World Energy Outlook 2006

only about $36 billion (about 14% of the total), while the lower-middle income
countries and upper- to middle-income countries (as classified by the World
Bank) received $116 billion (42%) and $122 billion (44%) respectively. In 2004,
Brazil, India, Malaysia and Thailand were the largest recipients of private
investment. Power plants accounted for three-quarters of investment in the
sector, followed by transmission facilities and distribution companies.
Figure 6.16: Cumulative Private Investment in Electricity Infrastructure
in Developing Countries, 1990-2004
Brazil
China
Argentina
India
Philippines
Malaysia
Indonesia
Thailand
Chile
Morocco
Other
Source: World Bank PPI database.
0 10 20 30 40 50 60 70 80
billion dollars (2005)
The type of company pursuing infrastructure projects is also changing. Early
investors, such as AES, EDF and Suez, have scaled back their investment in
developing countries (World Bank, 2004). Corporations based in developing
countries have emerged as important sponsors, with four of them ranking
among the top ten investors in 2001-2004: Malakoff (Malaysia), China Light
and Power (Hong Kong, China), Banpu (Thailand), and Sasol (South Africa).
In India, local investors have been responsible for the recent revival of private
activity in electricity.
Financing power generation in developing countries, particularly in the poorer
of them, is a key challenge. The investment gap can be filled only by internal
cash generation or increased private-sector financing. Both require significant
improvements in governance and continued restructuring and reform. The gap
between needs and investment is likely to remain in the worst-affected
countries, deferring the timescale for widespread access to electricity.
Chapter 6 - Power Sector Outlook 155
© OECD/IEA, 2007
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