Seminar on“Hong Kong Electricity Market:

Post-2008”

Reliability, Security, Best Price : A Consumer’s View

Presentation by KCRC

12 April 2005

Content

KCRC Electricity Consumption Profile

KCRC Traction Supply Networks

Potential Energy Cost Saving Measures

Energy Demand for Future Extensions

View on Post 2008 Electricity Market

Q & A

KCRC NetworkTotal length > 150 km

Annual electricity consumption HK$ 450 million in 2004

Daily Patronage

Average daily patronage 1.5 million

KCRC Operating ExpensesElectricity and

fuel16%

Staff cost

Electricity and fuel

Repair and maintenance

Material cost

Store and spares consumed

Property ownership andmanagement expensesOthers

Cost of services acquired

Government rent and rates

Breakdown of Energy Cost

Depots andother KCRC

BuildingFacilities

5%

Traction Energy65%

StationOperations

30%

KCRC Traction Supply Networks

System Voltage Infeed Points

East Rail AC 25kV Ho Man Tin, Tai Wai & Fanling CLP 132kV/25kV substation

West Rail AC 25kV Kwai Fong & Tin Shui Wai CLP 132kV/25kV substation

MOS Rail AC 25kV Tai Wai & Wu Kai Sha CLP 132kV/25kV substation

Light Rail DC 750V Tuen Mun, Yuen Long, Tin Shui Wai CLP 132kV/11kV substation

FANTPK

YR

H1

YB

H2

BR

H3

TAW’A’

BR

YBBR

H2H3

YR

H1

YB

H2

RY

H1

HMT

LOW

ETS

EAST RAIL

WKN

CLPP FLK 132kV S/S

CIO

H1

WKS

MA ON SHAN RAIL

CLPP MOB 132kV S/S

CLPP TWK 132kV S/SCLPP TST 132kV S/S (2003)

TAW’B’

KWT / ATJ

AbbreviationsATJ – Au Tau JunctionCIO – City OneETS – East Tsim Sha TsuiFAN - FanlingHMT – Ho Man TinKWT – Kwu TungWKS – Wu Kai ShaLMC – Lok Ma ChauLOW – Lo WuTPK – Tai Po KauTAW’A’ – Tai Wai ‘A’TAW’B’ – Tai Wai ‘B’WKN – West Kowloon

LMC

East Rail Supply Networks

West Rail Supply Networks

TUMTIS

BRRY

KWF HPWKN

ETS/HMT

CLPP KFW 132kV S/SYBBR

CLPP TIW 132kV S/S

H3H2H1H3H2H1

NAC

KWT / LMC

ATJ

WEST RAIL

AbbreviationsATJ – Au Tau JunctionETS – East Tsim Sha TsuiKWF – Kwai FongKWT – Kwu TungLMC – Lok Ma ChauNAC – Nam CheongHP – Ho PuiTIS – Tin Shui WaiTUM – Tuen MunWKN – West Kowloon

CLPP 132kV S/S

CLP Tariff

• Traction energy -- Large Power Tariff Scheme

• Station energy -- Bulk Power Tariff Scheme

• Keep on negotiating for a better rate

Trend of Traction EnergyEast Rail Traction Energy

2.40

2.45

2.50

2.55

2.60

1999 2000 2001 2002 2003 2004

Year

kWh

/ car

-km

Energy ManagementIntroduction of Regenerative Braking

Phase III LRVSP-1900 / SP-1950 New EMU

Energy ManagementTraction Coasting Control

Hard Driving Profile Coasting Profile

Spee

d

DistanceStation

AStation

BSp

eed

DistanceStation

AStation

B

High Potential of Traction Energy SavingHigh Potential of Traction Energy Saving

motoringmotoring braking coasting braking

Energy ManagementReplacement of Motor Alternator with

Power Electronic Converter

Traditional Motor-Alternator Set

State-of-the-art Power Electronic Converter

On-going energy saving approx. HK$ 6 million annuallyOn-going energy saving approx. HK$ 6 million annually

KCRC Network Extensionby 30% in future

Lok Ma ChauSpur Line

KowloonSouthern Link

Northern Link

ShatinCentral Link

RegionalExpress Line

Energy Demand Projection

500,000

600,000

700,000

800,000

2003 2005 2007 2009 2011 2013 2015 2017

Ener

gy (M

Whr

)

MOS

LMCKSL

NOL/SCL/REL

Potential connectivity for better security

• Linking with HEC due to SCL• Better assurance on the supply security

due to two sources of supply

Opening of electricity market will have impacts on

• Price structure• Security • Reliability• Choice of optimal supplier

Opinion

Being a mass transit service provider and probably one of the largest electricity consumer in HK, KCRC is closely observing the development of the electricity market reform with an open-minded.

Bottom Lines

To obtain electricity power withGood security

High reliability

Best price

for enabling KCRC to provide good service to passenger

End of Presentation