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Since ancient times, power derived from moving water has been harnessed as a renewable energy source, becoming widely used for generating electricity in the late 19th century. Currently, international organizations such as the World Bank views hydropower as a desirable means for economic development, since, like solar and wind, it does not add carbon to the atmosphere.

It has been estimated that Afghanistan has the potential to produce up to 23,000 MW of hydropower,  but to date only 2% of this potential has been developed. While Afghanistan already serves as the main transit route between Central Asia and South Asia, it could become not only a transit country, but an energy exporter.