Turkmenistan
With a cumulative score of 0.52, Turkmenistan ranks number 107 among emerging markets and number 136 in the global ranking.
- Emerging markets
- Asia-Pacific
0.50 / 5
Power score
0.34 / 5
Transport score
0.73 / 5
Buildings score
Low-carbon strategy
Net-zero goal and strategy
Turkmenistan does not have a net zero goal or strategy.
Nationally Determined Contributions (NDC)
Turkmenistan in October 2016 submitted an Intended Nationally Determined Contribution (INDC), which does not include quantifiable targets. The government in May 2022 approved the updated NDC – a country’s plan to achieve the goals set out in the 2015 Paris Agreement – for submission to the Council of the United Nations Framework Convention on Climate Change.
Fossil fuel phase-out policy
Turkmenistan does not have a fossil fuel phase-out policy.
Power
Power policy
Turkmenistan has very little policy around renewable energy. The country is primarily fueled by natural gas and has very large natural gas reserves, making renewables unappealing. Its 2014 national strategy on climate change expressed an intention to increase renewables, but there has not been any concrete follow-up policy.
Power policies
Power prices and costs
From the 1990s to 2017, Turkmenistan had a program in place that provided free natural gas, electricity and water to all citizens. In 2017, the president signed a decree that limited the amount of free utilities for residents, and the country scrapped this program in 2019 due to the country’s worsening economic situation. Since access to free utilities ended, many citizens have been unable to pay their utility bills, even though power prices are among the lowest in the world.
Power market
Turkmenistan’s power market is dominated by Turkmenenergo, the state-run utility. There is no indication that third parties are able to enter any segment of the market.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
The primary barriers to doing business in Turkmenistan are the lack of policies and information. Additionally, the power fleet is aging, but modernization programs are dependent on international donor support. There is no official plan in place.
In 2022, the Ministry of Energy announced a tender for materials for solar panels; in the next few years, more tenders or installation auctions are likely to be held. However, there is little incentive for private or foreign companies to enter the country’s energy sector, as it is opaque, and completely controlled by the state with no supportive policy framework in place.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
The electric vehicle (EV) market remains at an early stage, but value-added tax is generally 15%. A zero rate applies to exports of goods (except for oil and gas) and international transport services. Contractors operating under the umbrella of the petroleum law are generally exempt from this tax.
EV policy
The government has yet to implement any substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Turkmenistan in 2011 jointly implemented the project “Improving Energy Efficiency in the Housing Sector of Turkmenistan” with the United Nations Development Program. The initiative aimed to boost the energy efficiency of residential buildings and was centered on thermal insulation and building standards.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector.
Buildings policies
Additional insights
from BNEF
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