00 dollars) - or almost 16% - less than in the Reference Scenario. Although the average unit capital cost of power generation is 14% higher in the Alternative Policy Scenario than in the Reference Scenario (because of the greater use of more capital-intensive nuclear power, renewables and distributed generation), this effect is more than offset by slower demand growth, which reduces the need for new power plants and new network capacity. The increased use of distributed generation also reduces the need for transmission capacity - and, therefore, investment. The fall in cumulative investment amounts to around USD 300 billion for power generation, USD 375 billion for transmission and USD 860 billion for distribution. The biggest dollar reductions in investment needs compared with the Reference Scenario occur in North America and China (Figure 3.13). The only Figure 3.13. Change in investment requirements in electricity supply by region in the Alternative Scenario compared with the Reference Scenario, 2003-30 Billion dollars (2000) China South Transition Latin East Asia Middle Africa North Europe Pacific economies America America INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 OUTLOOK FOR GLOBAL INVESTMENT IN ELECTRICITY INFRASTRUCTURE region that sees an increase in investment is Africa, where the higher cost of renewables - which grow much more rapidly than in the Reference Scenario - more than offset the reduction in capacity needs. In percentage terms, the reductions are biggest in North America and South Asia, where electricity demand falls heavily and where the shares of renewables and nuclear power increase less than in most other regions (Table 3.9). Table 3.9. Electricity sector investment by region in the Alternative Policy Scenario, 2003-30 Cumulative Investment (USD billion in year-2000 dollars) Difference vis-à-vis Generation Transmission Distribution Total Reference Scenario (%) 2 088 3 3 184 -19.2 OECD Europe 1 220 -12.8 OECD North America -23.9 