Turkmenistan Upgrades Electricity Infrastructure with $500m ADB Support

Turkmenistan, Electricity, Asian Development Bank, modernize, energy
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Ashgabat (TDI): The Asian Development Bank (ADB) has been partnering with Turkmenistan since 2018 to modernize the country’s electricity infrastructure, marking a significant milestone in regional cooperation.

At the heart of this collaboration is the $500 million National Power Grid Development Strategy, the first initiative by an international financial institution in Turkmenistan’s energy sector. The project aims to improve the reliability of the national power network and enhance the country’s electricity export capacity.

The initiative has funded the construction of approximately 1,400 kilometers of high-voltage transmission lines at 110, 220, and 500 kilovolts. It also supported the development of 11 substations across Akhal, Balkan, Dashoguz, Lebap, and Ashgabat. Additionally, technical assistance worth $1.5 million was provided through a grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific.

The ADB reported that the project is already showing results. Electricity exports increased from 3.4 terawatt-hours in 2017 to 9.3 terawatt-hours in 2023, driven by expanded transmission capacity and improved system stability. Turkmenistan’s State Electric Power Corporation Turkmenenergo contributed $175 million to support the project’s implementation.

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The ADB said the project demonstrates its commitment to sustainable economic growth and development across Asia and the Pacific through a combination of loans, grants, and technical support.

Beyond energy, cooperation between the ADB and Turkmenistan has expanded into other sectors. In September 2025, the ADB approved a $75 million loan and a $2 million grant from the Japan Fund to strengthen Turkmenistan’s nursing and midwifery workforce, marking its first health sector project in the country.

Experts say the project reflects a growing focus on modern infrastructure and regional connectivity, which can drive economic diversification and enhance Turkmenistan’s role in Central Asia’s energy markets.

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Analysts note that upgrading electricity systems not only supports domestic development but also positions Turkmenistan as a reliable exporter of power, boosting trade opportunities and regional cooperation.

The initiative highlights the importance of international partnerships and investment in advancing sustainable growth, demonstrating how targeted funding and technical assistance can yield measurable improvements in national infrastructure and public services.

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