KABUL (IRNA) -- Afghanistan was formally accepted as an observer of the Energy Charter Treaty (ECT) of the European Union under an agreement signed here Saturday by the Dutch ambassador to Afghanistan, on behalf of the European Union and Afghanistan's deputy foreign minister for economic affairs.

According to IRNA correspondent in Kabul, the prime goal of the agreement is to consolidate the rule of law in energy-related issues in Afghanistan.

The treaty paves the way for its 51 members to cooperate in the fields of investment, production and transmission of energy across common borders of the member states.

Afghanistan's membership in the treaty may lead to an increase in investment in energy production in that country since its members are committed to safeguarding investment against political risks.

Iran, China and Pakistan have observer status in the treaty.

Afghanistan's Deputy Foreign Minister for economic affairs Mahmud Seighal expected that his country's membership in the treaty will increase the exchange in electricity with regional states and improve the energy facilities without affecting the environment.

Afghan Minister of Energy and Water Mohammad Ismail-khan said that his country's energy sector suffered the most during the civil war and Jihad against Soviet army.

He pointed out that Afghanistan currently has the least energy production in the world.

He told IRNA that his country is suffering from shortage of electricity despite the fact that it has very good potential for power generation. He added, "Afghanistan has untapped potential for producing 3000 MW hydro-electric and 1000 MW of thermo-electric power."

While the demand in his country stands at about 1000 MW, it can only generate 240 MW of electricity domestically, he concluded.