Energy Industry's Challenges Identified, Agenda Takes Shape at WEC Montréal 2010

MONTREAL, September 16, 2010 - "The energy industry will follow a path of sustainable growth, aided by
existing technologies and a pledge to improve communication with government
and the public at national and international levels." This was the consensus
conclusion drawn from presentations and panel discussions at the World Energy
Congress 2010, which ended today. The Congress is held every three years and
brings together industry leaders, consultants, government officials and
politicians from around the world.

The Congress's concluding report, presented at the closing ceremony by
World Energy Council Chairman Pierre Gadonneix, cited three achievements
resulting from the four days:

    - A new agenda for the energy industry;

    - Identified the real constraints and opportunities faced in tackling the
      challenges of the coming decades;

    - Mapped the road ahead to adjusting energy policies and fostering
      international co-operation.

The New Agenda

The new agenda has an end goal of sustainable growth. At a time when all
countries are working to develop strategies to put the financial crisis
behind them, growth is a legitimate and worthwhile goal, Gadonneix said.
"Growth accompanied by, energy accessibility and availability contribute
concretely to improving the living standards of people."

According to Gadonneix, the industry must address three issues to achieve
sustainable growth:

    - Security of supply: Investment must be made in new infrastructures to
      keep up with demand. The challenge has been made more difficult by the
      recent financial crisis and the recent surge in oil and commodity
      prices. Many developing countries spend about 4% of their gross
      domestic product on oil and gas imports, and in some cases as much as
      15%, he said.

    - Environmental protection and climate change: The energy sector, which
      is responsible for 60% of greenhouse gas emissions, is at the fore of
      the debate on climate change.

    - Inequalities within countries and across the globe: Inequality hinders
      economic development and depresses demand. The industry must tackle the
      problem of "energy poverty" that sees two billion people without
      adequate sources of energy.

Constraints and Opportunities

Technologies to help meet the challenges of sustainable development
already are available. On the demand side, Gadonneix said that the industry
must proceed quickly to invest in zero-emission buildings, smart buildings,
and smart grids. On the supply side, while competitive technologies are
available, development is needed in the areas of nuclear plants, carbon
capture and storage, photovoltaic technologies, electricity storage and
sustainable bio-fuels.

Gadonneix said that there are enough natural resources to meet demand,
however there is a problem of uneven distribution across nations. Ensuring
security of supply will lead to an increase in energy prices. Oil and gases
are projected to last two more centuries, while coal will remain abundant for
even longer. There is enough uranium to fuel nuclear power plants for 200
years. And there is tremendous potential for development or renewable energy
sources such as hydroelectric, wind and solar power.

However, fossil fuel use is under pressure due to environmental concerns,
and concerns over water and land use affect hydro and other energy sources.
"The energy-water-food nexus is an important issue that will be addressed in
WEC's future work, Gadonneix said.

"Innovation where policies, institutions and governance are concerned
will be just as important as technological innovation," he said.

Policies and Governance

Gadonneix argued that markets alone cannot address all of the energy
industry's issues. Public policies are needed, and they need to be
established at both national and international levels. "We must find a new
balance between market and regulation," he said.

WEC's Assessment of Energy and Climate Public Policies aims to identify
fundamental principles to establish sound regulatory frameworks. "Energy
players require long-term horizons. 2030-2050 is a much more relevant horizon
than 2020," Gadonneix said. "Long-term policies are possible only if we keep
costs in check. This will require planning the roll-out of different
technologies, starting with those that are mature, while preparing others for
the market. As for less mature technologies, the first step is to encourage
and support research and development."

Norms and standards will play an important role as policies take shape,
and energy pricing must encourage investment, he said. "WEC will promote the
sharing of experiences on how to ensure the benefits of growth are equitably
shared. Innovations like smart grids and smart homes can be catalysts in
changing energy behaviours, and making people more aware of the value of our
resources."

Individual countries' initiatives to create a system of sustainable
energy must be made in a spirit of international co-operation, Gadonneix
said. "While some were disappointed by the results of the Copenhagen Summit,
we should not underestimate what was achieved. An agreement was reached
through the unprecedented mobilisation of more than 140 countries - proof
that we are now collectively aware of the issues at stake and willing to take
action. Copenhagen created real global impetus."

Gadonneix warned that the financial crisis should not be used as an
excuse to fall back on protectionism and isolationism. "We must design sound
and effective public policies to deliver the mitigation objectives adopted by
more than 70 countries in their commitments," he said. "We also must develop
new tools to efficiently channel public and private funds and foster, among
other things, technology transfer.

"Sustainable growth is no longer an option it is a necessity."

For further information: For further information: Chantal Dufresne, Head
of Public Relations and Media Relations, Tel.: +1-514-497-1007,
chantal.dufresne@wecmontreal2010.ca

For further information: For further information: Chantal Dufresne, Head of Public Relations and Media Relations, Tel.: +1-514-497-1007, chantal.dufresne at wecmontreal2010.ca