Two power purchase agreements have been signed in Afghanistan, clearing the way for 30 MW solar plant to be developed in Kandahar province. National utility Da Afghanistan Breshna Sherkat (DABS) entered the agreements with two companies — Turkey's 77 Construction Company and local Afghani firm, Zularistan-Baywaj — for 20-year power purchase agreements. Each company will be responsible for 15 MW.
The central government will cover 46.5% of the $47.3 million investment. The balance will be equally funded via the two companies.
DABS will pay a tariff of $0.085 per kWh to purchase electricity generated by the projects with the Afghan government adding a subsidy payment of $0.065 per kWh.
Since there will be no battery storage or back up of this clean power generation, the projects will generate power during the day for businesses. If there is extra power generation, it will be distributed among households and commercial areas of Kandahar, stated DABS.
According to a DABS Feb. 18 press release, it will also start construction of what it calls "the first solar power plant" in Naghlu, located about 70 km east of Afghanistan's capital Kabul. In November 2017, the Asian Development Bank (ADB) committed a $44.76 million grant for the 20 MW project (see Afghanistan PV Plant Gets ADB Support). Construction is scheduled to begin on March 1 with commissioning two years later. Once fully operational, it is expected to generate about 43,000 MWh of solar power generated electricity annually.