Opportunities - "E-fuel contribution scenario The increased synergies between the transport and the power generation system can be considered as opportunities for improving the coupling of the two sectors. While the need for a significant production of synthetic fuels for transport implies increased investment expenditures on the power generation system, yet, the chemical storage of RES electricity implies relatively stable electricity prices in the long-term. The power generation system can achieve significant cost reductions by scheduling hydrogen and synthetic fuels production when low electricity prices prevail and using synthetic fuels when RES shortage occurs. The continued use of synthetic fuels and the exploitation of the existing refuelling infrastructure and reliance on ICE vehicles will not increase the investment expenditures of households and businesses related to the purchasing of transport equipment. This is in particular more relevant to freight transport businesses which will not need to pay significantly higher upfront capital costs for purchasing trucks equipped with advanced powertrains. This is also true for households, but to a smaller magnitude. EVs will continue facing reductions in the costs of batteries which at a certain point in time will not be a true burden to consumers. However, this scenario foresees a penetration of EVs and FCEVs with significantly higher vehicle range autonomies relative to the “No E- fuels” scenario. The higher ranges need higher capacity battery packs which result in even higher capital costs.
