The main challenge to energy policy makers in the 21st century is how to develop and manage adequate, affordable and reliable energy services on a sustainable manner to fuel social and economic development. About 60 per cent of the world's two billion population, who do not have access to modern energy services, live in Asia and the Pacific region. The demand for energy is expected to continue growing at a high rate well into the century, often at a greater rate than economic growth. Latest assessment of conventional energy resources shows that their availability is not going to be an immediate threat to the security of supply but the question is can the region afford to allow current patterns of production and consumption of energy to continue in a rapidly deteriorating health of the environment? Changing these unsustainable patterns is the main challenge for the developed and developing countries alike. The paper dwells upon what are the major issues facing the region in promoting sustainable energy development and what are some of the policy options and possible strategies that the countries could consider to attain the objective of sustainable energy development. In this respect, the paper also dwells upon the need for strategic planning and management of energy resources. (C) 2003 Published by Elsevier Science Ltd.