future costs of electricity generation
Figure 6.67 shows that the introduction of renewable technologies under the Energy [R]evolution Scenario will lead to a significant reduction of 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 $133 billion per year to more than $870 bn in 2050. Figure 6.68 shows that the Energy [R]evolution Scenario not only meets the Middle East’s CO2 reduction targets but also helps to stabilise energy costs. Long term costs for electricity supply are one third lower than in the Reference Scenario.