CLP Holdings CEO Richard Lancaster said the firm is abandoning its long-time strategy of investing in Australia in favour of developing greenfield projects in mainland China and India. The company will seek to trim its power asset portfolio in Australia which it spent 15 years to build and saw it become the nation's third-largest power utility, as it shifts its expansion focus to growth markets. CLP, the larger of Hong Kong's two power suppliers, is looking at either selling or shutting down some of its power generating capacities Down Under, Lancaster told reporters. This came after it was forced to write down billions of HK dollars of assets in Australia due to a supply glut caused by slowing energy demand and lower prices. "We are looking at shrinking down our generating portfolio as we have too much generating assets compared to retail ones," Lancaster said. CLP had some HK$25.8 billion of assets, net of liabilities, in Australia, accounting for some 27 per cent of its total at last year's end, the same as the mainland and India combined. Most of them are in New South Wales (NSW) and Victoria states. Some are located in Queensland and South Australia. We are looking at shrinking down our generating portfolio as we have too much generating assets compared to retail ones Richard Lancaster, CLP chief Lancaster would not say in which states it is considering to trim assets, saying it will "look at its portfolio as a whole". Earlier this month, the Australian Financial Review reported that CLP's unit EnergyAustralia had approached private equity firms to potentially sell them some of those assets. Last year, it closed its 500-megawatt (MW) coal-fired Wallerrawang power station in NSW, joining rivals that also shut plants due to overcapacity. It has 2,867 MW of capacity, mainly coal-fired plants in NSW and Victoria. Credit Suisse regional head of utilities research Dave Dai said in a report that wholesale tariffs in NSW and Victoria have been rising in the past six months, so that future contracts for the next two years are trading at 7 to 10 per cent higher than six months ago. He said this reflects higher expected fuel costs in the future, which will offset the benefits from higher tariffs. Lancaster said CLP will focus its growth on building new power plants on the mainland, where it is building the second 1,200 MW generating unit of a coal-fired plant in the Guangxi autonomous region, and in India, where it is doing a feasibility study to build a coal-fired plant of up to 2,000 MW. The planned India plant will take 30 months to build after approvals are obtained.