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The future of the energy supply sector and the role of nuclear power : what is the real price of energy?

Næss, Tord Berg; Knudsen, Markus Austevoll
Master thesis
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URI
https://hdl.handle.net/11250/2682753
Date
2020
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  • Master Thesis [3384]
Abstract
The IPCC has composed three different future pathways that dictates the level of emission and air pollution based on actions done in the coming century. Two of the scenarios demand comprehensive emission reduction, especially in the energy supply sector. Global macroeconomic trends point to a great increase in energy demand during the century, which entails that energy production should be produced in large by renewable sources. While it is agreed upon by most nations that renewable energy is preferred, their share in the energy mix is marginal compared to fossil sources. The higher price per produced unit has been the main limiter for increased share of renewables. Widespread energy cost-calculation methods like Levelized Cost of Electricity do not generally account for externalities from fossil fuels. Research shows that externalities such as air pollution and intervention with nature generates substantial welfare cost and should therefore be included when calculating the real price of electricity production. This paper sheds light on different aspects of energy production costs and will in context with the current plans and trends of the leading energy stakeholders provide a new angle to the outlook of a cost-efficient future energy mix.

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