Extreme weather has brought severe challenges to the world in recent years, and the climate crisis is clearly imminent.
To support Hong Kong’s goal of achieving carbon neutrality by 2050, CLP Power (CLP) actively promotes deep carbon reduction, and implements low-carbon power generation in both supply and demand, including phasing out coal-fired power generation and developing local renewable energy. Energy, research and development of new technologies such as green hydrogen energy, promote electrification, and strengthen regional cooperation to introduce new zero-carbon energy to reduce carbon emissions; and encourage customers to protect the environment and save energy.
In line with the government's long-term carbon reduction strategy in the "Hong Kong Climate Action Blueprint 2050", and striving to achieve carbon neutrality by 2050, CLP is committed to promoting energy transformation and has added two new gas-fired generating units at Lung Kwu Tan Power Plant, the first one. The D1 unit has been put into operation in 2020, and another gas-fired unit, D2, is expected to be put into operation before the end of 2023 to increase the proportion of natural gas power generation and phase out coal-fired power generation.
At the same time, CLP is building an offshore LNG terminal and adopting floating storage and regasification technology, which can further reduce the carbon intensity of power generation after it is put into use.
CLP will discuss with the government the phasing out of coal-fired power generation at Castle Peak Power Plant B in the 2030s, and the older coal-fired generating units at Castle Peak Power Plant A will also be phased out in the next few years.
After CLP's new D1 gas-fired generator set comes into operation in 2020, its local gas-fired power generation ratio will increase to about 50%.
Develop renewable energy and explore new zero-carbon technologies
CLP launched the "Renewable Energy Feed-in Tariff" scheme in 2018. As of the end of March this year, it has received more than 19,600 applications, with positive responses; the total power generation capacity that has been approved or connected to the grid is 287 MW, equivalent to approximately Annual electricity consumption of 64,800 households.
In addition, CLP said that wind power technology and equipment have become more mature and cost-effective in the past decade, and it is conducting preliminary studies on the feasibility of offshore wind farm projects in Hong Kong.
In terms of turning waste into energy, CLP's power generation project "CLP Green Source" in the West New Territories Landfill uses biogas generated from the landfill to generate electricity and connect it to the grid.
CLP is actively promoting the feasibility and pre-engineering study of offshore wind farms. The picture shows a schematic view of the offshore wind farm from the viewing position of Dalingdong in Clear Water Bay Country Park.
Multi-fuel mix stabilizes electricity prices
A diversified fuel mix is essential for power companies to maintain a stable and affordable electricity supply.
Jiang Dongqiang, President of CLP Power, said, "In the process of implementing low-carbon power generation, we will do our best to maintain a highly safe and reliable power supply for our customers." In addition to renewable energy, nuclear power plays an important role. About a quarter of Hong Kong's One's electricity supply comes from the Guangdong Daya Bay Nuclear Power Station, which imports nearly zero-emission nuclear power, enabling the local area to avoid more than 7.5 million tons of carbon dioxide emissions every year.
CLP and the government are studying to strengthen regional cooperation in zero-carbon energy, exploring more zero-carbon energy supply with surrounding areas, including seeking opportunities for co-investment and joint development, and participating in and operating zero-carbon energy projects near Hong Kong.
At present, CLP Group and General Electric (GE) have signed a memorandum of cooperation to explore the use of the latest technology to upgrade local gas-fired power generation infrastructure and support the use of low-carbon fuels such as hydrogen for power generation.
Nearly 20% of Hong Kong's greenhouse gas emissions come from transportation. In order to further reduce carbon emissions, CLP has cooperated with stakeholders to promote the electrification of public transportation and commercial vehicles, and also cooperated with the "Easy Charging Subsidy Scheme for EV Housing Estates" launched by the government. Provide electric vehicle charging support services for car parks of private residential buildings.
CLP actively promotes the development of local renewable energy and launched the "Fit-In Tariff" scheme, which has received positive feedback.
Make good use of innovative technology to work with customers to save energy and reduce emissions
The important task of carbon reduction requires public investment. In order to help customers manage electricity demand, promote energy conservation, and support the development of local renewable energy, CLP has launched a series of energy efficiency plans and support measures, such as the Green Building Fund, the energy-saving equipment upgrade plan, Validating engineering training programmes, renewable energy certificates and applying innovative technologies including the installation of smart meters support customers in reducing their carbon footprint.
As of the end of March this year, CLP has installed and connected more than 1.38 million smart meters for customers, allowing them to master detailed electricity consumption data and change their electricity consumption habits to reduce electricity consumption.
CLP also promotes the community to move towards a low-carbon green life through public education work on energy conservation and environmental protection covering the entire educational process from kindergarten to university.
Energy prices continue to rise, multi-fuel mix helps stabilize electricity prices
International fuel prices have continued to rise over the past year, and global fuel supply has become tight due to geopolitical and market factors.
In the case of Brent crude oil, prices have soared by more than 110% from the beginning of 2021 to the end of March 2022, while the prices of coal and natural gas have also soared.
Due to extremely volatile fuel costs, electricity bills for residential customers in many countries around the world have also been increasing. For example, electricity prices in France, Spain, Japan, Singapore and the United Kingdom have recorded increases of 10% to 69% respectively from 2021 to April this year.
Global energy costs are rising, and Hong Kong's "fuel adjustment fee" is no exception.
Former member of the Energy Advisory Committee and Associate Professor of the Department of Finance and Decision Sciences of Hong Kong Baptist University, Mak Cui Cai explained, "The fuel cost reflects the cost of energy, and due to factors such as the Russian-Ukrainian war, the fuel price has been rising in the past few months, which has caused considerable damage to the electricity bill. However, since a considerable part of CLP's fuel mix consists of nuclear power, which helps to ease electricity prices, the increase has been relatively stable."
According to the World Bank, the price of Brent crude oil has surged by more than 110% from the beginning of 2021 to the end of March this year, which is very volatile.
Fuel price fluctuates multi-pronged approach to control fuel costs
The electricity price is composed of the basic electricity price and the fuel adjustment fee. The "fuel adjustment fee" is adjusted monthly, which can go up or down to reflect the fluctuations of the international market and the actual fuel cost of the power company.
CLP's fuel costs are charged to customers on an "off-the-shelf" basis and do not make a profit.
As CLP uses a diversified fuel mix, including natural gas, coal and renewable energy, and imports nuclear power with relatively stable prices, nuclear power plays an important role in reducing the impact of market volatility when international fuel costs continue to soar.
CLP also strives to purchase fuel at competitive prices by optimizing the efficiency of its generating units and selecting different suppliers with different commercial terms.
At the same time, the "Fuel Price Adjustment Clause Account" under the Scheme of Control Agreement is used to alleviate the impact of fuel costs.
CLP expects that the international fuel prices will remain very volatile in the future, and will continue to prudently control fuel costs to minimize the impact of market fluctuations on customers.
CLP allocated more than 200 million to help communities increase electricity bills to promote energy conservation and carbon reduction
The epidemic has hit Hong Kong society hard. CLP has allocated about 220 million yuan this year to launch a number of community support programs to help people in need at all walks of life.
In order to relieve the pressure on electricity bills of grass-roots households, CLP allocated RMB 50 million to provide a one-time subsidy of RMB 1,000 to 50,000 eligible households through the CLP Wholehearted Transmission Program. The beneficiaries include the elderly and low-income families. , the disabled and 10,000 subdivided housing households.
Assisting SMEs to improve energy efficiency can help reduce their operating expenses. CLP allocated $33 million to support SMEs to carry out energy-saving improvement projects, including replacing or adding more energy-efficient lighting and air-conditioning equipment, and re-calibrating their buildings Projects, etc., to achieve energy saving and carbon reduction.
At the beginning of the year, another 80 million CLP consumer coupons were distributed to benefit households and small merchants
At the beginning of this year, CLP launched the CLP Consumer Coupon Program with a total value of RMB 80 million to nearly 800,000 eligible households, including low-power residential customers, customers with preferential electricity bills for the elderly, and 10,000 households in subdivided housing. A total of 100 yuan of consumer coupons will be distributed to households, and the plan will also bring sales to participating SME merchants.
Huang Wankun, the person in charge of Kun Kee Bamboo Sheng Noodles, who has participated in the program for two consecutive years, said, "Many diners use the CLP consumption coupons to dine in and buy takeaways. On the one hand, it helps the business and also benefits the neighbors."
(Information and photos provided by CLP)
