The study compiles and develops cost scenarios on the different components of the energy system for both Efficiency and Business-as-Usual Scenarios.

 

The main indicators are the absolute total cost of energy supply and the total specific cost per energy unit supplied. All the costs from the different energies are expressed in Euro cent per kilowatt-hour (c€/kWh), always referring to a constant 2007 Euro. As far as possible, these scenarios incorporate an assessment on the externality costs.

 

Instead of relying on existing scenarios, we opted to develop our own cost scenarios following a more realistic approach and incorporating growing rates of inflation on limited and scarce resources. Nevertheless, the adopted approach is conservative and the inflation rates have been limited assuming the hypothesis that, even in the BAU Scenario, part of the world will move towards the Efficiency Scenario, so there will be less pressure on fossil resources.