Asia May Need $1 Trillion a Year to Strengthen Energy Security

Asia may need $1 trillion in annual energy investment over the next 15 years as rising demand and a recent supply disruption expose the region’s dependence on imported fuels.

About 70% of global net energy demand growth through 2040 is projected to come from Asia. Industrial expansion, data-center construction and rising cooling needs are driving that increase. The projection measures Asia’s share of new global demand, rather than its share of total energy consumption.

Asia consumes about 40 million barrels of oil a day and produces about 10 million barrels a day of crude. In 2025, imports from outside the region supplied an estimated 135 million to 140 million metric tons of liquefied natural gas per year. The oil figures are daily rates, while the LNG amount is an annual import figure. A recent disruption around the Strait of Hormuz highlighted the region’s exposure to supply interruptions.

Southeast Asia’s electricity demand is projected to rise by more than 100 terawatt-hours by 2030, alongside greater exposure to energy-market disruptions and price swings. The earlier forecast for Southeast Asia’s electricity demand runs to 2030, while the Asia-wide energy outlook runs through 2040.

Some investment projections cover specific parts of the energy system. Annual investment in solar and wind could reach about $300 billion through 2040, while grid investment may rise from roughly $185 billion today to more than $300 billion a year by 2030. These figures do not provide a full allocation of the $1 trillion annual need. The broader estimate also encompasses domestic oil and gas, storage and alternative fuels.

Under the “Continued Momentum” baseline, coal demand across Asia is expected to stay broadly flat over the next decade. Rising coal use in India and Southeast Asia is expected to counter lower demand in China. Industrial growth is expected to lift gas demand over the longer term, following five to 10 years of slower growth.

The $1 trillion figure is an estimate of annual need over 15 years, not an announced government spending commitment. It gives no cumulative total and specifies neither a sector-by-sector division nor the share expected from public versus private funding. The 15-year period has no specified endpoint year.