply 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 licence.

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Note i. Da Afghanistan Breshna Sherkat (DABS), has replaced Da Afghanistan Breshna Moassessa (DABM), the former national electric utility in Afghanistan. DABS engages in the generation, import, transmission and distribution of power. The company is an independent and autonomous corporation, owned by the government of Afghanistan. References 1. Central Intelligence Agency (2012). The World Factbook. Available from www.cia.gov/library/publications/the-world-

factbook/. 2. World Bank Data (n.d.). Data: Afghanistan: South Asia. Available from

http://data.worldbank.org/country/afghanistan. 3. Asian Development Bank (2008). Proposed Grant Assistance Islamic Republic of Afghanistan: Development of Mini Hydropower Plants in Badakhshan and Bamyan Provinces. Grant Assistance Report Project Number: 42094. 4. Ministry of Energy and Water, Islamic Republic of Afghanistan (2007). Draft Power Sector Strategy for the Afghanistan National Development Strategy (with focus on prioritization). Afghanistan, Kabul. 5. Farhad, H. (2011). Annual Production Report 2011. Afghanistan Energy Information Centre and United States Agency for International Development. Available from www.afghaneic.org/Data/Annual%20Production%20Reports/Annual%20Production%20Report%202011.pdf

6. DAI (2012). Afghan Villages Bolstered by Micro-Hydro Power Plant. DAI, Stories, Bethesda, Maryland, USA. Available from http://dai.com/stories/afghan-

villages-bolstered-micro-hydro-power-plant. 7. Sgt. O'Connor, M. (2011). Micro-Hydropower Brings Light to Remote Afghan Villages. Afghanistan International Security Assistance Force, Headquarters, public Affairs. Available from www.isaf.nato.int/article/isaf-releases/micro-hydropower-brings-light-to-remote-afghan-

villages.html. 8. Akbar, S. and Burhan, K. M. (2008). Small hydropower development in Afghanistan. Ministry of Energy and Water and Ministry of Rural Rehabilitation and Development. Paper presented at Asia-Pacific Hangzhou Regional Center, Annual International Training Workshop, 15 May to 23 June 2008. Hangzhou, China. 9. Afghanistan, Ministry of Energy and Water and Ministry of Rural Rehabilitation and Development (2010). Afghanistan Rural Renewable Energy Strategy Action Plan until 2014, Development Objectives until 2020. Draft Version 1. September. 10. Afghanistan Clean Energy Project (2010). Micro-Hydro Power Assessment for Nangarhar Province. 27 February to 1 March 2010. Available from www.afghaneic.org/ACEP/assessment%20reports/AC

EP%20NangarharTR3_10.pdf.

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