2018 development plan - clp · 2018 development plan a greener and smarterenergy system 4 offshore...

Information Classification: Confidential/ProprietaryInformation Classification: Confidential/Proprietary

2018 Development Plan

and New Tariff Package

Presentation to Legislative Council Economic Development Panel

4 July 2018

Information Classification: Confidential/Proprietary

0.0

0.5

1.0

1.5

2.0

2.5

3.0

CLP Singapore London New York Sydney

RemarksBased on avg. monthly domestic consumption of 275kWhTariff and exchange rate* in Jun 2018*Average midpoint exchange rate of 1-15 Jun 2018

HK$/kWh

Meeting Energy Policy Objectives

Competitive Tariff

Environmental

Improvement

2

NOx

RSP

SO2

Change

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

+ 80% in Electricity Demand

- 80% in Emissions

High Reliability

Remarks2015-2017 avg. for CLP and NY, 2014-2016 avg. for other citiesThere is no overhead line in Singapore

0.5 1.6

8.5

19 21

0

10

20

30

40

50

0.5 CLP

Unplanned customer minutes lost per year

Sydney(CBD)

New York LondonSingapore*

More Reliable Less Reliable

Carbon intensity reduced by close

to 50% during the same period

Carbon intensity reduced by close

to 50% during the same period


Hong Kong : A Greener & Smarter City

3

Low Carbon Economy

Smart City

Development

Maintaining

World Class

Supply

Reliability

CLP in support of Hong Kong’s Climate Action Plan 2030+

Meeting Electricity Demand


2018 Development PlanA Greener and Smarter Energy System

4

Offshore LNG Terminal

allows secure and more

competitive gas supply

Smart Meters to give

customers more

control over their

energy use and bills

New gas fired

generation unit D2 to

phase down coal

Retiring Castle Peak ‘A’

coal-fired power station

More renewable

energy

Enhanced Clean Energy

Transmission System to increase

resilience and offer energy options

Information Classification: Confidential/Proprietary5

Phasing Down Coal

New CCGT Generating Unit D2 HK Offshore LNG Terminal Clean Energy

Transmission System

Enhancement


Supporting Infrastructure Development and

Population Growth

New Towns• Hung Shui Kiu

• Kwu Tung North

• Fanling North

• Queen’s Hill

• Tung Chung

Key Developments• Ho To Development

• Kai Tak Development

• Kwun Tong Redevelopment and

Energising Kowloon East

• Airport DevelopmentGovernment Infrastructure• Shek Wu Hui Sewage Treatment

• Shatin Sewage Treatment

• HZMB/BCF/TM-CLK Link

• Integrated Waste Management Facility

• Desalination Plant


ImprovedProducts andServices to Customers

Improved Energy Efficiency

Improved Utility OperationsSmart Meters supporting

smart city development

Safety and Reliability

Supporting Hong Kong as a Smart City

save


Maintaining Reliability (38%)

Lowering Carbon & Emissions (30%)

Smart City & Digitalization (8%)

Meeting Demand (24%)

Capital InvestmentTotal HK$ 52.9 billion for Oct 2018 – Dec 2023 (5 years and 3 months)

8

Smart City &

Digitalisation (8%)


Rising Fuel Costs

9

0%

20%

40%

60%

2018 2020 2023

Coal Gas

Gas in Fuel Mix Doubles Gas is a higher-cost fuel

April 2018

More gas = higher fuel costs


Fuel Costs the Challenge to Tariffs

HK₵ / kWh

-20

0

20

40

60

80

100

120

140

1601

99

8

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

Total Tariff

Basic Tariff

Fuel Clause Charge

Basic Tariff only up by 2% over 20 years

Total Tariff rise is mainly driven by rising fuel costs

10

Basic Tariff 1998

89.1 ₵/kWh

Basic Tariff Q4 2018

91.0 ₵/kWh


Tariff Component

(cents / kWh)

Jan – Sep

2018 TariffChange

Oct 2018 –

Dec 2019

Tariff

Average Basic Tariff 94.5 -3.5 91.0

Fuel Cost Adjustment 22.0 +5.8 27.8

Rent & Rates Special Rebate -1.1 0 -1.1*

Average Net Tariff 115.4 +2.3117.7(+2.0%)

Oct 2018 – Dec 2019 Tariff

* At some point in Q4 2018 or in 2019, the Rent and Rates refund available from Government as

a “R&R Special Rebate” is expected to be used up, when the Net Tariff will be increased by

0.9% from 117.7ȼ/kWh to 118.8 ȼ/kWh

11

Over 70% of Residential Customers will have

tariff increase less than $10 per month



YearQ1-3

2018

Q4 2018

& 20192020 2021 2022 2023

Basic Tariff

(HKȼ/kWh)94.5 91.0 93.4 96.5 99.1 101.9

Change - - 3.7% + 2.6% + 3.3% + 2.7% + 2.8%

Average Basic Tariff increase of 1.4% per year

2018 DP Period

12


New Scheme of Control Agreement

Key Initiatives

• Leading to A Greener and Smarter City

Feed-in Tariff

Renewable Energy Certificate

Eco-Building Fund

Community Energy Saving Fund

Enhanced Energy Audits

• Caring for the needy

Information Classification: Confidential/ProprietaryInformation Classification: Confidential/Proprietary


and New Tariff Package

Presentation to Legislative Council Economic Development Panel

4 July 2018

2018 development plan - clp · 2018 development plan a greener and smarterenergy system 4 offshore...

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