future costs of electricity generation
Figure 6.78 shows that the introduction of renewable technologies under the Energy [R]evolution Scenario slightly increases the costs of electricity generation compared to the Reference Scenario. This difference will be about 0.5 cents/kWh in 2015. Because of the lower CO2 intensity of electricity generation, by 2020 these costs will become economically favourable under the Energy [R]evolution Scenario and by 2050 will be more than 5 cents/kWh below those in the Reference Scenario.
Due to growing demand, there will be a significant increase in society’s expenditure on electricity supply. Under the Reference Scenario, total electricity supply costs will rise from today’s $190 billion per year to $520 bn in 2050. Figure 6.79 shows that the Energy [R]evolution Scenario not only complies with the Transition Economies’ CO2 reduction targets but also helps to stabilise energy costs and relieve the economic pressure on society. Long term costs for electricity supply are one third lower than in the Reference Scenario.