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|16 November 2009
More the $1 trillion necessary to meet Asean’s rising energy demand
The Asean region needs to invest an estimated US$1.1 trillion between 2008 and 2030, half of this in the power sector, to meet rising energy demand, Malaysian newspaper the StarBiz reported, citing the International Energy Agency (IEA).
“The 10 countries in Asean are set to play an increasingly important role in global energy markets in decades ahead,’’ the agency said in its executive summary.
The agency released its World Energy Outlook 2009 report last week. “In the Reference Scenario, Asean primary energy demand expands by 76 percent between 2007 and 2030, an average annual growth rate of 2.5 percent. This is much faster than the average rate in the rest of the world,’’ it said.
The Reference Scenario provides a baseline picture of how global energy markets would evolve if governments make no changes to their existing policies and measures.
The IEA also came up with a another situation, called 450 Scenario, which depicts a world in which collective policy action is taken to limit the long-term concentration of greenhouse gases in the atmosphere to 450 parts per million carbon dioxide equivalent.
“In the 450 Scenario, total investment needs will be US$390mil higher’’ for Asean, the IEA said.
With only about 1 percent of the world proven reserves of oil, the region is heavily dependent on imports and is set to become even more so in the future.
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