Energy demand in Asia is growing so fast that the region's inability to meet its current needs could impede overall economic growth, according to the latest Asia-Pacific outlook by economic consultancy DRI/McGraw-Hill.
Total primary energy demand was forecast to leap 117 per cent, from 2.5 billion tonnes in 1995 to 5.4 billion tonnes in 2020, with China accounting for 42.4 per cent of demand.
'With strong economic and population growth forecast for the region, energy shortages could be a major bottleneck to growth,' DRI/ McGraw-Hill Energy Group director Silvia Pariente-David said.
In a bid to try and bridge the gap between energy consumption and production, Asian countries have begun to slow energy demand growth and seek new funding to expand capacity.
The report said there would be a strong reduction in energy intensities, and by 2020 large improvements in energy efficiency, particularly in China and South Korea.
Despite this, energy demand will more than double by 2020, making the region the largest energy market in the world, the report said.
Prices will also rise as subsidies are removed.