Asia Pacific Must Invest Up To $9.7 Trillion by 2030 to Meet Predicted Energy Demands

A new report by the Asian Development Bank (ADB) claims the Asia Pacific region must invest between $7 and $9.7 Trillion into the energy sector by 2030.

Titled The Energy Outlook for Asia and the Pacific [pdf], the report has been launched at the Pacific Energy Summit and projects regional energy demand to grow 2.4% every year between 2005 and 2030, outpacing the world average of 1.5%. Predicted to be out of the economic downturn sometime in 2010, the gross domestic product for Asia and the Pacific will climb, which also means an increase in energy demand. 

Nearly 80% of the region’s energy needs in 2030 would have to be met by fossil fuels – coal, oil and natural gas – and this will drive the growth in carbon dioxide emissions, the report warns. Net imports of oil are projected to increase substantially, nearly doubling the 2005 level by 2030.

In the face of a changing political climate towards energy and greenhouse gas emissions, this rapid rate of growth poses a serious problem for investors, energy consumers, and policy-makers.

During the launch, ADB Vice-President Lawrence Greenwood called on all stakeholders to seek a low-carbon path to meet growing energy demand in a socially, economically and environmentally sustainable way.

'Cooperation among the economies is needed to enhance energy security and sustainable development in the region,' Mr. Greenwood said. 'This can be done through sharing policy information, facilitating energy trade and conducting joint energy projects.'

The report states, new and renewable energy will represent the fourth-largest share of total primary energy demand, at 11.2% in 2030. In Asia and the Pacific, biomass will account for the bulk of the share. In view of the replacement of biomass with commercial energy sources, new and renewable energy is projected to increase slowly, at an annual rate of 1.3%.

The countries with the predicted highest demand: China, Korea, Indonesia, and India.

This new report is the first attempt to consolidate and project energy demand and supply information in Asia and the Pacific by country, sub-region and the region as a whole.

It will provide insights into the recent energy situation and a wealth of information for stakeholders inside and outside the region to chart their course of action in planning for energy investments, sustainable development, and poverty alleviation.