To Deliver Sustainable Energy Goals "We Need to Get Real," Says WEC Chairman

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Nuclear power generation that is combined with hydropower for mass low-carbon generation represents the most sustainable national power system in the world, according to a study by the World Energy Council (WEC) (London, England).

WEC's energy sustainability index compared 90 countries in terms of the trilemma that every government faces in setting its energy policy: Governments must consider balancing the needs for energy supply to be reliable, socially equitable and environmentally acceptable.

The 10 countries cited as achieving the best solutions with the most sustainable national systems were: Sweden, Switzerland, Canada, Norway, Finland, New Zealand, Denmark, Japan, France and Austria. Low-carbon sources are used by all these countries for a large share of their total electricity generation requirement.

The WEC did not include the nuclear shutdowns and ongoing policy uncertainty in Japan that came as repercussions of the 2011 Fukushima disaster, implying that the share of electricity previously supplied by nuclear power still counted in its consideration of that country.

Six of the top 10 countries use large hydropower for more than 30% of their power generation: Sweden, Switzerland, Canada, Norway, New Zealand and Austria. Five of the countries use nuclear to the same extent: Sweden, Switzerland, Finland, Japan and France.

The top three countries--Sweden, Switzerland and Canada--use large amounts of both nuclear and hydropower. Austria is 68% powered by hydro; France 75% powered by nuclear, plus 15% hydro; and Denmark is powered 29% by wind, with its exports complemented by nuclear imports, as 10% of its power comes from nuclear plants in Sweden.

Pierre Gadonneix, WEC chairman, said, "What makes the difference is how they set their final goals, how they balance market economics and public policies, and that they design the smartest policies in order to promote efficiency and to optimize costs, resources and investments in the long term. If we are to have any chance of delivering sustainable energy for all and meeting the +2Centigrade goal, we need to get real."

Mark Robson, a consultant from Oliver Wyman who compiled the report, noted that it takes cooperation from government and industry to achieve a good energy system. "Businesses must be assured that the economics of their investments won't be destroyed by changes in energy policy," he said. "This policy risk is a key factor in holding back energy investments today."

For related information, see December 7, 2012, article - OECD Report Looks at Leveling Playing Field for Grid Costs Between Dispatchables and Renewables.

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