Asia will “consume more than half the world’s energy supply by 2035” according to the Asian Development Bank.
In a new report, the bank states that the region’s electricity consumption will more than double as “economic growth and rising affluence drive demand”.
And the bank says that cross-border power exchanges will provide the solution to Asia’s thirst for power.
S. Chander, the bank’s special senior advisor on infrastructure and public-private partnerships, said: “Countries cannot meet these huge power requirements all on their own, so the region must accelerate cross-border interconnection of electricity and gas grids to improve efficiencies, cut costs, and take advantage of surplus energy.”
The bank’s report, Energy Outlook for Asia and the Pacific, states that fossil fuels will continue to dominate the energy mix in the coming decades, with the demand for coal set to rise by more than 50 per cent to 2035, led by consumption in China and Southeast Asia.
However it states that the region’s projected annual rise in energy demand could be almost halved by “a mix of efficiency measures, advanced generation technologies, and greater use of renewable power”.
And the bank warns that “meeting the region’s energy needs will come at a hefty cost”, putting a sum of about $11.7 trillion on the investments needed through to 2035.