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WEC: Statement by the World Energy Council's, avers that the world is far from achieving sustainable energy systems (04/12/2012)

4th December 2012

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The World Energy Council's (WEC) global ranking of country energy
sustainability performance has revealed that most of the over 90 countries
assessed are still far from achieving fully sustainable energy systems.

South Africa ranks 57 in WEC's Energy Sustainability Index which
highlights that coherent policies are crucial to performance.

South Africa dropped by two places to rank 57, driven mostly by a sharp
drop in energy security due to a decrease in the wholesale margin on liquid
fuel and weak performance on the diversification of electricity production.


The country struggles with all environmental indicators and has a very high
level of energy intensity per capita.

Brian Statham, Chairman of the South African National Energy Association
(SANEA) and Chairman of WEC's Studies Portfolio said South Africa's
intention to introduce more renewables into the energy mix through the IPP
programme would only reflect in the index once these projects were
operational.  Also, the latest census results reflecting an increase in
the number of homes with access to commercial energy had been too late for
consideration in the WEC study.
 
"We cannot be complacent since we are below the midpoint on all the energy
dimensions", said Statham.  "Crucial decisions on future energy supply
must be made within the next few months if we are not to slip further down the
scale."

The 2012 Energy Sustainability Index, published within the WEC's 2012
World Energy Trilemma report, "Time to get real - the case for sustainable
energy policy", finds that most countries still have not managed to balance the
energy trilemma. The WEC argues that countries must balance the trade-offs
between the three challenges of the trilemma: energy security, social
equity, and environmental impact mitigation, if they are to provide
sustainable energy systems.

The Index reveals that:

*         Environmental impact mitigation remains a universal problem;
*         Providing high-quality and affordable energy access remains a
significant challenge for developing and emerging economies; and
*         Countries at various stages of development struggle with energy
security.

The top 10 performing countries in the WEC index are Sweden, Switzerland,
Canada, Norway, Finland, New Zealand, Denmark, Japan, France and Austria,
respectively.

Pierre Gadonneix, Chairman of the World Energy Council, says:
"The message of the Energy Sustainability Index is clear: all countries
are facing the challenge in their transition towards more secure,
environmentally friendly, and equitable energy systems. What makes the
difference is how they set their final goals, how they balance market
economics and public policies, and how they design the smartest policies
in order to promote efficiency and to optimize costs, resources and
investments for the long term."

Joan MacNaughton, Executive Chair of the World Energy Trilemma report,
says: "Much still needs to be done to make our energy systems sustainable, but
there is good news.  While these top performers also tend to be richer
countries, some less affluent ones do also outperform their economic
peers. What distinguishes all these countries from the others is that they have
more effective and coherent policies."

Mark Robson, Partner of Oliver Wyman, the global consulting firm Oliver
Wyman which compiled the Index with the WEC, says:
"Providing sustainable energy is the responsibility of both government and
industry.  As governments weigh up their countries' priorities, businesses
must be assured that the economics of their investments won't be destroyed
by changes in energy policy. This policy risk is a key factor holding back
energy investments today. Therefore government and industry must engage in
active dialogue about structuring policies that remain stable over time
and are joined up with other policies."

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