future costs of electricity generation

Figure 5.6 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 2015 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 insociety’s expenditure on electricity supply. Under the ReferenceScenario, total electricity supply costs will rise from today’s $104billion per year to $333 bn in 2050. Figure 5.7 shows that theEnergy [R]evolution Scenario not only complies with Russian CO2reduction targets but also helps to stabilise energy costs and relievethe economic pressure on society. Long term costs for electricitysupply are one third lower than in the Reference Scenario.