Asia confronts a daunting energy challenge: ADB

Tuesday, 16 September 2014 00:01 - - {{hitsCtrl.values.hits}}

Rapidly-growing Asia confronts a daunting energy challenge in the decades ahead, says a new co-publication of the Asian Development Bank (ADB) and Routledge. With Asia’s economic growth estimated to accelerate from 6.1% in 2012 to 6.4% in 2014, the potential for future long-term growth is vast. With the right policy decisions, Asia could potentially account for 44% of global GDP by 2035. The Asian Century scenario would see the region’s share of world energy consumption rise rapidly from barely a third in 2010 to 51% - 56% by 2035. Without sufficient energy, developing Asia would need to scale back its economic growth ambitions. “Energy systems will be challenged to satisfy developing Asia’s economic aspirations,” said ADB Country Director, Sri Widowati at the launch of the publication in Colombo. The event was co-hosted by the Institution of Engineers, Sri Lanka and the Sri Lanka Energy Managers’ Association. The publication, titled ‘Asia’s Energy Challenge: Key Issues and Policy Options’ explores core energy issues of securing an adequate physical energy supply, building environmental sustainability, and ensuring affordable energy access for all Asians. Seemingly irreconcilable paradox Asia faces a seemingly irreconcilable paradox. If it can somehow secure sufficient energy resources to maintain robust growth, it will sharply boost global carbon dioxide levels in the process, with enormous economic and social costs. Delivering cleaner energy such as wind and solar is crucial. However, one increasingly feasible possibility is for Asia to utilise its substantial reserves of shale gas to offset coal use. More than anything, regional integration of energy markets can have great benefits. Connecting electricity and gas grids across borders can create economies of scale that improve efficiency. As such, the region must strive to establish a Pan-Asian Energy Market, says the publication. ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2013, ADB assistance totalled $21.0 billion, including co-financing of $6.6 billion.