Powering Hong Kong s Sustainable Development. Betty Yuen Managing Director CLP Power

Transcription

1 Powering Hong Kong s Sustainable Development Betty Yuen Managing Director CLP Power 6 December

2 Powering the Development of Hong Kong CLP Power s Operating Statistics HK s Electricity Consumption Population Served 5 million + Customer Number 2.2 million Installed Capacity 8,888 MW 20-fold increase in 40 years Sales 30,000 GWh

3 Some Facts about Hong Kong s Energy Requirements HK s total energy requirement is about the same as that of New Zealand, 2/3 of Singapore and 1/6 of Taiwan HK is 100% dependent on imported energy HK is an international finance centre with 50% of the population living or working above 15 th floor 3

4 HK s Primary Energy Requirements 46% Fuel for power generation 7% * Source: Hong Kong Energy Statistics 2005 Annual Report Coal Nuclear Natural Gas 14% Oil / Naphtha 33% Fuel for transportation, towngas, industrial and other uses Fuel for electricity generation accounts for almost 70% of all energy consumed in Hong Kong 4

5 CLP Provides Highly Reliable Supply at Competitive Prices 99.99% reliability, among the world s best Tariffs frozen since 1998 Affordable tariffs account for 1.9% of monthly household expenditure Tariffs among the lowest in major metropolitan cities Power interruption time (mins per customer per year*) CLP Power 6 New York 11.8 Paris 12.8 London 40 Sydney 42 Residential Tariff HK cents/kwh (as of January 2006) *Average Source: UMS Group; EDF; EnergyAustralia Regulated market Competitive market New York Luxembourg Berlin Rome Brussels Amsterdam Madrid Tokyo London Lisbon Wellington Paris Singapore Seoul Sydney CLP Power Shenzhen Shanghai Vancouver Taipei Jakarta Kuala Lumpur Remarks: Comparison based on annual domestic consumption of 3,300 kwh. Tariff and exchange rate at Jan

6 Higher Reliability at Comparable Tariffs to Mainland Cities Tariff in 2006 (HK cents/kwh) Large Industrial Commercial CLP Power Beijing Shanghai Foshan Guangzhou Zhuhai Huizhou Jiangmen Shenzhen Zhaoqing Zhongshan Dongguan Interruption Hours in 2004 (hours/year) Source: Beijing Power Supply Co; Shanghai Municipal Electricity Power Co; Guangdong Price Information; China Electricity Council 6

7 CLP s Fuel Diversification Similar to Developed Countries CLP (2005) Nuclear 29% Oil 1% Gas 31% Coal 39% A balanced fuel mix is important for supply reliability and tariff management Nuclear 23% Hydro 10% Others 3% Hydro 15% Nuclear 29% Japan * Others 2% Gas 24% Coal 28% Gas 18% Oil 13% Coal 30% Europe * Oil 5% North America* Others 2% Hydro 13% Nuclear 18% Gas 16% Oil 5% Nuclear 2% Gas Nuclear 1% 2% Hydro 15% Oil 3% Coal 46% Coal 79% Coal 79% * Mainland China * Percentages quoted for fuel combination are 2003 figures Source: International Energy Agency 7

8 Significant Environmental Improvements Emissions Reduction ( ) Total Emission (kilotonne) Electrostatic Precipitator ( ) 0 Low NOx Burner Nuclear Power Natural Gas NO x Particulates SO 2 44% 77% 70% Note: Local sales grew by 70% in the period Use of ultra-low sulphur coal Year Achieved significant emissions reductions from early 1990s through the use of emissions abatement technology and introduction of cleaner energy sources 8

9 CLP is Committed to Meeting 2010 Target Import Liquefied Natural Gas (LNG) Install Emissions Control Equipment for Coal Units Increase use of Ultra Low Sulphur Coal Promote energy efficiency Feasibility studies of Onshore and Offshore Wind Projects Other possible options to be explored 9

10 Natural Gas is Crucial to Supply Reliability and Clean Air CLP s Black Point Power Station (2,500 MW) is one of largest gasfired power station in the world, using natural gas for more than 10 years The existing gas supply to Black Point, the Yacheng gas field, is expected to deplete early next decade A secure and reliable gas supply is needed to refuel Black Point 10

11 Benefits of Using LNG LNG transportation and usage has an outstanding safety record extending over 40 years LNG is the cleanest fossil fuel available for power generation CO 2 (carbon dioxide) NO x (nitrogen oxide) Natural gas produces no particulates & SO 2 Coal 100 Oil 80 Natural Gas 57 Coal 100 Oil 71 Natural Gas

12 The LNG Supply Chain HONG KONG Natural Gas Field Liquefaction Terminal Marine Transportation Receiving Terminal Sendout LNG by pump Natural gas via pipeline LNG Storage Tank (for temporary storage) Vaporizer (for regasification) Black Point Power Station (for power generation) 12

13 Why Hong Kong Needs a LNG Terminal? South China gas reserves either committed to others or insufficient to meet CLP s large volume requirements CLP s requirements of 2.6 MTA are 8 times the size of Towngas or Hongkong Electric Could take up almost all the volume currently available for the Shenzhen Dapeng LNG Terminal which serves more than 10 users Timing for new terminals in Guangdong is uncertain Only a Hong Kong LNG terminal can meet CLP s large volume in the time-frame required 13

14 A Local LNG Receiving Terminal is the Best Option for Hong Kong Time certainty : Faster project development under one jurisdiction. Upon timely GOHK approval, project development can start in 2007 for completion in 2011 Supply security : CLP could directly deal with LNG suppliers without a middleman Hong Kong s gas needs would be served as priority Air Quality Improvement : Availability of LNG enables CLP s flexibility to increase the use of natural gas up to half of its electricity demand, which will result in further reduction of emissions by 17% to 40% Annual Reduction in Emissions Achievable SO 2 NO x CO 2 20,000 tonnes (43%) 10,000 tonnes (35%) 3 million tonnes (17%) 14

15 Legend Black Point Power Station Hong Kong SAR Boundary Isometric Circles Potential Site Sites 1 - Black Point 2 - Lung Kwu Tan 3 - Castle Peak North 4 - West Brothers 5 - Yam Tsai 6 - Brothers Point 7 - Sham Wat Wan 8- North Tai O 9- Yi O 10- Peaked Hill Island 11- Fan Lau West 12- Fan Lau East 13- North Sokos 14- South Sokos 15- Shek Kwu Chau 16- Sunshine Island 17- Man Kok Peninsula 18- Tsing Yi 19- Beaufort Island 20- Po Toi Island 21- Fury Rocks 22- Waglan Island 23- Stanley Peninsula 24- Cape Collinson 25- Tung Lung Chau 26- Area Wang Chau 28- Town Island 29 - Tap Mun New Territories Hong Kong SAR Boundary Kowloon Hong Kong Island Kilometres Significant Progress since 2003 to Bring LNG to Hong Kong Intensive activities over the last 3½ years : Engineering & design Stakeholders Engagement Gas supply EIA study Overseas experience LNG ship Site selection 10 km 20 km 30 km 40 km 50 km ² Comprehensive project to bring LNG to Hong Kong as early as possible 15

16 South Soko and Black Point Sites Studied Black Point South Soko Island An overall evaluation of the EIA study together with other considerations show that the South Soko option provides the most benefits to Hong Kong 16

17 The Proposed Enhancement Plan 17

18 Further Emissions Reductions Initiatives Ongoing improvement plans/projects include: Ultra Low Sulphur Coal Emissions Control Retrofit Liquefied Natural Gas KT KT 150 Reduced by 44% SO Projects Completion NO x Completion of these plans/projects critical to meet 2010 emissions reduction targets Other initiatives: Feasibility studies of onshore and offshore wind projects Other options to be explored 75 0 KT 10 5 Reduced by 77% Projects Completion Reduced by 70% RSP Projects Completion 18

19 Emissions Comparable to Developed Economies kg/mwh SO 2 Emission CLP s 2005 emissions per unit sold in Hong Kong compare favourably with major utilities in developed countries 1 0 Southern Company (USA) Delta Electricity (Australia) HEC (HK) Pacific Corp (USA) Scottish Power (UK) CLP (HK) KEPCO (Korea) EDF SA (France) CLP (projects completion) TEPCO (Japan) Further significant reductions upon completion of major projects Source: Company websites; 2003, 2004 and 2005 data kg/mwh 3 NO x Emission kg/mwh 0.3 Particulates Emission Delta Pacific Corp Electricity (USA) (Australia) HEC (HK) Southern Company (USA) Scottish Power (UK) CLP (HK) KEPCO (Korea) EDF SA (France) CLP (projects completion) TEPCO (Japan) 0 Eskom (South Africa) Progress Energy (USA) Scottish Power (UK) HEC (HK) Delta Electricity (Australia) Pacific Corp (USA) CLP (HK) CLP (projects completion) KEPCO (Korea) 19

20 Renewable Energy (RE) Development To date, RE accounts for about 1.8% of CLP Group s generating capacity: HK offshore feasibility Operation Guangdong, Huaiji 82MW Hydro Shandong, Changdao 27MW Wind Australia, Bluff Point* 65MW Wind Australia, Cathedral Rocks* 66MW Wind Photo by Elsam Construction Shandong, Weihai 19.5MW Wind (2006/7) Jilin, Shuangliao* 49MW Wind (2006/7) Guangdong, Nanao 45MW Wind (2007) Shandong, Rongcheng* 49MW Wind (2007) HK Wind Turbine Pilot Demonstration (2008) * Thru Roaring 40 s CLP Group has set a target to have 5% of total generating capacity from renewable energy sources by

21 The Way Forward CLP relies on a fair and balanced regulatory framework to maintain its excellent performance provide customers with reliable, efficient and environmentally friendly supply at affordable prices CLP has demonstrated unwavering commitment to manage the environmental impact of our operations, and we have taken other initiatives to further improve our performance facilitating the sustainable development of the community 21