Like many other countries or regions today, Hong Kong faces significant energy challenges. To promote and protect the local public interest, CLP believes what is needed is a clear policy built on a meticulous analysis and careful balance of supply reliability, environment- friendliness and reasonable tariffs. Each of these three areas in turn comprises a number of key points that need to be acknowledged.
- Global fossil fuel prices have been very volatile over the past 10 years, posing significant challenges in managing fuel costs.
- Costs are kept lower with the use of different fuels and different electricity-generating technologies.
- Changing a set fuel mix nevertheless has some cost implications, as the unit cost for generating electricity with cleaner fuels is generally higher (than with conventional fuels).
- Choosing an appropriate fuel mix for Hong Kong in an environmentally responsible manner is important.
- In the process, more complex challenges also need to be met in the importation of additional fuel from the Mainland, where coal is a marginal fuel.
- Designated nuclear or renewable energy generation and the related infrastructure need to be available, along with sufficient lead time for delivery, if any undesirable environmental impact is to be avoided.
- Hong Kong's way of life depends a great deal on a reliable electricity supply.
- Many developed economies choose to set a minimum proportion of local generating capacity in order to maintain their energy security.
- Strengthening the interconnection between our territories and importing more clean energy from the Mainland could be considered, as long as there is no impact on supply reliability.