World Energy Outlook 2006

$3 trillion, arise in China. Investment needs are also very large in OECD
North America and Europe (Figure 6.10). Investment to replace currently
operating capacity accounts for over 40% of total investment in the OECD
and over 50% in transition economies, but it is a very small share of total
investment in developing countries (Figure 6.11).
Figure 6.10: Cumulative Power-Sector Investment by Region
in the Reference Scenario, 2005-2030
Brazil
Middle East
Other Latin America
Africa
Rest of developing Asia
India
China
Transition economies
OECD Pacific
OECD Europe
OECD North America
Developing countries = 57% of world total
Transition economies = 5% of world total
0 500 1 000 1 500 2 000 2 500 3 000 3 500
billion dollars (2005)
OECD = 38% of world total
Power generation Transmission Distribution
Box 6.2: Siting New Power Infrastructure
Over the next 25 years, the Outlook projects a need for substantial new
investment in generation and transmission. But in many countries,
particularly in the OECD, siting new power plants or transmission lines
has become very difficult. Nuclear and coal-fired plants, wind farms and
hydropower stations, all face stiff opposition. Many hydropower projects
in developing countries have been delayed or abandoned (see Box 6.1).
In the United States, several of the many newly proposed coal-fired
power plants have already been challenged. Building onshore wind
turbines is widely opposed. Transmission networks are even more
unpopular. It is more than possible that much of the required new
capacity will not be built in time.
Chapter 6 - Power Sector Outlook 149
© OECD/IEA, 2007
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