World Energy Outlook 2007

other renewable energy sources grows more quickly, but still accounts for only
a very small share of primary energy demand in 2030. Among powergeneration
technologies, wind power sees the fastest growth, with capacity
rising from just over 6 GW in 2006 – the fourth-largest in the world – to
27 GW by 2030, so that its share of total electricity generation rises from just
under 1% to 2.5%. Biomass use for biofuels, which only recently started in
India, is expected to grow to almost 2 Mtoe in 2030, though this represents
little more than 1% of road-transport fuel demand.
2
Investment Needs
The projected energy supply in China and India in the Reference Scenario calls
for cumulative infrastructure investment of $5 trillion (in year-2006 dollars)
over the period 2006-2030, or $200 billion per year (Figure 2.7). This
investment is needed both to expand supply capacity and to replace existing
and future supply facilities that are retired during the projection period. China’s
overall investment needs are three times those of India. China accounts for
17% of projected world energy investment and India 6%.
In both countries, the electricity-supply industry – covering power generation,
transmission and distribution – takes the lion’s share of energy investment.
China needs to invest $2.8 trillion in electricity facilities, or close to threequarters
of the country’s total energy investment. India’s electricity sector
Figure 2.7: Cumulative Investment in Energy Supply in China and India by
Fuel in the Reference Scenario, 2006-2030
Oil*
Gas
Coal
Electricity
0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000
*Oil includes investment in biofuels.
billion dollars (2006)
China
India
Chapter 2 - Energy Trends in China and India 129