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

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

  • Status Under implementation
  • Date approved 21 Aug 2020 at B.26
  • Est. completion 19 Oct 2025
  • ESS Category Category B

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. 

Total project value


Tonnes of emissions avoided






Result areas

Project timeline


25 Jul 2016 - 1489 days

Concept note received

25 Jul 2016

Funding proposal received

28 Feb 2017

Cleared by GCF Secretariat

22 Apr 2019

Legal opinion on AE's Internal Approval

01 Jun 2020

Cleared by iTAP

28 Jul 2020


21 Aug 2020 - 60 days

Approved by GCF Board

21 Aug 2020

FAA executed

27 Aug 2020

Under implementation

19 Oct 2020 - 1,233 days so far

FAA effective

19 Oct 2020

Disbursement - USD 3,991,788

18 Jan 2021


19 Oct 2025 - 594 days to go

One region

  • Asia-Pacific

One country

One priority group

  • Least Developed Countries
  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing23% disbursed

GrantUSD 17,198,843
Total GCF Financing
USD 17,198,843


Co-FinancingGrantUSD 1,000,000
Co-FinancingGrantUSD 1,000,000
Co-FinancingIn-kindUSD 2,200,000
Total Co-Financing
USD 4,200,000

GCF Contacts

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Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
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Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6714 (KST)
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Accredited Entity

United Nations Development Programme
Mr. Pradeep Kurukulasuriya

Executive Coordinator and Director, Global Environment Finance
304 East 45th Street, FF-9th Floor, New York, NY, United States
Phone +1 (212) 906-5884
Mr. Robin Merlier

Environmental Policy Specialist Global Environmental Finance, Bureau for Policy and Programme Support (BPPS)/Global Policy Network
Phone +1 2129065842
More contacts

National Designated Authority