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CLP Group (its holding company is CLP Holdings Ltd) is an electricity company in Hong Kong with businesses in a number of Asian markets and Australia. Incorporated in 1901 as China Light & Power Company Syndicate, its core business remains electricity generation, transmission, and retailing.

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ENERGY

Energy policy will be transparent, says CLP chief Richard Lancaster

Chief of largest power firm says consumers will be told implications of each mix of sources

PUBLISHED : Monday, 21 October, 2013, 4:53am
UPDATED : Monday, 21 October, 2013, 4:53am

Hong Kong's energy future will rely on an "open and transparent" public consultation that will tell people the implications of their choices in favouring a particular energy mix, says the chief of the city's largest power firm.

Richard Lancaster, chief executive officer of CLP Holdings, said all relevant information, from energy security and environmental performance to costs, would be made available.

"All implications should be made as open and transparent as possible so that the community has all the information needed to make a judgment," he said at the World Energy Congress in Daegu, South Korea, last week.

Environment Secretary Wong Kam-sing, also speaking last week, said the consultation aimed to find out the most acceptable energy mix in terms of the proportion of coal, gas, renewable and nuclear in electricity generation by the power firms.

Any decision on the future mix will have significant bearing not just on cost, but also the environment and reliability.

While the mix was a matter for policymakers, Lancaster said it should be "flexible" enough to meet challenges, including the volatility of international fuel prices. "It is important we don't lose our flexibility and close all options," he said.

In 2010, the Environment Bureau consulted on a climate-change strategy that proposed a plan for half of electricity demand to be met by nuclear fuel, 40 per cent by gas and 10 per cent by coal by 2020. But it decided to reconsider it last year after the 2011Fukushima nuclear disaster. The mix is now 54 per cent coal, 23 per cent from nuclear and 23 per cent from natural gas.

Lancaster said to ensure supply diversity, he opposed closing all coal-fired plants. "Coal is something we can reduce. But to go to the extreme of closing down coal-fired plants, it would be a bad thing for us," he said.

Lancaster also wanted to diversify local gas supply by building a liquefied natural gas terminal in eastern Shenzhen which could bring in cheaper gas from around the world when international prices dropped.

On nuclear energy imports, Lancaster acknowledged there were "genuine concerns" that needed to be addressed. But he said one way of tackling these concerns was to have a Hong Kong firm involved in developing mainland nuclear stations.

"We have higher transparency, modern Hong Kong management style, Hong Kong standards of governance to apply for nuclear power stations," he said.

Christine Loh Kung-wai, the environment undersecretary who also attended the congress, said that while "some people" in society hated nuclear, she had heard of no one who wanted to completely drop imports from the Daya Bay nuclear station.

"Instead of just telling us nuclear should not be allowed, there needs to be an objective discussion on how we look at coal and gas," she said.

Loh, however, said it would be difficult for the government to tell the public exactly what future prices would be for different fuel mixes as even the most authoritative agency in the United Nations could only provide a loose range of prices.

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dynamco
so they import nuclear power from China to use in Hong Kong
Great
Then they burn coal at Castle Peak to create power that they sell into PRD and we suck in the fumes
OldPeak Toad
Mr. Lancaster can make a head start by telling us a bit more about:
1. What is the price and the exact supply arrangement for the gas from Kazakhstan?
2. What is CLP going to do with the 700 km gas pipeline from Hainan? Wasn't there some agreement - way back in 1994, that if there is more gas around Hainan, the gas would have to be made available to CLP? There is lots of gas there now. Why is CLP not taking it?
3. How much will CLP pay for surplus "green" electricity produced by the sludge incinerator, and from the future incinerator on Shek Kwu Chau?
seanniem
To rearrange the fuel mix in order to meet our unsustainable consumption of energy is much like changing brands of cigarettes when we are dying of cancer. The only sensible way to deal with this situation is by cutting back. We must have a major change in life style to lessen the demand side rather than focusing on the supply side.
 
 
 
 
 

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