future costs of electricity generation
Figure 5.114 shows that the introduction of renewable technologies under the Energy [R]evolution scenario significantly decreases future costs of electricity generation in Non OECD Asia compared to the Reference scenario. Because of the lower CO2 intensity of electricity generation, electricity generation costs will become economically favourable under the Energy [R]evolution scenario and by 2050 costs will be $ 7.2 cents/kWh below those in the Reference version.
Under the Reference scenario, on the other hand, unchecked growth in demand, an increase in fossil fuel prices and the cost of CO2 emissions result in total electricity supply costs rising from today’s $ 145 billion per year to more than $ 777 billion in 2050. Figure 5.114 shows that the Energy [R]evolution scenario helps Non OECD Asia to stabilise energy costs and relieve the economic pressure on society. Increasing energy efficiency and shifting energy supply to renewables lead to long term costs for electricity supply that are 14% lower than in the Reference scenario, including estimated costs for efficiency measures.