How to provide energy for everybody

Asian economies have seen dramatic growth in recent decades. As a result, global energy demand has shifted to the East. But if the region's dynamic economies want to maintain their momentum, they must think hard about how to effectively meet their hunger for energy.

China is now the world's biggest energy consumer; it consumes almost half of the world's coal output and leads in the growth of renewables. India is emerging as a major economic powerhouse and, with its new leadership, holds promise to grow even faster as its population continues to expand.

To satisfy its energy demand, Asia will become more dependent on energy imports. The growing demand for and higher dependency on imported fuels is making Asia more vulnerable to fluctuating prices in the global energy market. This trend has made energy prices among the top critical uncertainties in Asia, giving sleepless nights to large energy producers and consumers, according to the World Energy Council's World Energy Issues Monitor.

Since many of the critical solutions are beyond the reach of an individual country, regional integration of infrastructure trade and regulation will play a key role in solving the challenges facing them. The recent gas pipeline agreement between China and Russia is only the latest example of a strategic collaboration to meet demand and revenue objectives in a mutually beneficial way.

At the same time, mitigating pollution, mainly from the burning of coal, is a top priority in the region at a time when the climate agenda has reached a critical stage. High expectations are on growing liquefied natural gas markets and unconventional resources in China and elsewhere in the region. Perhaps methane hydrates could complement, and even replace, coal in the region in the future.

Renewable energy and energy efficiency, too, have the potential to help strengthen Asia's energy security. Energy efficiency is necessary for achieving sustainable growth in the region. However, adoption of energy efficiency measures is being deterred by the political lock-in, prompting many governments to continue providing subsidies and reducing energy prices for their citizens. This distorts the market and does not reflect the true cost of energy, which ultimately results in waste of energy.

In stark contrast to the phenomenal growth of Asian economies, nearly 500 million people still don't have access to electricity in the region, primarily in the off-grid or remote areas of South, Southeast and Central Asia. Going by the current trend, universal access to energy will not be a reality even by the middle of this century. Access to electricity will increase substantially by then, but 45 million to 102 million people will still be without electricity, according to the WEC's World Energy Scenarios.