DOCSLIB.ORG

Searching for New Directions a Study of Hong Kong Electricity Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Searching for New Directions a Study of Hong Kong Electricity Market LC Paper No. CB(4)231/14-15(02) Searching for New Directions A Study of Hong Kong Electricity Market SEARCHING FOR NEW DIRECTIONS A STUDY OF HONG KONG ELECTRICITY MARKET Hong Kong Consumer Council December 2014 Searching for New Directions – A Study of Hong Kong Electricity Market Table of Content Executive Summary .................................................................................................. i-xiv Chapter 1 Introduction .................................................................................................. 1 Competitive Electricity Market ........................................................................................... 2 Chapter 2 Overseas Experience ..................................................................................... 5 Government Environmental Policy ..................................................................................... 5 Market-based instruments ................................................................................. 6 Nuclear option .................................................................................................... 8 Competition ......................................................................................................................... 9 Structure and reform ......................................................................................... 9 Reconsolidation ................................................................................................ 10 Retail competition ............................................................................................ 12 Regulation .......................................................................................................................... 14 Regulatory models ........................................................................................... 14 Regulatory methodology .................................................................................. 16 Price cap regulation .......................................................................................... 16 Critical mass...................................................................................................... 18 Independence ................................................................................................... 18 Consumer representation ................................................................................ 19 Regulation and consumer protection .............................................................. 21 Tariff-based measures or social security? ........................................................ 22 Overall Conclusion ............................................................................................................. 24 Chapter 3 Development of the Electricity Market in Southern China ............................ 26 Overview of the Electricity Market in China ..................................................................... 26 Electricity capacity and production in China .................................................... 28 Reform in the Electricity Sector ........................................................................................ 32 Structural reform .............................................................................................. 32 Market reform .................................................................................................. 33 Electricity market at Guangdong province ....................................................... 35 Future developments in electricity market in Guangdong .............................. 37 Chapter 4 Hong Kong Electricity Market ...................................................................... 42 Hong Kong Current Energy Policy ..................................................................................... 44 Scheme of Control ............................................................................................................. 46 Tariff adjustment mechanism .......................................................................... 47 Supports from Mainland China to Hong Kong energy market ......................... 48 Development of Renewable Energy in Hong Kong .......................................................... 49 Solar energy ...................................................................................................... 49 Wind energy ..................................................................................................... 50 Waste-to-energy .............................................................................................. 50 Searching for New Directions – A Study of Hong Kong Electricity Market Initiatives of demand side management from power companies ................... 51 Government Future Energy Policy .................................................................................... 51 Reasons for the fuel mix review ....................................................................... 52 Overall Conclusion ............................................................................................................. 55 Chapter 5 Key Issues of Market Structure Reform ........................................................ 57 Hong Kong Context ........................................................................................................... 57 Supply Side Context and Measures .................................................................................. 59 Introducing competition to the Hong Kong electricity sector ......................... 59 Wholesale competition .................................................................................... 60 Retail Competition ............................................................................................................ 61 Retail competition between CLP and HEC ....................................................... 61 New entrant option .......................................................................................... 62 Interconnection of CLP and HEC ...................................................................... 63 The nuclear option ........................................................................................... 65 Renewable Sources of Energy ........................................................................................... 67 Hong Kong’s resources ..................................................................................... 67 Methods to stimulate investment ................................................................... 70 Conclusion on renewables ............................................................................... 72 The Role of Gas .................................................................................................................. 74 Town gas ........................................................................................................... 75 Natural gas as a power station fuel .................................................................. 77 Co-generation ................................................................................................... 78 Reliability Dimension ......................................................................................................... 79 Generation adequacy ....................................................................................... 80 Plant breakdowns ............................................................................................. 81 Weather conditions .......................................................................................... 81 Available capacity ............................................................................................. 81 Alternative ways to meet peaks ....................................................................... 81 Network failures ............................................................................................... 82 Other influences on supply security ................................................................. 83 Conclusion on reliability ................................................................................... 84 Chapter 6 Consumer Perspectives ............................................................................... 88 Participation with Respect to the Environmental Objective ............................................ 88 Motivating Consumers ...................................................................................................... 89 Energy efficiency .............................................................................................. 90 Demand side management .............................................................................. 91 Smart meters .................................................................................................... 92 Domestic household consumers ...................................................................... 93 Commercial consumers .................................................................................... 94 Summary on demand side management ......................................................... 95 Searching for New Directions – A Study of Hong Kong Electricity Market Consumer Welfare – Energy Poverty Dimension ............................................................. 97 Fuel poverty ...................................................................................................... 98 Social tariffs ....................................................................................................
Load more

Recommended publications
  • THE ASIA-PACIFIC 02 | Renewable Energy in the Asia-Pacific CONTENTS
    Edition 4 | 2017 DLA Piper RENEWABLE ENERGY IN THE ASIA-PACIFIC 02 | Renewable energy in the Asia-Pacific CONTENTS Introduction ...................................................................................04 Australia ..........................................................................................08 People’s Republic of China ..........................................................17 Hong Kong SAR ............................................................................25 India ..................................................................................................31 Indonesia .........................................................................................39 Japan .................................................................................................47 Malaysia ...........................................................................................53 The Maldives ..................................................................................59 Mongolia ..........................................................................................65 Myanmar .........................................................................................72 New Zealand..................................................................................77 Pakistan ...........................................................................................84 Papua New Guinea .......................................................................90 The Philippines ...............................................................................96
    [Show full text]
  • M Beneficiaries of the Greater Bay Area's Transition to Low- Carbon
    MM October 13, 2019 10:43 PM GMT China's Urbanization 2.0 Beneficiaries of the Greater Bay Area's Transition to Low- Carbon Energy Nuclear is the best option for GBA's transition to low carbon. We double upgrade CGN Power to OW and upgrade HKEI to OW. Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. += Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to NASD/NYSE restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. MM Contributors MORGAN STANLEY ASIA LIMITED+ MORGAN STANLEY ASIA LIMITED+ Simon H.Y. Lee, CFA Beryl Wang Equity Analyst Research Associate +852 2848-1985 +852 3963-3643 [email protected] [email protected] MORGAN STANLEY ASIA LIMITED+ MORGAN STANLEY ASIA LIMITED+ Yishu Yan Eva Hou Research Associate Equity Analyst +852 3963-2846 +852 2848-6964 [email protected] [email protected] MM China's Urbanization 2.0 Beneficiaries of the Greater Bay Area's Transition to Low- Carbon Energy uclear is the best option for GBA's transition to low carbon.
    [Show full text]
  • Hong Kong Energy End-Use Data 2013
    香港能源最終用途數據 2013 Hong Kong Energy End-use Data 2013 有關本刊物的查詢，請聯絡： 機電工程署 能源效益事務處 地址：香港九龍灣啟成街３號７樓 電話：(852) 2808 3465 圖文傳真：(852) 2890 6081 電郵：[email protected] Enquiries about this publication can be directed to : The Energy Efficiency Office Electrical & Mechanical Services Department Address: 7/F, 3 Kai Shing Street, Kowloon Bay, Hong Kong Tel. No. : (852) 2808 3465 Fax. No. : (852) 2890 6081 E-mail : [email protected] 機電工程署網站 Website of Electrical & Mechanical Services Department http://www.emsd.gov.hk 聲明 雖然香港特別行政區政府機電工程署在擬備此套能源最終用途數據時，已盡力確 保資料準確完備，但不論數據使用者以何種形式應用此套數據，如因此而引致任 何損失或損害，機電工程署概不承擔任何責任。 Disclaimer Although every care has been exercised to prepare this set of energy end-use data, the Electrical & Mechanical Services Department of the Government of the Hong Kong Special Administrative Region shall not accept any liability for loss or damage occurring as a consequence of reliance by the data user in whatever form on this set of data. 00 目錄 Table of Contents Table of Contents P.1 Introduction P.3 Key Energy End-use Related Data P.5 By Sectors P.17 By Fuels P.18 By Sectors & Segments P.19 Segments of Residential Sector P.19 Segments of Commercial Sector P.23 Segments of Industrial Sector P.27 Segments of Transport Sector P32P.32 By Sectors & Fuels P.35 Residential Sector P.35 Commercial Sector P.37 Industrial Sector P.39 Transport Sector P.41 By End-uses P.43 By Fuels & End-uses P.45 Electricity End-uses P.45 Oil & Coal Products End-uses P.47 Town Gas & Liquefied Petroleum Gas End-uses P.49 Energy distribution P.51 Renewable Energy in Hong Kong P.53 Notes P.55 Notepad PP57.57 01 目錄 P.1 引言 P.3 主要最終能源使用有關數據 P.5 按類別劃分 P.17 按燃料劃分 P.18 按類別及組別劃分 P.19 住宅組別 P.19 商業組別 P.23 工業組別 P.27 運輸組別 P32P.32 按類別及燃料劃分 P.35 住宅類別 P.35 商業類別 P.37 工業類別 P.39 運輸類別 P.41 按最終用途劃分 P.43 按燃料及最終用途劃分 P.45 電力最終用途 P.45 油及煤產品最終用途 P.47 煤氣及石油氣最終用途 P.49 能源分配 P.51 香港的再生能源 P.53 註釋 P.55 備忘 PP57.57 02 引言 Introduction Introduction 1.
    [Show full text]
  • The Power to Shape Global Opportunities
    Cheung Kong Infrastructure Holdings Limited Cheung Kong Infrastructure Holdings Limited Cheung Kong Infrastructure Holdings Limited Annual Report 2004 12th Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong (Incorporated in Bermuda with limited liability) Annual Report 2004 THE POWER TO SHAPE GLOBAL OPPORTUNITIES CKI is the largest publicly listed infrastructure CONTENTS company in Hong Kong with diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure and Infrastructure Related Business. Operating in Hong Kong, Mainland China, Australia, the United Kingdom, Canada and the Philippines, it is a leading player in the global infrastructure arena. 02 Nine-Year Financial Summary 36 Financial Review 04 Chairman’s Letter 38 Board and Senior Management 08 Key Growth Strategy 44 Report of the Directors 10 A New Chapter for CKI 64 Report of the Auditors 14 A Year of Acquisition 65 Consolidated Income Statement 16 Business Review 66 Balance Sheets 16 Investment in Hongkong Electric 67 Consolidated Statement of Changes in Equity 20 Infrastructure Investments – Energy 68 Consolidated Cash Flow Statement 24 Infrastructure Investments – Transportation 69 Notes to the Financial Statements 28 Infrastructure Investments – Water 109 Principal Subsidiaries 32 Infrastructure Related Business 111 Principal Associates 114 Principal Jointly Controlled Entities 115 Extracts of Financial Statements of Hongkong Electric 117 Schedule of Major Properties 118 Project Profiles 126 Corporate Information THE YEAR AT A GLANCE Profit attributable to shareholders (HK$m) 3,556 Earnings per share (HK$) 1.58 Dividends per share (HK$) 0.79 Annual Report 2004 01 CKI is the largest publicly listed infrastructure CONTENTS company in Hong Kong with diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure and Infrastructure Related Business.
    [Show full text]
  • ICE Breaker Newsletter of ICE Hong Kong 2018 Issue 1 Messages and News Together We Can!
    ICE Breaker Newsletter of ICE Hong Kong 2018 Issue 1 Messages and News Together we can! ear Fellow members and friends, D We are now into the final quarter of the 2017/18 session for the ICE HKA committee. It has been a remarkably challenging and fruitful time for the committee. On top of our usual suite of high quality learned society activities, we have been exceedingly bold in launching an ambitious ICE 200 programme around three strands, namely knowledge, branding and inspiration. Our vision for this milestone year of the ICE bicentenary is to enthuse the profession, enhance our public image and inspire the next generation. Our ICE 200 events are centred around the TECH (ie technology, engineering, climate and humanitarian) themes. Some of our flagship events to date are as follows: (a) Innovation Summit on 12 January 2018. The Honourable Mrs Carrie Lam, Chief Executive of HKSAR Government, gave the opening address as the Guest of Honour. (b) Distinguished Lecture on 13 March 2018 delivered by Dr Robin Sham, CBE, and Dr Ana Ruiz-Teran from Imperial College London. Mr Andrew Heyn, British Consul-General to Hong Kong and Macao, gave the opening address as the Guest of Honour. (c) Grand Opening of the World’s Longest Span LEGO® bridge on 21 March 2018. The Honourable Mr Matthew Cheung, Chief Secretary for Administration, was the Guest of Honour for the Grand Opening Ceremony. About 80 students from 8 schools contributed to pre-assembling the bridge components. The LEGO® bridge was displayed to the public in ELEMENTS for one month.
    [Show full text]
  • Annual Report 2015
    The Hong Kong and China Gas Company Limited The Hong Kong and China Gas Company Limite (Stock Code: 3) Annual Report The Hong Kong and China Gas Company Limited d 香港中華煤氣有限公司 Annual Report 2015 23rd Floor, 363 Java Road, North Point, Hong Kong www.towngas.com 201 5 k h . m o c . t a m r o f . w ww D E T I M I L T A M R O F : N G I S E D CONTENTS 04 Business Coverage in 2015 06 Business Highlights 07 Five-Year Summary 08 Chairman’s Statement 16 Board of Directors 17 Biographical Details of Directors 21 Executive Committee 22 Mainland Utility Businesses 32 Hong Kong Gas Business 40 New Energy and Diversied Businesses 48 Corporate Social Responsibility 58 Risk Factors 59 Financial Resources Review 60 Five-Year Financial Statistics 61 2015 Financial Analysis 62 Comparison of Ten-Year Results 64 Report of the Directors 74 Corporate Governance Report 85 Independent Auditor’s Report 86 Consolidated Income Statement 87 Consolidated Statement of Comprehensive Income 88 Consolidated Statement of Financial Position 90 Consolidated Cash Flow Statement 92 Consolidated Statement of Changes in Equity 94 Notes to the Consolidated Financial Statements 181 Corporate Information and Financial Calendar Slide out the transparent sheet to experience our innovation! As Hong Kong’s first public utility as well as one The Group’s innovative thinking has the of the leading energy providers on the mainland, opportunity to bear fruit because the Towngas we understand the importance of innovation. team is dedicated to recognising bright It is the key to our sustaining contribution in ideas, refining and implementing them in a a rapidly changing business landscape.
    [Show full text]
  • 中電資料冊 CLP INFORMATION KIT 1 ABOUT CLP Who We Are
    中電資料冊 CLP INFORMATION KIT 1 ABOUT CLP Who We Are ......................................................................................................................................................... 1 Facts and Figures ..............................................................................................................................................2 2 SCHEME OF CONTROL AGREEMENT What is the Scheme of Control Agreement (SCA)? ........................................................................5 Key Terms in the Current SCA ....................................................................................................................6 Regulatory Process ..........................................................................................................................................7 Evolution of the SCA ....................................................................................................................................... 8 Current SCA (2018–2033) .............................................................................................................................9 CLP’s New Five-year Development Plan (2018–2023) ..............................................................12 CLP's Performance under the SCA ....................................................................................................... 14 3 ELECTRICITY TARIFF CLP Tariff Components ................................................................................................................................19
    [Show full text]
  • AESC Working Paper 11
    AESC Working Paper 11 Risk perception, trust and public engagement in nuclear decision-making in Hong Kong Daphne Ngar-Yin Mah1, Peter Hills2 and Julia Tao3 Publication Date: Nov 2014 Original Publication date: Sept 2013 1 Director and Assistant Professor, Asian Energy Studies Centre and Department of Geography, Hong Kong Baptist University; Honorary Assistant Professor, The Kadoorie Institute, The University of Hong Kong 2.Chair Professor, The Kadoorie Institute, The University of Hong Kong; Fellow, Asian Energy Studies Centre, Hong Kong Baptist University 3 Adjunct Professor, Office of the Provost, City University f Hong Kong This paper is work-in-progress and the authors welcome constructive feedback. The paper should not be quoted without the permission of the authors. Correspondence to lead author: [email protected] Title Page Risk perception, trust and public engagement in nuclear decision-making in Hong Kong Daphne Ngar-yin Mah Assistant Professor, Department of Geography, Hong Kong Baptist University Honorary Assistant Professor, The Kadoorie Institute, The University of Hong Kong Tel: (852) 3411 5941 Fax: (852) 3411 5990 Address: 12/F, Academic and Administration Building, 15 Baptist University Road, Kowloon Tong, Hong Kong Peter Hills Chair Professor, The Kadoorie Institute, The University of Hong Kong Julia Tao Adjunct Professor, Office of the Provost, City University of Hong Kong Corresponding Author Daphne Ngar-yin Mah Assistant Professor, Department of Geography, Hong Kong Baptist University; Honorary Assistant Professor, The Kadoorie Institute, The University of Hong Kong 1 Abstract The extent to which nuclear energy can be a feasible energy option has re-emerged as a subject of widespread debate following the Fukushima accident in Japan.
    [Show full text]
  • Annual Report 13
    The Hong Kong and China Gas Company Limited (Stock Code: 3) 20annual report 13 DEVELOping ENVIRONMenTALLY- FRiendLY NEW EneRGY Advancing our expertise to remain at the forefront of the new energy sector A LeadeR in MainLand UTILITIES Forging strong partnerships and excellence in safety, service and engineering CONTinuOUS INNOVATION in HONG KONG Broadening the scope of our activities and developing renowned products and services In total, we have invested We operate In January 2014, Towngas was the Top Winner in 173 proJects in 119 citY-gas we issued our at the Hong Kong Most mainland China covering proJects in 20 FIRST PERPETUAL Admired KnoWledge city-gas, city-water, provinces, autonomous SUBORDINATED Enterprise AWards wastewater treatment, regions and municipalities GUARANTEED 2013, recognising the natural gas pipelines, in mainland China, serving , synergy between our telecommunications and the CAPITAL SECURITIES 17.29 million accounts, production of gas-related amounting to innovative culture and equivalent to a population materials and devices. US$300 million with knowledge management of 52 million. interest rate of 4.75 per cent and its impact on our quality p.a. and non-call five-year. products and services. EXPANDING New Horizons Over the last decade and a half, we have undergone a wide-ranging transformation that has enabled us to grow from a local town gas supplier in Hong Kong into a leading Asian provider of energy. Guided by our management theme “Expanding New Horizons”, our key strategic goal is to create long-term, multifaceted and sustainable growth with a focus on utilities, energy and infrastructure. We were honoured to We became the first Currently under implementation ECO now has receive the “Innovation and city-gas supplier to invest are four state-of-the-art 25 REFILLING Creativity Grand Award” in an underground NEW ENERGY PLANTS STATIONS at the 2013 Hong Kong gas storage facility including converting coke in operation, under Awards for Industries for in mainland China.
    [Show full text]
  • Reprint 965 Potential of Wind and Solar Energy in Hong Kong B.Y. Lee
    Reprint 965 Potential of wind and solar energy in Hong Kong B.Y. Lee & H.Y. Mok Symposium on E-Management - Challenges and Opportunities, Hong Kong, 28 May 2010 Potential of wind and solar energy in Hong Kong B.Y. Lee and H.Y. Mok Hong Kong Observatory, Hong Kong, China E-mail: [email protected] ABSTRACT Located at the coast of south China, Hong Kong has sub-tropical climate. Analysis of winds and direct solar radiation levels measured by the Hong Kong Observatory provides information on the potential of wind and solar energy resources in Hong Kong. It was found that a high wind energy potential is possible in such exposed places as hilltops and offshore waters. In respect of solar energy, large open space for its capture is hard to come by and is costly if it is available. However, given the abundance of solar energy in Hong Kong, there is plenty of room for creative solutions if consideration is given to the capture of solar energy by buildings and other structures. Introduction Currently, a majority of energy resources in the world are derived from fossil fuels which scientists believe to have very likely led to global climate change as a result of release of greenhouse gases into the atmosphere. The World Meteorological Organization's Greenhouse Gas Bulletin 2008 released in November 2009 reminds us once again the imminent carbon dioxide issue --- the latest concentration is 385 ppm (parts per million), up 2 ppm from the previous year and 100 ppm from the pre-industrial era. It has been pointed out that at any given moment the world requires a maximum of about 12.5 TW (T is tera, i.e.
    [Show full text]
  • CLP Brings Free Electrons to Hong Kong to Connect Global Utilities and Start-Ups
    in 中電控股有限公司 CLP Holdings Limited 27 June 2019 CLP Brings Free Electrons to Hong Kong to Connect Global Utilities and Start-ups CLP Holdings Limited (CLP) plays host to Free Electrons, the global energy start-up accelerator programme, in Hong Kong this week, forging new collaboration opportunities between utilities and some of the world’s most innovative entrepreneurs on next- generation energy technologies. During the week-long event, 15 start-up companies met and pitched to Free Electrons’ 10 member utilities of their new products and services that are backed by digital technologies including artificial intelligence, data analytics and the Internet of Things. Free Electrons was founded two years ago by an international alliance of utilities and start- up accelerators with a goal to make energy services more user-centric, efficient and sustainable. Through running annual editions that comprise a series of meetings held in different cities, Free Electrons aims to connect leading electricity companies and start-ups to fast-track the development of new energy solutions. A highlight of the Hong Kong event was the CLP and Free Electrons Ecosystem Immersion Day held today for more than 200 executives, entrepreneurs, technologists, business partners, investors and policy makers to gain insights into the latest innovations and business models empowering the transition to smarter and cleaner energy in Hong Kong, the Greater Bay Area, and beyond. “It is our privilege to bring Free Electrons to Hong Kong for the first time. As a densely populated city with the world’s highest concentration of skyscrapers, a reliable and efficient electricity supply is extremely important for us all.
    [Show full text]
  • Energy Scene of Hong Kong
    Energy Scene of Hong Kong Dr. K.M. LEUNG, Chief Engineer / Energy Efficiency A Frank CHU, Senior Electrical and Mechanical Engineer Jimmy HUI, Electrical and Mechanical Engineer Energy Efficiency Office Electrical and Mechanical Services Department Government of HKSAR Abstract riers play their respective roles in serving the final en- ergy demand - electricity, gas, and oil products. These In Hong Kong, three major types of energy carriers three types of energy carriers serve quite different end- play their respective roles in serving the final energy uses, with limited degrees of competition amongst demand - electricity, gas, and oil products. In this them. For the energy supply sector, the private sector paper, the electricity demand and supply situation of is relied upon to supply Hong Kong's energy require- Hong Kong is described. Overall energy consumption pattern of Hong Kong is outlined. A ments. These are a number of power stations and town- comparison of energy intensity figures between Hong gas plants. There are no refineries in Hong Kong. Kong and other economies is also made. The results of a recent study on benchmarking of energy Carbon dioxide emissions account for over 99% (by consumption indicators of office buildings and retail weight) of the greenhouse gas emissions of Hong premises are highlighted. Kong, and the energy sector is the major contributor to Hong Kong's carbon dioxide emissions. Electricity The Government of HKSAR has completed a study on generation alone accounts for over 60% of all carbon the potential applications of renewable energy in dioxide emissions. Hong Kong. Some study results are presented.
    [Show full text]