OREANDA-NEWS. June 03, 2014. CLP Power Hong Kong Limited (“CLP Power”) announced it had submitted its response to the Government’s public consultation on Future Fuel Mix for Electricity Generation.

Considering the two options presented in the consultation, CLP is of the view that both options present opportunities and challenges. CLP believes that a “phased and flexible” approach, which combines both planning for initial gas units and intensive study for a new cross-border interconnector, would deliver the best long-term value for Hong Kong.

Specifically, under the phased and flexible approach, CLP considers that Hong Kong should:

Start now on planning the initial phase of Option 2 to support the local air quality and carbon objectives set by the Government for 2020 by building a small number of new gas units in Hong Kong.

In parallel, Hong Kong should start now on a detailed technical and commercial study for Option 1 to examine whether building the new cross-border interconnector can meet Hong Kong’s demand for highly reliable electricity supply, at what cost and how much low carbon energy Hong Kong could purchase, by when.

When this work is completed and before deciding whether to build the new interconnector or further gas units in Hong Kong, or a selective combination of the two, Hong Kong should review
the future demand for electricity and relative energy prices to avoid over-investment.

Mrs. Betty Yuen, Vice Chairman of CLP Power, said, “It is important that a future fuel mix decision does not compromise our extremely high supply reliability. CLP believes the approach will strike an appropriate balance between the main objectives of reliability, environmental performance and costs. That balance has also taken into account preserving flexibility and optionality in the long-term interests of Hong Kong.”