future costs of electricity generation

Figure Figure 38 shows that the introduction of renewable energy technologies under the Energy [R]evolution Scenario decreases the costs of electricity generation compared to the Reference Scenario from 2020 onwards.Taking into account the costs of CO₂ emissions from 2020 onwards, the difference will be about 0.5 cents/kWh, increasing to 1.5 cents/kWh in 2050. Note that any increase in fossil fuel prices beyond the price projection given in Table 3 is a further direct burden on fossil electricity generation, and thus increases the cost gap between the two scenarios.

Due to growing demand, Indonesia faces a significant increase in society’s expenditure on electricity supply. Under the Reference Scenario, undiminished growth in demand, the increase in fossil fuel prices and the costs of CO₂ emissions result in electricity supply costs of around $60 billion in 2050.

Figure 39 shows that the Energy [R]evolution scenario not only complies with global CO₂ reduction targets but also helps to relieve the economic pressure on society. Increasing energy efficiency and shifting energy supply to renewable energy resources reduces the long term costs for electricity supply by nearly 30% compared to the Reference Scenario. It becomes obvious that following stringent environmental targets in the energy sector also pays off in terms of economics.