The territory of the Republic of Kalmykia belongs to the regions with proven industrial oil and gas deposits and is a highly prospective for further search of gas and oil. The least estimate indicators for the territory of the republic for oil are approximately 5,5 billion tons, gas - 520 billion cubic meters. And the explored territory is only 1,7%.

At the present time there are 38 oil and gas deposits explored in the territory of the republic, including 17 oil deposits, 10 gas deposits, 6 oil and gas deposits and 5 condensed by-product deposits. The extraction of oil is carried out at 23 sites, gas is extracted at 11 sites.

The republic does not have its own power generating capacity. With the growth of consumption after the launch of the sea port in Lagan, the part of the oil pipeline Tengiz-Astrakhan-Novorossiysk, glass plant, alcohol plant in Elista and other industrial objects the annual consumption of power will exceed 1300 million KWatt.

Therefore in order to meet the necessities of the republic in the electric and heat power the construction of the Kalmyk Wind Power Plant is carried out with the capacity of 22 MWatt and Elista Steam and Gas Power Plant with the capacity 320 MWatt. The annual output of power will total at 1374 million KWatt/h, and 480 thousand Gkal of hear energy. The tariffs for the outputted power ate projected to be lower than the average Russian level.