ENERGY & OFFSHORE | Staff Reporter, Hong Kong

HK Electric eyes boosting gas-fired generation capacity to 55% of output

This will be realised upon unit L11's commissioning in 2022.

HK Electric is building two new gas-fired generating units, L10 and L11. Construction of L10 is in good progress for commissioning in 2020 while piling work for L11 has commenced at end 2016, according to a company statement.

When L11 is commissioned in 2022, HK Electric’s gas-firing generation capacity will rise to about 55% of total output that will help further reduce emissions.

"We are partnering with CLP Power to explore the feasibility of siting a floating liquefied natural gas terminal in Hong Kong waters to enhance the security and bargaining power of natural gas supply. In the longer term, more efforts would be required to support the Government’s Climate Action Plan 2030+. We envisage an investment pipeline which includes the further replacement of coal-fired generating units by gas-fired units and other supporting infrastructure," it said.

Progress has been made in its ongoing deliberations with the government over the future regulatory framework. Both sides acknowledge the need for an early agreement with which HK Electric will be able to make timely investments to achieve the Government’s energy and environmental objectives.

"We have reduced tariff for 2017 by an average of 17.2% after the 2016 tariff reduction. These cuts follow a two-year tariff freeze and have enabled us to go over and above our 2013 pledge to keep tariffs unchanged for five years till end 2018," it added.

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