Asian nations should set up a task force at the ministerial level to consider creating a regional power grid, says the Asian Development Bank.
In a report on the energy challenges facing Asia, ADB said the task force should be in charge of curbing energy demand and increasing the supply of clean, affordable energy with greater coverage for the poor.
The region, excluding the Middle East and Japan, needs a huge energy supply to support economic growth, the report said.
Principal economist Donghyun Park said curbing energy demand is necessary because several countries are subsidising fossil fuels in a range of 2-4% of gross domestic product, including India, Indonesia, Vietnam, Bangladesh and Pakistan.
"The huge subsidy budget could be better spent on infrastructure like highways or hospitals, but the termination of subsidies depends on each country's political will," said Mr Park.
And although the region has rapidly developing renewable sources, including hydro power, the share of renewables in total consumption has remained low.
"In the longer term, shale gas or unconventional gas could provide a clean bridge to a future less dependent on fossil fuels and could offset coal use," said Mr Park, adding that China, India and Pakistan are among the world's top 20 in shale gas reserves.
He said the development of nuclear power, which reduces carbon dioxide emissions, has been sidelined in the region on safety concerns.
"However, Asia should go for nuclear in the future," said Mr Park.
Kurujit Nakornthap, the deputy permanent secretary for energy, said nuclear power should be part of the energy mix in the long term, once new technology makes plants safe for local communities.