The overall level of investment required for new power plantsbefore 2030 will cost as much as $1.7 to 2.7 trillion. Aging powerplants will be the main driver for investment in new energygeneration capacity in the U.S.

Utilities will make their technology choices within the next five toten years based on national energy policies, in particular marketliberalization, renewable energy and CO2 reduction targets. Apossible future emissions trading scheme will have an importantinfluence on whether the majority of investment goes into fossil fuelpower plants or renewable energy and co-generation. Theinvestment volume required to realize the Energy [R]evolutionScenario is $2.8 trillion, approximately $1.1 trillion higher than inthe Reference Scenario, which will require $1.7 trillion.

While over 60 percent of investment under the Reference Scenariowill go into fossil fuels and nuclear power plants, at about$1 trillion up to 2030, the Energy [R]evolution Scenario shiftsabout 70 percent of investment towards renewable energy. The fossilfuel share of power sector investment is focused mainly oncombined heat and power, and efficient gas-fired power plants.

The average annual investment required in the power sector under theEnergy [R]evolution Scenario between 2005 and 2030 isapproximately $111 billion. Most investment in new renewable powergeneration will go towards wind power, followed by solar photovoltaics.