World Energy Outlook 2007

Figure 1.12: Fuel Mix in Power Generation in the Reference Scenario
100%
OECD
Non-OECD
80%
60%
40%
20%
0%
2005 2030 2005 2030
Coal Oil Gas Nuclear Hydro Rest of renewables
Energy Investment
The Reference Scenario projections in this Outlook call for cumulative
investment in energy-supply infrastructure of around $22 trillion (in year-2006
dollars) for the period 2006-2030 (Table 1.9). 10 This projection is about
$1.7 trillion more than last year’s. Although the period is one year shorter,
higher units costs – particularly in the upstream oil and gas industry – have
pushed up overall capital needs. Projected investment will be needed to expand
supply capacity and to replace existing and future supply facilities that will be
closed during the projection period as they become obsolete or resources are
exhausted.
The power sector requires $11.6 trillion of capital expenditure over the
Outlook period, accounting for more than half of total energy-supply
investments. The share is closer to about two-thirds if investment in the
10. The projections of investment in each of the three scenarios presented in this WEO for the
period 2006-2030 are derived from the projections of energy supply for each fuel and each region.
The methodology used involved estimating new-build capacity needs for production,
transportation and (where appropriate) transformation, and unit capital costs for each
component in the supply. Incremental capacity needs were multiplied by unit costs to yield the
amount of investment needed. Capital spending is attributed to the year in which the plant in
question becomes operational. It does not include spending that is usually classified as operating
costs.
94 World Energy Outlook 2007 - GLOBAL ENERGY PROSPECTS: IMPACT OF DEVELOPMENTS IN CHINA & INDIA