A group of Chinese investors met with President Ashraf Ghani on Saturday to discuss the possibility of establishing a coal-fired power plant in the country.
The Presidential Palace (ARG) said in a statement the group plans to invest $400 million in the energy-generating project.
The plan is for the coal power plant to generate 300 megawatts of electricity.
"In the meeting, President Ghani articulated potentials of natural resources as well as investment opportunities in the energy sector in Afghanistan," the statement read.
The statement noted that Ghani has instructed the Afghanistan Investment Facilitation Unit to assess the plan "in coordination with Da Afghanistan Breshna Sherkat to facilitate investment opportunities for the group and to share the outcome with the Office of the President."
Energy in Afghanistan is provided by hydropower followed by fossil fuel and solar power.
According to Da Afghanistan Breshna Sherkat (DABS), approximately 35% of Afghanistans population has access to electricity.
Currently, Afghanistan generates about 600 megawatts (MW) of electricity from several hydroelectric plants as well as using fossil fuel and solar panels.
However, more than 670 MW more is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan.