The need to rethink energy security

Energy demand in Asia and the Pacific is projected to grow on average by 2.75% a year between now and 2030, with the region accounting for half of global demand by 2030. Much of that – more than 80% – will still be for fossil fuels such as oil and coal, making the region not only vulnerable to volatile energy prices but also to carbon emissions from the burning of fossil fuels.

Meeting this enormous demand is already a challenge for governments. With energy prices continuing to break new records, it is doubly difficult.
At present, many countries in the region are trying to enhance energy security by doing more of the same _ building more power plants and pipelines, diversifying oil supply sources, expanding strategic storage, etc. But these are only short-term solutions. They will not shield energy-importing countries from price volatility as demand continues to outstrip supply.

As a new study by the United Nations Economic and Social Commission for Asia and the Pacific (Escap), ”Energy Security and Sustainable Development in Asia and the Pacific,” points out, one problem is that we are too dependent on fossil fuels. To improve long-term energy security and sustain economic growth and development, we need a new approach to energy consumption _ more efficiency and more renewable energy.

Our study estimates that by improving energy efficiency _ using less energy to perform the same tasks _ global energy demand could be reduced by 12% by 2030, saving $766 billion in building new energy infrastructure. Another way to look at it is that for every one dollar invested in improving energy efficiency, we would save more than two dollars in infrastructure investment.

Renewable energy currently accounts for only 9% of primary energy production in Asia and the Pacific. Yet the region is well-endowed with renewable energy resources. It has 40% of the world’s total hydroelectric technical potential, and about 35% of solar and geothermal energy potential. It also has substantial potential for generating biomass and wind energy.

Energy security is not just about reducing our vulnerabilities to volatile energy prices; it is also about ensuring access to affordable energy for the poor. To pursue energy security, the countries of the region need to ensure that energy supplies are available, sufficient, affordable and sustainable. The way ahead will rely on using innovative financing and greater regional and sub-regional cooperation to develop energy infrastructure which promotes equitable economic and social development without compromising the environment.

Bangkok Post