Currently, some 2.4 billion people in developing countries lack modern fuels for cooking and heating and about 1.6 billion people do not have access to electricity. In some developing countries in South Asia, only 30% of the rural population has access to electricity compared with 68% of the urban population. Energy services fail to meet the needs of the rural poor in most of the developing countries in the Asian region. The millennium development goals (MDG) are a set of time-bound, measurable goals for combating poverty, hunger, disease, illiteracy, environmental degradation, and gender inequality. All these goals require or relate to energy services. The MDG may not be met unless rapid progress is made in extending efficient and affordable energy services to the poor in support of productive economic activities or social development. On the other hand, rural energy has always been a critical issue due to years of energy shortage for both households and industries. Biomass, for a long time, has been the only available fuel in many rural areas. A series of policies and strategies have gradually been put in place to encourage alternative fuel exploration and utilization as well as area-based integrated energy systems.