Turkmenistan Business & Economy - The Times Of Central Asia

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Renewable Energy

Central Asia’s Renewable Energy Boom Faces Growing Grid Challenges

Central Asia is rapidly expanding its renewable energy sector, with solar power emerging as one of the key drivers of the region’s energy transition. However, a new report by the Eurasian Development Bank (EDB) warns that accelerated deployment of renewable energy, without matching investment in grid infrastructure, reserve capacity, storage systems, and market reforms, could increase systemic risks and raise overall electricity costs. The warning comes as electricity demand across Central Asia continues to grow steadily. The region’s population now exceeds 80 million, and power consumption is rising by 3% to 6% annually. According to the EDB, electricity demand could increase by nearly 40% by 2030, reaching 370 billion kilowatt-hours annually, up from approximately 270 billion kilowatt-hours today. Governments across the region have announced ambitious renewable energy targets for the coming decade. Uzbekistan plans to install more than 25 gigawatts of renewable energy capacity by 2030, including solar and wind generation. Kazakhstan aims to commission 8.4 gigawatts of renewable energy by 2035, while Kyrgyzstan plans to add 3.65 gigawatts of solar capacity and 400 megawatts of wind power over the same period. Tajikistan is targeting 2 gigawatts of solar and wind generation by 2030, while Turkmenistan has announced plans for 300 megawatts of solar power capacity. Yet the region’s transition toward cleaner energy sources presents a growing challenge: electricity demand is increasing faster than power systems are adapting to accommodate large volumes of variable renewable generation. Solar energy production peaks during daylight hours, creating fluctuations that conventional power systems must manage. In the morning, before solar panels begin generating at full capacity, electricity demand is largely met by hydropower plants and thermal generation fueled by coal or natural gas. As solar output rises during the day, conventional plants must reduce generation or temporarily shut down. After sunset, when electricity consumption remains high but solar production falls to zero, conventional generators must rapidly increase output to stabilize the system. These abrupt shifts create operational challenges and increase costs for grid operators. According to the EDB’s report, Power Sector of Central Asia: Modernization and Energy Transition, the main obstacles to integrating renewable energy are technical and institutional, not simply financial. If sudden drops in solar or wind generation caused by weather changes are not immediately offset, power systems risk instability and, in extreme cases, blackouts. As renewable capacity expands, grids require more flexible generation, larger reserve margins, energy storage systems, and more sophisticated operational management tools. The report notes that renewable generation is being introduced faster than supporting infrastructure can be developed. In many countries, transmission networks were not designed to accommodate a high share of variable energy sources. Weather forecasting systems also remain insufficiently accurate to support reliable real-time balancing of renewable output. Market reforms have lagged as well. Capacity markets, reserve markets, and tariff systems in several Central Asian countries have yet to evolve in ways that encourage investment in flexible backup generation and storage technologies. As a result, the report argues, the real system-wide cost of renewable energy may...

Foreign Investment

U.S. Business Delegation Discusses Investment Opportunities in Turkmenistan

Representatives of leading companies from the United States were in Turkmenistan this week, reflecting efforts to deepen the economic relationship between the two countries. Business executives and government officials from both sides met at Turkmenistan’s Chamber of Commerce and Industry in Ashgabat on June 3. The discussions followed a visit by Turkmen business leaders to the U.S. last month, during which they attended the SelectUSA Investment Summit in Maryland and other events. The forum in Ashgabat included representatives from U.S. companies Climate Compass, CNH Industrial, Coca-Cola, John Deere, Palo Alto Networks, Sig Sauer, Valley Irrigation, and Westport Trading Europe Limited, the state-run Turkmenistan News Portal reported. Nokerguly Atagulyyev, deputy chairman of the Cabinet of Ministers, led the Turkmen side. The American delegation was led by Eric Stewart, head of the U.S.-Turkmenistan Business Council and former deputy assistant secretary for Europe and Eurasia at the U.S. Department of Commerce. While participants acknowledged that American companies have been operating in Turkmenistan for many years, “the high interest of the U.S. business community in deepening effective bilateral cooperation was confirmed,” the Turkmen outlet said. It said key areas for collaboration included energy, transport, communications, the agro-industrial complex and the high-tech sector. U.S. goods trade with Turkmenistan was $152.7 million in 2025, according to U.S. government data. U.S. goods exports to Turkmenistan last year were $113.3 million, up 43.6% from the previous year, and U.S. goods imports from Turkmenistan were $39.4 million, up 169% from 2024. While those numbers are relatively low compared to the volume of trade between the U.S. and its bigger trading partners, the annual percentage increase is notable. Turkmenistan has major reserves of natural gas and oil, making it an attractive place for foreign companies to explore projects, according to the U.S. Embassy in Ashgabat. However, the embassy says, Turkmenistan has yet to “implement reforms needed to create an inviting business climate where foreign investment and foreign investors are truly welcomed.”

EBRD

Uzbekistan-Born Mansurova Named EBRD Regional Head for Kyrgyzstan, Tajikistan, and Turkmenistan

The European Bank for Reconstruction and Development (EBRD) has named Nodira Mansurova as its next regional head for Kyrgyzstan, Tajikistan, and Turkmenistan, putting her in charge of operations in three Central Asian markets where the bank has invested more than €2.5 billion combined. Mansurova will be based in Bishkek and is expected to take up the post on September 1, 2026. She will replace Ayten Rustamova, who has led the regional office since 2021. The appointment gives Mansurova oversight of one of the EBRD’s more varied regional portfolios in Central Asia. As of March 31, 2026, the bank’s cumulative investment stood at €1.177 billion in Kyrgyzstan, €1.059 billion in Tajikistan, and €327 million in Turkmenistan. The three countries present different operating environments for the bank. In Kyrgyzstan and Tajikistan, EBRD activity has included infrastructure, private-sector development, financial services, and energy-related projects. In Turkmenistan, the bank’s work has been more limited and has focused mainly on private businesses and financial-sector activity. Mansurova has worked for the EBRD since 2001. Born in Uzbekistan and now a British citizen, she has held roles in London and in several countries where the bank operates. Her previous posts included regional head of SME Finance and Development for Central Asia, based in Almaty, and head of the EBRD’s operations in Tunisia. Her new role comes as international financial institutions continue to focus on infrastructure, energy transition, private-sector growth, and regional connectivity in Central Asia.

Caspian Region

Why the Caspian Is Becoming Eurasia’s New Energy Crossroads

Russia’s war in Ukraine and instability in the Middle East are accelerating the emergence of a new Eurasian energy architecture, with the Caspian region increasingly at its center. In international politics, moments when several global crises simultaneously create opportunities for new centers of influence are rare. Today, a vast area stretching from Central Asia to the South Caucasus is experiencing just such a moment. Russia’s invasion of Ukraine has fundamentally reshaped Europe’s approach to energy security. Tensions in the Middle East have also raised questions about the reliability of traditional energy supply routes. Meanwhile, the global energy transition is driving demand for both clean-energy sources and alternative transport corridors. Against this backdrop, the Caspian region is no longer viewed as a peripheral economic space. It is increasingly emerging as a critical hub in Eurasia’s evolving energy system. Baku Energy Week 2026 shows how far this shift has come, highlighting Azerbaijan’s transformation from a traditional oil and gas producer into a strategic connector linking Central Asia, Türkiye, Europe, the United States, and the Middle East. One of the forum’s most significant political signals came in the form of a message from U.S. President Donald Trump to participants. His remarks went beyond a routine diplomatic greeting and reflected a broader shift toward a more pragmatic view of global energy policy. Trump described the United States as a strong supporter of Azerbaijan’s oil and gas industry and said the U.S.-Azerbaijan energy partnership would become more important in the years ahead. For much of the past decade, Western energy strategies appeared increasingly focused on rapid decarbonization and climate objectives. However, rising energy prices, Europe’s energy crisis, and growing global electricity demand have prompted policymakers to reassess those priorities. Trump openly reaffirmed support for the oil and gas sector and emphasized that the United States remains a long-standing energy partner of Azerbaijan. More importantly, Washington appears to recognize Baku’s strategic role in global energy security. The Trump administration increasingly views energy security as an element of geopolitical competition and is prepared to support projects that diversify supplies of hydrocarbons and critical raw materials. Speaking at the opening of Baku Energy Week, Azerbaijani President Ilham Aliyev said Trump’s policies had helped return energy policy to “normality.” Aliyev also noted that the oil and gas industry had faced sustained pressure from advocates of a rapid energy transition. It was therefore no coincidence that Azerbaijan signed a series of agreements during the forum with major American companies, including Chevron, JPMorgan, Oracle, and Comstock Resources. Particularly noteworthy was a cooperation agreement covering critical minerals and rare earth elements. For Washington, access to these resources is increasingly a matter not only of energy policy but also of technological and national security amid intensifying competition with China. In effect, Washington is beginning to view Azerbaijan as an important platform in a changing Eurasian energy map. While Washington is signaling renewed political backing, Turkish President Recep Tayyip Erdoğan remains one of the principal architects of the region’s practical integration. Over the past...

Textile Industry

Turkmenistan Showcases Textile Industry as Labor Concerns Linger

Textile executives from Asia and Europe will gather this week at an event in Turkmenistan, which says it is aligning its textile industry with international standards despite continuing concerns about labor conditions during the annual cotton harvest. More than 30 Turkmen firms are registered to participate in the TurkmenTextile Expo in Ashgabat on June 4-6, according to event organizers. More than 40 companies from China, Turkey, and Italy are also listed as Turkmenistan seeks to upgrade an industry that is critical to the national economy. Discussion topics include brand strategies, the new textile technology for deriving fibers from algae, and the role of traditional textiles in contemporary art and fashion in Central Asia. There will be a fashion show and a presentation about the Eurasian Council for Craft & Design, a platform that was launched this year to promote regional designers and artisans. Katharina Schaus, the German founder of a consultancy called it fits – Organic Textile Partner, will speak about international trends in sustainable cotton production and textile certification. Another speaker, Carola Deiners, will address “responsible sourcing and the expectations of international buyers.” There have long been international concerns and calls for boycotts because of the reported mobilization of public employees and the use of forced labor, including children, in the annual cotton harvest in Turkmenistan. While the government has promised to improve working conditions and has collaborated with international inspectors, critics point to periodic state denials of the problem and an alleged gap between labor rules and their implementation. This year, the International Labour Organization, or ILO, said in a report on the 2025 harvest in Turkmenistan that there had been some progress on working conditions, particularly remuneration, but that some contractual protections and safety and health measures were still lacking. The report said there was still public employee involvement in the harvest and reported recruitment through workplace or administrative channels, as well as the perception of negative consequences for refusal to work in cotton. There was “a clear increase in children’s presence in cotton fields compared to 2024, despite strengthened legal prohibitions,” according to the report. Turkmenistan, meanwhile, has said it is increasing investment in spinning, weaving, knitwear, sewing production, and other aspects of its textile industry. Part of that effort has included the introduction of new production technologies from top textile companies in Japan and Europe. While there is a strong focus on exports, Turkmenistan’s Ministry of Textile Industry launched an online store called Dokma as part of a plan to digitalize the domestic economy. Through Dokma, state media reported last year, “customers can order hundreds of types of textile and leather footwear products — from enterprises within the ministry’s system as well as from private producers.”

Trade Corridors

Opinion: Eurasia’s New Corridors Are More Than a Transit Race

Across Eurasia, new transport corridors are usually described as instruments of rivalry: routes to bypass Russia, ports to outflank competitors, or rail links to shift influence between regions. The conflict around Iran, the rivalry between India and Pakistan, instability in the Afghanistan-Pakistan zone, crises in the Middle East, sanctions, competition over transport routes, and growing struggles for transit influence all reinforce the image of a continent divided by political contradictions. Increasingly, this is the lens through which Eurasia is viewed. The development of transport routes and connectivity is now often explained through the logic of rivalry. Some corridors are described as alternatives to others. Certain ports are positioned against competing ports. Routes are increasingly perceived as tools of competition, circumvention, or geopolitical influence. The continent can also be viewed differently. Alongside political crises, another reality is visible: the continent continues to connect itself through new routes and networks. Railways, ports, energy grids, dry ports, container corridors, digital cables, and trade chains are gradually linking spaces that only recently were seen as separate regions. In many ways, Eurasia has always been a space of movement, exchange, and connectivity. The Silk Road Was a Network, Not a Single Route A recent article by News Central Asia made a simple but important observation: the Silk Road functioned because it belonged to everyone. This idea contains one of the central lessons of Eurasian history. The Silk Road was never a single road. It was not one unified highway built according to a master plan or controlled by a single center. For centuries, the continent was connected by a vast network of caravan routes, maritime pathways, mountain passes, cities, and trade hubs through which goods, people, knowledge, and ideas circulated. Some routes gained importance while others temporarily declined. States, empires, and commercial centers changed. New pathways emerged. Yet the network itself endured. The strength of the Silk Road lay not in one route, but in the multiplicity of connections. When one corridor became unsafe, trade shifted elsewhere. When political conditions changed, commerce adapted to a new geography. The continental network remained flexible and multilayered. This offers an important lesson for today’s Eurasian space as well. Many modern transport corridors did not emerge from nothing. In many respects, they follow historical logic. Railways have replaced caravan paths, dry ports have succeeded old trade hubs, and container routes continue along directions in which goods moved for centuries. Corridors and the Logic of Rivalry Today, most transport and economic corridors are interpreted as competing projects. Nearly every new route is framed through confrontation, alternatives, or attempts to bypass another direction. The Middle Corridor is often described as an alternative to northern routes. The International North-South Transport Corridor is presented as a separate geo-economic axis. Trans-Afghan projects are portrayed as competitors to other links between Central and South Asia. Chabahar and Gwadar are depicted as rival ports. Even the South Caucasus transport hub is increasingly viewed through the prism of struggles over control of routes and flows. Yet historically,...