CLP boss Kadoorie lashes out at uncertainty over Australian energy policy

Michael Kadoorie, the chairman of CLP Holdings, unleashed a rare public expression of discontent towards Australia’s energy sector regulatory environment on Friday, despite the country being the company’s second largest profit source after Hong Kong.

“There is currently considerable market volatility and energy policy uncertainty in Australia,” he told a news conference after its shareholder annual meeting.

The uncertainty made it difficult for investors to make long-term commitments in the sector to meet the demand for reliable, affordable and cleaner energy, he said, adding such commitments often extend up to four decades, due to the long asset life and investment cycle.

“Given Australia’s current situation, creating those conditions [to attract investment] will be a challenge, but we believe a critical ingredient is a bi-partisan and national approach to energy that gives the industry the confidence to invest.

“Even more important [is policy stability] – we need to know that any decision we make today won’t be undone next year; there’s enough risk in this industry already from technology and intense competition without this policy uncertainty.”

Rising installations of roof-top solar panels on Australian homes have dampened demand for grid-delivered power in recent years.