5.3 future costs of electricity generation
Figure 5.6 shows that the introduction of renewable technologies under the Energy [R]evolution scenario significantly decreases the future costs of electricity generation compared to the Reference scenario. Up to 2020, generation costs in the Energy [R]evolution scenario are slightly higher than in the reference case, however this difference will be less than 0.3 €ct/kWh up to 2020. Because of high prices for conventional fuels and the lower CO2 intensity of electricity generation, electricity generation costs will become more economically favourable under the Energy [R] evolution scenario and by 2050 costs will be 2.7 €ct/kWh below those in the Reference version.
Under the Reference scenario, on the other hand, unchecked growth in demand, an increase in fossil fuel prices and the cost of CO2 emissions result in total electricity supply costs rising from today’s € 5 billion per year to more than € 15 billion in 2050. Figure 5.6 shows that the Energy [R]evolution scenario not only complies with Finland’s CO2 reduction targets, but also helps to stabilise energy costs and relieve the economic pressure on society. Increasing energy efficiency and shifting energy supply to renewables lead to long term costs for electricity supply that are more than 28% lower than in the Reference scenario.