The electrification rate in Turkmenistan is 99.6%. Electricity is mostly produced in 8 thermal power plants with an installed capacity of 3.3 GW. Electricity consumption by sector is the following: agriculture and forestry 31.8%, industry 36%, transport 2.6%, and residential 21%. Turkmenistan’s energy market is controlled by the State. Primary energy shares (in 2008) consisted of 72.4% gas and 27.6% oil.

Most of the population receives natural gas and electricity for free. Those who do pay, enjoy the world’s lowest energy prices. Yet, inefficiency and waste are clearly a result of this policy. In addition, the power infrastructure, inherited from the Soviet era, is in bad shape and needs to be repaired. Power lines wasted a significant portion of electricity in 2006. The distribution system also suffers from severe power loss.

Demand for renewable energy sources in Turkmenistan is practically inexistent. Turkmenistan has relatively low potential for bio energies, hydro power, and geothermal energy. While it does have tremendous wind and solar power with 300 sunny days per year (equaling 2,00 kW/m²/yr) and wind potential equal to the country’s fossil fuel potential, its wealth of oil and gas overshadow these potentials