future costs of electricity generation
Figure 6.55 shows that the introduction of renewable technologies under the Energy [R]evolution scenario will lead to a significant reduction in electricity generation costs. Under the Reference scenario, on the other hand, the unchecked growth in demand, increase in fossil fuel prices and the cost of CO2 emissions result in total electricity supply costs rising from today’s $82 billion per year to more than $608 billion in 2050. Figure 6.55 shows that the Energy [R]evolution scenario also meets the Middle East’s CO2 reduction targets.
Increasing energy efficiency and shifting energy supply to renewables leads to long term costs for electricity supply that are significant lower than in the Reference scenario.This helps to stabilise energy costs and relieve the economic pressure on society.
In both Energy [R]evolution scenarios the specific generation costs are almost the same up to 2030. By 2050, however, the advanced version results in a 1.6 cents/kWh higher costs, mainly because of additional storage demand for the production of renewable power. Due to the increased electricty demand especially in the transport and industry sector the overall total supply costs in the advanced case are $69 billion in 2040 and $73 billion in 2050 higher than in the Energy [R]evolution scenario.