HK's CLP Eyes Renewable Energy Projects in Asia
Date: 10-Jul-06
Country: CHINA
Author: Alison Leung
The power firm, which generates about half of its energy by coal with the balance from nuclear power and gas, promised to generate 5 percent of energy from renewable sources by the end of the decade, compared with 1.7 percent now, said Chan Ka Keung, managing director at CLP's renewable sector.
CLP, Asia's fifth most valuable utilities firm, is planning to build an offshore wind farm of 180 megawatts (MW) with partner Wind Prospect off Hong Kong's Ninepin Island, the largest of its kind in the Asia Pacific region.
"Our mission is to be a leading renewable energy player in the entire Asia Pacific," Chan told Reuters in an interview.
Like many investors in the renewable sector, CLP is looking at markets with favourable and clear government policies, such as China, Australia and India.
China aims to get 15 percent of its energy from renewable sources by 2020 and have 30 gigawatts of installed wind power capacity by that time.
CLP has so far invested in a hydro-power plant and five wind power projects in China. Taking into account its two wind farms in Australia, the company's equity share in renewable energy accounts for approximately 205 megawatts of the projects' total output.
"We have approximately 500 mw and above in the entire Asia Pacific in the pipeline," said Chan.
Its newly completed 27 mw wind farm in Changdao, in China's eastern province of Shandong, with turbines of 850 kilowatts. "They are very tall infrastructures, approximately 70-80 meters tall or at least 30 to 40 storeys high," Chan said.
About 1.7 percent of the company's energy is now generated by renewable sources, up from 0.5 percent in 2004. The company had total generating capacity of about 17,000 mw in Hong Kong and overseas markets by the end of 2005.
The company is also actively looking at projects in India due to the country's transparent renewable system.
"The tariff is very clear and the (Indian) government will give a lot of tax incentives to encourage people to make investments in the sector," he said.
With it's base in Hong Kong, CLP Energy is also looking at possible alternative energy sources beyond the thermal power.
"Hydro is out of question since Hong Kong has no major river and we do not have a vast area to build solar panel," Chan said.
"Apparently wind power will be the only option in Hong Kong."
CLP has embarked on a feasibility study and will start collecting wind data next year for its proposed wind farm in the city. Construction is expected to start in 2010/2011, the earliest.
The designated site at about 9 kilometers off the city's scenic spot of Sai Kung would have about 60 turbines of 3 mw each. "You probably will not see the turbines on shore due to air pollution," Chan added.
The proposed offshore wind farm could support power usage by 80,000 households of 4 members each, equivalent to about one percent of Hong Kong's existing power production.
(US$1=HK$7.8)