future costs of electricity generation

Figure 6.8 shows that the introduction of renewable technologiesunder the Energy [R]evolution Scenario slightly increases the costsof electricity generation compared to the Reference Scenario. Thisdifference will be less than 0.1 cents/kWh up to 2020. Because ofthe lower CO2 intensity of electricity generation, by 2020 electricitygeneration costs will become economically favorable under theEnergy [R]evolution Scenario, and by 2050 generation costs will be6.9 cents/kWh below those in the Reference Scenario.

Under the Reference Scenario, on the other hand, unchecked growthin demand, the increase in fossil fuel prices and the cost of CO2emissions result in total electricity supply costs rising from today’s$6.1 billion per year to more than $26 bn in 2050. Figure 6.9shows that the Energy [R]evolution Scenario not only complies withChile´s CO2 reduction targets but also helps to stabilise energy costsand relieve the economic pressure on society. Increasing energyefficiency and shifting energy supply to renewables leads to longterm costs for electricity supply that are one third lower than in theReference Scenario.