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The View | As Hong Kong’s power bills surge, let’s get creative on cheaper, cleaner electricity
- We should consider allocating carbon-free electricity to commercial users who can monetise this, then charging a premium so residential users pay less
- The point is to generate new ideas and multiple benefits as Hong Kong moves towards a carbon-neutral 2050
Reading Time:3 minutes
Why you can trust SCMP
Energy prices are rising and could remain high for some time. Hong Kong must start to explore options to produce the largest overall benefit while moving the city towards carbon neutrality at the same time.
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Let’s start with the facts. Electricity powers most of the city’s activities, and the bulk of Hong Kong’s electricity is provided by two power companies – CLP Power, which serves Kowloon and the New Territories, and HK Electric, which serves Hong Kong Island and Lamma Island.
Their electricity businesses are regulated by the government under contracts, known as the scheme of control agreements. These agreements include provisions for the power companies to switch away from coal to use lower-carbon natural gas to generate electricity.
These contracts have served Hong Kong well because they have enabled the city to build grid capacity and have an electricity supply that is among the most reliable in the world. Reliability is vital for an extremely dense city like ours.
Furthermore, with severe weather predicted under the influence of climate change, system resilience is essential, and Hong Kong’s power generation and transmission systems are robust.
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The two companies also provide a high level of service at lower prices when compared to many other developed cities, and this is a competitive advantage for Hong Kong.
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