l increase in the INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 3. OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE Table 3.1. World electricity generation Share in world (%) Share in world (%) 9 938 United States 4 081 Japan 1 047 Germany Canada France United Kingdom Other 2 658 Non-OECD 1 419 China 1 907 Russia India Brazil Indonesia Other 2 897 World 16 742 Source: IEA databases. Figure 3.1. Worldwide orders for new power-generation capacity Source: IEA databases. US market. Investment in transmission and distribution has lagged behind investment in generation in some countries, notably in the United States and some European countries. Nonetheless, global electricity network investment is thought to have risen in recent years. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 - © OECD 2006 OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE In OECD countries, power sector investment typically accounts for less than 0.5% of GDP (Figure 3.2). With the notable exception of the United States, investment in the majority of them has declined since the mid-1990s for various reasons, including high reserve margins in some countries, the lower capital costs of new power plants, low demand growth and uncertainty caused by environmental policies and market liberalisation. Competition between utilities has reduced profit margins, especially in markets with excess capacity and low demand growth. Figure 3.2. OECD electricity sector investment relative to GDP Germany Netherlands United Kingdom Italy Spain Sweden Ireland Portugal United States Japan Canada Greece Sources: National and regional electricity associations; IEA databases. In contrast to Europe and Japan, investment in the United States has increased dramatically over the past few years, peaking at close to USD 57 billion (in nominal terms) in 2001 (Figure 3.3). Most of the increase in investment reflects increased power plant construction. Investm