future costs of electricity generation

The introduction of renewable energy technologies under the Energy [R]evolution Scenario decreases the costs of electricity generation of new power plants compared to the Reference Scenario from 2010 onwards.Taking into account the costs of CO₂ emissions from 2020 onwards, the difference will be about about AUD 2 cents/kWh in 2050 in favour of the Energy [R]evolution scenario. Note that any increase in fossil fuel prices beyond the price projection given in Table 4 is a further direct burden on fossil electricity generation, and thus increases the cost gap between the two scenarios.

Under the Reference Scenario, Australia faces a significant increase in expenditure on electricity.The continuing growth in demand, increases in fossil fuel prices and the costs of CO₂ emissions will result in electricity supply costs nearly doubling from AUD $11.7 billion per year today to AUD $30.9 billion per year in 2020.The Energy [R]evolution Scenario, on the other hand, not only complies with global CO₂ reduction needs but also stabilises energy costs, thus relieving economic pressure on consumers. Increasing energy efficiency and shifting energy supply to renewable energy resources in the long term leads to falls in electricity prices.The Energy [R]evolution Scenario therefore makes both environmental and economic sense.