ent in the EU electricity industry is currently running at about USD 30 billion per year. It was on average lower in the 1990s than in the 1980s, because the amount of capacity built was lower and because investment was directed towards low capital cost plant, notably combined-cycle gas turbines (CCGTs) (IEA, 2003). Investment in Japan has been declining since the mid-1990s. The level of investment in 2001, at just under USD 20 billion, was about half the 1994 level, as a result of a slowdown in electricity demand. In most developing regions, power sector investment picked up in the 1990s in response to strong demand growth (Figure 3.4). The biggest increase occurred in China, following reforms initiated in the 1980s. Between 1991 and 2000, China INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 3. OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE Figure 3.3. Electricity sector investment in the United States Billion dollars Source: Edison Electric Institute (2005). Figure 3.4. Annual average capacity additions in developing regions 1971-1980 1981-1990 1991-2000 China India Indonesia Other Africa Brazil Other Latin Middle America Source: IEA databases. increased installed capacity by as much as all other developing Asian countries put together. Nonetheless, Indonesia and other Asian countries saw continuous expansion throughout the 30-year period, despite the setback in the late 1990s attributable to the economic crisis. The rate of capacity expansion in India, the Middle East and Latin America in the 1980s did not continue into the 1990s. In the Middle East, this can be explained to some extent by the high levels of per capita electricity generation achieved in some countries in the region. In India and Latin America, particularly in Brazil, market reforms aiming at encouraging private INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 - © OECD 2006 OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE 