This is Part Five (last part) of the chapter on Turkmenistan of the recently issued CAREC Energy Outlook 2030 report.
The complete report is available at this link: https://www.adb.org/sites/default/files/publication/850111/carec-energy-outlook-2030.pdf
Policy Recommendations
While Turkmenistan’s government has taken some steps toward upgrading the country’s infrastructure, decarbonizing the energy sector, and introducing new legislation, further efforts are required to make tangible progress:
(i) Implement an infrastructure modernization program. Upgrading infrastructure (especially T&D assets), and developing action plans to reduce electricity losses and gas leakages is recommended.
(ii) Explore options for a potential reconnection of Turkmenistan to the Central Asian Power System. The Central Asian Power System (CAPS) was initially developed in the Soviet Union to connect Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. In its current form, it can help expand energy trading and boost regional energy security across Central Asia. Turkmenistan disconnected from CAPS in 2003. The Asian Development Bank has approved a technical assistance grant to support an increase in regional power trade in CAPS. It also aims to study the potential reconnection of Turkmenistan to CAPS.
(iii) Reinforce efforts to deploy renewable energy projects. Both policy and legislation changes demonstrate Turkmenistan’s clear commitment to transitioning to renewable energy generation to decarbonize the power generation sector. The establishment of special incentive schemes for renewable energy projects, such as feed-in tariffs or a capacity auction on a least-cost basis, would potentially lead to a higher investment inflow due to higher transparency in the tariff setting process.
(iv) Improve the investment climate for the private sector. Recently adopted legislation in renewable energy generation is a necessary step toward opening investment opportunities for the private sector. However, additional action is required to improve Turkmenistan’s appeal to investors, including the establishment of a clear tariff structure, shortening the lengthy administrative processes, and opening the electricity generation market.
(v) Study possibilities and create a regulatory framework for the decarbonization of the gas sector. To realize Turkmenistan’s hydrogen potential in the longer term, conducting feasibility studies and launching pilot projects can be crucial at this early stage. The country has taken initial steps in this direction.
Background Papers
British Petroleum. 2021. Statistical Review of World Energy 2021. London. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2021-full-report.pdf
CIS Internet Portal. 2019. Economic Strategy of Turkmenistan: Priorities and Forecasts (in Russian). 15 November. https://e-cis.info/news/567/84559/
Climate Watch. Global Historical Emissions. https://www.climatewatchdata.org/ghg-emissions?breakBy=countriesandend_year=2018%C2%AEions=TKM%C2%A7ors=total-excluding- lucfandsource=CAITandstart_year=1850 (accessed 15 September 2021).
Enerdata. https://www.enerdata.net/
EU4ENERGY. http://eu4energy.iea.org/Pages/Home.aspx
International Energy Agency (IEA). Turkmenistan: Energy Data. https://www.iea.org/countries/turkmenistan (accessed 20 August 2021).
Government of Turkmenistan. Statistical Yearbook 2018. Ashgabat.
- C. King and J. C. J. M. van den Bergh. 2019. Normalisation of Paris Agreement NDCs to Enhance Transparency and Ambition. Environmental Research Letters. 14 (8). https://iopscience.iop.org/article/10.1088/1748-9326/ab1146/pdf
The European Commission. Action Document for “EU Support to Sustainable Energy Connectivity in Central Asia.” https://www.gtai.de/resource/blob/222522/5e9adb7f81f996a5472c998c6c04188e/PRO20200226222512-Annex.pdf
United Nations Turkmenistan. 2021. UNDP Facilitates the Development of Renewable Energy in Turkmenistan. Press release. 3 March. https://turkmenistan.un.org/en/123047-undp-facilitates-development-renewable-energy-turkmenistan
United States Energy Information Administration. Turkmenistan Primary Energy Data. https://www.eia.gov/international/overview/country/TKM (accessed 20 August 2021).
References
Academy of Sciences of Turkmenistan. 2021. Moving Towards “Green” Economy (in Russian). 2 February. https://science.gov.tm/news/20210203news-2021-02-03-1/
Asian Development Bank (ADB). Turkmenistan–Afghanistan–Pakistan–India Natural Gas Pipeline Project. https://www.adb.org/projects/44463-013/main
ADB. 2018a. Power Interconnection Project to Strengthen Power Trade Between Afghanistan, Turkmenistan, Pakistan. News release. 28 February. https://www.adb.org/news/power-interconnection-project-strengthen-power-trade-between-afghanistan-turkmenistan-pakistan
ADB. 2018b. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Administration of Technical Assistance Grant to Turkmenistan for the National Power Grid Strengthening Project. Energy Sector Assessment (accessible from the list of linked documents in Appendix 2). Manila (Loan 3734-TKM). https://www.adb.org/sites/default/files/linked-documents/49370-002-ssa.pdf
AzerNews. 2019. World’s First Plant to Manufacture Synthetic Fuel from Gas Opens in Turkmenistan.
28 June. https://www.azernews.az/region/152815.html
AzerNews. 2021. UNDP Plans to Support Development of the Use of Renewable Energy Sources in Turkmenistan. 8 September. https://www.azernews.az/region/183048.html
Berksan. Mary Amonia Fertilizer Plant. https://www.berksan.com/en/mary-amonia-fertilizer-plant-1200-tonnes-ammonia-and-1925-tonnes-urea-per-day-t18
Business Turkmenistan. 2020. Turkmenistan Increases Export of Fertilizers by 73%. 10 September.
https://business.com.tm/post/6120/turkmenistan-increases-export-of-fertilizers-by-73
Central Asia News. 2021a. Turkmen Scientist Ilyasov Speaks about Industrial Potential of Hydrogen.
Central Asia News. 2021b. Turkmenistan Might Become Hydrogen Leader. 31 August. https://centralasia.news/11041-turkmenistan-might-become-hydrogen-leader.html
Fitch Solutions. 2020a. Turkmenistan Oil & Gas Report – Q4 2020. London. https://www.fitchsolutions.com/
Fitch Solutions. 2020b. Turkmenistan Power Report – Q4 2020. London. https://www.fitchsolutions.com/
Government of Turkmenistan. 1992. Law on Investment Activities in Turkmenistan. Ashgabat.
https://investmentpolicy.unctad.org/investment-laws/laws/32/turkmenistan-investment-law
Government of Turkmenistan. 2008. Law on Foreign Investments (2019 edition). Ashgabat.
https://cis-legislation.com/document.fwx?rgn=24318
Government of Turkmenistan. 2019a. Law No. 104-V of 2014 on Electricity (2019 edition). Ashgabat.
https://policy.asiapacificenergy.org/node/766/portal
Government of Turkmenistan. 2019b. Law on Licensing of Certain Types of Activity (in Russian). Ashgabat.
http://extwprlegs1.fao.org/docs/pdf/tuk105943.pdf
Government of Turkmenistan. 2020. Law No. 208-III of 2008 on Hydrocarbon Resources (2021 edition). Ashgabat. https://policy.asiapacificenergy.org/node/764
Government of Turkmenistan. 2021. Law on Renewable Energy Sources. Ashgabat. https://cis-legislation.com/document.fwx?rgn=130998
International Energy Agency (IEA). Data and Statistics. https://www.iea.org/data-and-statistics/data-tables?country=TURKMENIST&energy=Balances&year=2019 (accessed 20 August 2021).
International Trade Administration, United States Department of Commerce. 2020. Turkmenistan
– Country Commercial Guide: Oil and Natural Gas Refining. https://www.trade.gov/country-commercial-guides/turkmenistan-oil-and-natural-gas-refining
- Iwaszczuk, J. Wolak, and A. Iwaszczuk. 2021. Turkmenistan’s Gas Sector Development Scenarios Based on Econometric and SWOT Analysis. Energies. 14 (10). 2740. https://doi.org/10.3390/en14102740
Oxford Economics. https://www.oxfordeconomics.com/ (accessed 16 September 2021).
Radio Free Europe/Radio Liberty. 2018. Turkmenistan Cuts Last Vestiges of Program for Free Utilities. 26 September. https://www.rferl.org/a/turkmenistan-cuts-last-vestiges-of-program-for-free-utilities/29511308.html
- Seitgeldiev. 2018. Regional Workshop on Policy Support Mechanisms in Central Asia. Presentation prepared for the Academy of Sciences of Turkmenistan, Solar Energy Institute. Baku, Azerbaijan. 17 October. https://www.irena.org/-/media/Files/IRENA/Agency/Events/2018/Oct/6-Turkmenistan-country-presentation–Nurgeldi-Seytgeldiyev.pdf?la=en&hash=85A65F3DBF92ECE9343EDE6719D308F968C8E573
United Nations Development Programme (UNDP). 2012. Improving Energy Efficiency in the Residential Buildings Sector of Turkmenistan. Inception report. https://info.undp.org/docs/pdc/Documents/TKM/EERB_Inception%20Report.pdf
UNDP. 2014. Renewable Energy Snapshot: Turkmenistan. New York. https://www.undp.org/eurasia/publications/renewable-energy-snapshots
United Nations Framework Convention on Climate Change (UNFCCC). 2016. Intended Nationally Determined Contribution of Turkmenistan in Accordance with Decision 1/CP.20 UNFCCC. https://unfccc.int/sites/default/files/NDC/2022-06/INDC_Turkmenistan.pd .
United States Energy Information Administration (US EIA). Energy Intensity Data. https://www.eia.gov/international/data/world/other-statistics/energy-intensity-by-gdp-and-population (accessed 4 September 2021).
US EIA. Turkmenistan Data. https://www.eia.gov/international/data/world (accessed 20 August 2021).
/// nCa, 25 January 2023
CONCLUDED.
Turkmenistan Energy Outlook 2030 – Chapter from CAREC Report – Part One
Turkmenistan Energy Outlook 2030 – Chapter from CAREC Report – Part Four