Transcribed

Net revenues after accounting for depreciation and investments for new power plants by scenario

Figure 3.9 Net revenues after accounting for depreciation and investments for new power plants by scenario, 2012-2035 Net revenues 14 12 New Investments 450 Policies 10 ($ 2011, billion) Scenario Scenario Renewables 6 020 8 778 Nuclear 942 1513 Fossil-fuel plants fitted with CCS 216 950 Fossil-fuel plants without CCS 1 803 2 507 2 New Policies 450 Scenario Scenario Trillion dollars (2011)

Net revenues after accounting for depreciation and investments for new power plants by scenario

shared by W.E.R.I on Jul 12

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For new power generation capacity, net revenues after accounting for depreciation are $3 trillion higher in the 450 Scenario than in the New Policies Scenario (Figure 3.9). The general shift towards a... 2 °C goal is reflected in the relative change in net revenues from the New Policies Scenario to the 450 Scenario, with renewables, nuclear and fossil-fuel plants fitted with CCS enjoying higher revenues as climate policies strengthen. Net revenues from new renewables capacity are 55% higher in the 450 Scenario than in the New Policies Scenario while the capacity additions over the projection period are 46% higher. In the 450 Scenario, new renewables capacity provides nearly two-thirds of all net revenues from new capacity in the power sector. The 450 Scenario sees nearly 1 400 GW of additional renewables capacity in 2035, compared with the New Policies Scenario. Fossil-fuel power plants without CCS play a significantly smaller role in the power sector in the 450 Scenario, with two-fifths less new capacity built than in the New Policies Scenario. Furthermore, higher carbon prices reduce the net revenues of new fossil-fuel plants without CCS in the 450 Scenario. In contrast, new plants with CCS see a marked increase in capacity and net revenues, reaching 570 gigawatts (GW) of installed capacity in 2035. Nuclear capacity additions increase by 60% in the 450 Scenario and the net revenues for each unit of capacity are higher, on average, due to elevated wholesale electricity prices. Combining the economic prospects for existing and new power plants, net revenues (after accounting for depreciation) for the power sector are $3 trillion higher in the 450 Scenario than in the New Policies Scenario. Stated simply, financial opportunities could improve in the 450 Scenario for power producers with a portolio of low-carbon technologies, including harnessing the benefits of CCS as a form of asset protection strategy.