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of global GDP, by 2035. Over the Outlook period, 63% of the support goes to Renewables - based electricity. Support per unit of generation on average worldwide drops over time, from $55 per megawatt-hour (MWh) in 2009 to $23/MWh by 2035, as wholesale electricity prices increase and their production costs fall due to technological learning. This does not take account of the additional costs of integrating them into the network, which can be significant in some cases, for example, because of the variability of some types of Renewables, such as wind and solar energy. The use of bio-fuels – transport fuels derived from biomass feedstock – is expected to continue to increase rapidly over the projection period, thanks to rising oil prices and government support. In the New Policies Scenario, global bio-fuels use increases from about 1 mb/d today to 4.4 mb/d in 2035. The United States, Brazil and the European Union are expected to remain the world’s largest producers and consumers of bio-fuels. Advanced bio-fuels, including those from ligno- cellulosic feedstocks, are assumed to enter the market by around 2020. The cost of producing bio-fuels today is often higher than the current cost of imported oil, so strong government incentives are usually needed to make them competitive with oil-based fuels. Globally, government support to bio-fuels is projected to rise to about $45 billion per year between 2010 and 2020, and $65 billion per year between 2021 and 2035. Government support typically raises costs to the economy as a whole. But the benefits can be significant too, including reduced imports of oil and reduced CO2 emissions – if sustainable biomass is used and the fossil energy used in processing the biomass is not excessive. 7. The Attractiveness of Renewable Energy Sources Expanded energy supplies are needed to support global economic development. Renewable energy sources are attractive candidates. Renewables come in many forms: Electricity generated from solar, wind, biomass, geothermal, hydropower, and ocean sources; heat generated from solar thermal, geothermal and biomass sources; bio-fuels and hydrogen obtained from renewable sources. Renewables are capable supplying most of worlds energy needs and therefore have the potential to support global economic development. Renewables technologies costs are continuing to decline, as production and markets expand. Renewables technologies have made considerable progress over the last few decades. Through technology development - much carried out through international collaboration - many Renewables options have reached levels of maturity that allow broad market deployment, while others are finding cost effective applications in expanding niche markets. The significant increase over the last few years of emerging technologies such as wind and both solar thermal and solar electric (PV) , as well as modern bioenergy plants, is concentrated in countries, which are leaders in R&D spending and in special initiatives by public and industry supporting the market introduction. Deployment efforts are needed in many EU Member States to give Renewables technologies the role it could play to foster a more sustainable energy supply in the long-term future. Renewables add to the diversity of the energy supply portfolio, and reduce the risk of energy price fluctuations, as well as constraints on supply. Distributed Renewables provide options to consumers not otherwise available. And Renewables are environmentally benign of the options available in current and near-term markets. Benefits from Renewables generally include some combination of the following: 25PDF Image | Economic Perspectives of Renewable Energy Systems
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