[SOLVED] wpa_supplicant: Failed to initialize driver

I managed to make it up and running. I did a stupid thing: ctrl_interface is not path to interface so here is the working config...

ctrl_interface=/var/run/wpa_supplicant
ctrl_interface_group=root
ap_scan=0

network={
    key_mgmt=IEEE8021X
    eap=PEAP
    pairwise=CCMP
    identity="<>"
    password="<>"
    phase2="auth=MSCHAPV2"
}

I flashed OpenWrt and it even works there.