lower than in the Reference Scenario (Figure 3.11). It then reaches 23 202 TWh, an increase of 70% over 2003 compared with 94% in the Reference Scenario. The annual average rate of growth over 2003-30, at 2%, is 0.5 percentage points lower than in the Reference Sceanrio. Energy efficiency measures for industrial processes, appliances and lighting are the main causes of these savings in all regions. The residential sector accounts for 67% of the drop in electricity Figure 3.11. World electricity consumption in the Reference and Alternative Policy Scenarios Reference Scenario Alternative Policy Scenario 30 000 25 000 20 000 15 000 10 000 5 000 INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 3. OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE demand, with the rest coming from industry (Table 3.7). The overall decline in demand is greatest in the developing countries, where it falls by 13% in 2030 compared with the Reference Scenario. The demand gap between the two scenarios widens progressively over the projection period, as the capital stock in the electricity sector is gradually replaced and new measures are introduced. The difference in electricity consumption is only 2% in 2010. Table 3.7. Change in electricity consumption by sector in the Alternative Policy Scenario compared with the Reference Scenario, 2030 Transition economies Developing countries World Residential -12.4 -16.7 -15.9 -14.1 Industrial -11.5 -10.3 Total -10.8 -11.0 -11.8 In the Alternative Policy Scenario, world electricity generation in 2030 is 13% lower than in the Reference Scenario. The reduction results mainly from end-use efficiency improvements, which reduce demand, as well as from reduced losses in transmission and distribution and from greater use of distributed generation. The difference between the two scenarios is roughly equal to the current electricity output of the United States. The fuel mix in power generation is also markedly different. In the Reference Scenario