As the onset of the pandemic turned many CLP employees to work-from-home (WFH), CLP’s prior adoption of cloud computing, which commenced in 2018, underpinned business continuity. In 2020, a virtual workplace was rolled out to make remote access more convenient and to facilitate collaboration. This provided CLP with the agility to respond quickly during periods of business disruption by enabling seamless access and updates to IT applications for its employees. The enhanced IT capacity has also had the additional benefit of enabling CLP to hold large scale meetings online, such as the Group’s annual general meeting and CLP Power’s annual Staff Communication Session, where nearly 1,500 employees participated.

Following a review of its IT operating model, CLP is continuing to source more technology services through cloud computing options. This is essential as the Company naturally expands into the big data, machine learning and AI domains.

On the operational side of the business, CLP has been expanding deployment of technologies in different activities over the last few years. Unmanned technologies such as drones and robots improve work safety and enhance operational efficiency, especially when they replace humans in challenging and dangerous working conditions – be it underwater equipment used at generation facilities, or for work being conducted on transmission lines 50 metres above ground. It also helps improve power reliability and customer service even though the technology employed may only be visible behind the scene.

For its renewable generation assets, the Company continued to deploy drones for managing its solar assets and for the inspection of wind turbine blades. After a successful trial at the Sihong solar plant in Mainland China, waterless robotics and solar reflectors will be installed in the Huai’an solar farm to improve cleaning procedures and to increase plant efficiency. CLP India has also been trialling the use of low-water robotics for the cleaning of solar modules in Veltoor.

CLP continues to install secondary monitoring and analytics engines across its wind and solar assets in India and China in 2020 and will have full coverage across around 2GW of renewable assets by mid-year 2021. Big data and AI technologies enable remote monitoring and smart network management. The Company has established cloud connections to capture all its renewable data in India and Mainland China, in accordance with data localisation regulations and robust cyber-security solutions to ensure the protection of the operating assets and data.

For the transmission and distribution system, overhead line towers are usually located in remote areas and are prone to damage by nearby vegetation during a typhoon. Using drones, rather than employees, to carry out visual inspections of overhead lines and towers to check their structural integrity and assess the risks posed by any damaged trees nearby is a safer approach. CLP’s engineering team has also been working on the integration of the image data captured by drones using AI technology to enhance vegetation management. The AI algorithms make tree classification easier. By analysing such information together with power asset locations, CLP has established a vegetation management inventory, which allows the Company to identify hazardous trees near power lines, as well as monitor and mitigate the related risks.

The CLP engineering team aims to expand the deployment of these technologies in more aspects of its operations, and has been working with universities to develop new applications for robots and drones. The advanced research and development capability of academics and the practical industrial expertise of CLP engineers are creating synergies to ensure the safety and reliability of CLP’s electricity services.

Beyond its own operations, CLP will focus on the benefits of adopting digital technologies in managing its supply chain, especially data analytics for improved insights into suppliers’ performance and supply chain management. Digitalisation will help deepen CLP’s collaboration with strategic suppliers, enhancing the Group’s access to resources and capabilities in support of business objectives.

CASE STUDY

Using robots to eliminate high risk diving activities

For thermal assets, the cooling water system and boilers need to be inspected regularly. The use of robots prevents technicians from being exposed to high risk environments.

A combustion boiler is a key component of a thermal asset, which produces steam at high pressure to drive the turbo-generator. A combustion boiler is about 70 metres tall, equivalent to a 22-storey building, and its interior is a confined environment where regular human access is difficult. CLP is now using robots for inspection of some of its boilers. These robots are specially designed to adapt to the conditions of different boilers: some are like spiders that climb on vertical boiler tubes, others have wheels that can navigate the varied terrain. These robots can quickly detect any faults such as surface cracks, significantly reducing the time needed for inspections while improving work safety.

Robots are specially designed to adapt to the conditions of different boilers.

Cooling water culverts, the underwater structures that supply sea water to power generation units for cooling, are another key component that requires regular inspection and cleaning. Traditionally this was done through diving, which is a potentially high-risk activity. CLP took the initiative to use Remotely Operated Vehicles (ROVs) to replace divers for the inspection and cleaning of cooling water facilities in power plants in Hong Kong, Mainland China and Australia. The adoption of ROVs has already eliminated about 30 manned diving hours each year across the Group, in addition to shortening inspection time and reducing asset downtime.

ROVs deploy advanced technology including LED strobe lighting, imaging, underwater GPS positioning, altimeter and echosounder. CLP has worked with consultants and the Hong Kong University of Science and Technology (HKUST) to fine-tune the configurations of ROVs for application at power plants by considering water current, visibility, marine growth and complexity of works. Risk assessments were also conducted to ensure the safe use of ROVs.

Plans are now in place to further reduce or eliminate various manned diving for inspection, cleaning, maintenance, repairs and equipment installation of CLP’s marine works projects, floating solar projects, hydro plants and thermal plants by advancing ROV design changes and operational practice in the coming two years. This effectively minimises the deployment of manpower into highly hazardous underwater environments.

The inspection of underwater cooling water culverts was traditionally done by professional divers.

ROVs are used for inspecting the cooling water inlet tower in the Mount Piper thermal plant in Australia.

CASE STUDY

Technology improves customer services behind the scenes

Customer services are increasingly provided digitally. Application of Robotic Process Automation (RPA) helps CLP Power provide better customer experience and increased internal operational efficiency.

Customer service needs to take new forms. A CLP customer services centre was renovated and upgraded to feature multi-function self-service kiosks, deploying the latest digital technology to give customers a convenient and flexible account service and shopping experience.

During the COVID-19 pandemic, as a series of social distancing restrictions were enacted, and many of CLP’s customer service centres were not able to maintain the usual opening hours. A new mobile app was launched in April, providing customers with an end-to-end digital experience, covering services ranging from move-in services and eBill applications, to mobile payments and a Smart Shopping platform. Downloads and usage of the app saw a nearly 50% increase compared with the previous year as growing numbers of customers opted for online services.

Supporting these digital services is a number of automated robotic processes to enhance its operational efficiency. RPA technology utilises computer software robots to automate rule-based, repetitive and high transaction volume business processes with high efficiency, accuracy and consistency. CLP has been applying RPA over the last few years to enhance customer experience and satisfaction, as well as uplift the internal workforce efficiency.

One of the success cases is the streamlined digital payment deferral request process. CLP Power understands the difficulties and hardship customers have been going through under the economic downturn and pandemic, and have therefore established an electronic submission channel to help customers make payment deferral requests. Upon receiving the electronic requests, the RPA will automatically handle the subsequent data processing, customer identity verification, eligibility validation, requests for approval, and notifications to the customers upon completion. These automated processes are handled by RPA without human intervention, providing a more timely and accurate service, while also enhancing employee productivity.

Since the implementation of this automated process, the RPA has processed over 45,000 payment deferral requests and the associated manhour savings have been re-deployed to provide other value-added services to our customers.

Smart Energy Connect was launched in 2019 as a platform to accelerate the adoption of energy management solutions and digital energy innovations for businesses. In 2020, Smart Energy Connect introduced new solutions including Energy Connect Campus and Energy Connect Workspace. The Energy Connect Campus solution is focused on addressing both the energy saving and educational needs of schools where a range of IoT sensors may be deployed on a premise, and the solution and data can be used to support STEM education needs. The Energy Connect Workspace solution helps users save energy in large office environments by automating the usage of electrical equipment (e.g. lighting, cooling, appliances) based on environmental data provided by various sensors.

The Smart Energy Connect building AI and analytics platform was deployed in multiple sites in 2020 to help identify equipment faults, energy saving potentials, and to streamline the work of facility managers. The AI platform has helped CLP identify fault detections on a real-time basis including fan-coils, lighting, and chiller systems.

Smart Energy Connect also successfully deployed a chiller optimisation solution for a customer’s existing buildings, which works by continuous adjustment of chiller settings based on data collected by environmental sensors and equipment conditions. The solution was deployed at a large retail complex in Hong Kong, improving energy efficiency and ensuring shoppers receive precisely the right level of air-conditioning. In addition, this was also deployed at one of CLP’s largest offices in Hong Kong. In a matter of months, energy savings of 25% were generated and 45 hours per month of activity was saved, with a financial payback period of under one year.

Smart Energy Connect also continued to offer the existing CLP Carbon Credits platform, which was utilised in 2020 by two major players in the maritime industry, namely Wah Kwong Maritime Transport Holdings and Pacific Basin Shipping Limited to offset their activities in support of sustainability objectives. Read more here.

Smart Energy Connect provides a comprehensive portfolio of integrated, high-end and low-cost solutions for customers.

CASE STUDY

Pursuing business opportunities in the Greater Bay Area 

The Guangdong-Hong Kong-Macao Greater Bay Area (GBA) comprises the two Special Administrative Regions of Hong Kong and Macao, and nine municipalities in the Guangdong Province. The GBA covers a total area of 56,000 km², and at end-2019 the total population was over 72 million with a GDP close to US$1,680 billion.

Developing the GBA is accorded the status of key strategic development area in China’s development blueprint. In view of China’s commitment to achieve carbon neutrality by 2060, this presents opportunities for energy provision as well as smart energy services. CLP is actively pursuing opportunities from marketisation and smart energy development in Mainland China, with initial focus on district cooling, smart energy services, EV charging and data centres.

In November 2020, CLP invested in the new “CSG Energy Innovation Equity Investment Fund” set up by China Southern Power Grid (CSG). The fund focuses on new smart energy and innovation-related opportunities in the GBA. As the sole Hong Kong investor, CLP will collaborate with innovative energy technology developers and contribute its experience from Hong Kong.

In response to "The Outline Development Plan for the GBA" released by the Central Government in 2019, CLP has proactively formulated a strategy to pursue emerging opportunities in the area. In 2020, CLP China formed a new holding company based in the Qianhai free trade zone in Shenzhen. The new holding company is intended to facilitate financing for investments in smart energy and clean energy opportunities.

In close vicinity of the GBA, through TUS-CLP Smart Energy Technology Co. Ltd. (TUS-CLP), CLP’s joint venture with TUS-Holdings which is affiliated to Tsinghua University, CLP participated in building and operating an incremental distribution network (IDN) at the Fangchenggang Hi-Tech Zone. The project started to supply electricity to the Hi-Tech Zone and will serve as a reference case for CLP’s future expansion into similar opportunities in southern China as reform of the electricity sector continues.

CLP Holdings joins China Southern Power Grid (CSG) in investing into the CSG Energy Innovation Equity Investment Fund, which targets innovative energy developments, new energy infrastructure, and smart energy in the Guangdong-Hong Kong-Macao Greater Bay Area.

Disruptive innovations often come from outside of a sector, sometimes blurring the lines between traditionally separated industries. To be better prepared for these disruptions, or to drive them, CLP understands that it needs to look beyond its own sector. By collaborating with, and disciplined investment in, promising entrepreneurs and start-ups, the Company is able to harness cutting-edge technology, agility and digital capabilities. Co-developing new products and services can then be scaled via CLP’s presence in various geographies. For instance, more than 10 energy management solutions on the Smart Energy Connect platforms were discovered through CLP’s participation in various innovator ‘accelerator’ programmes.

Following past successes, CLP continues to support different accelerator programmes:

• Free Electrons completed another successful year to deliver cutting-edge digital innovations to the global electricity industry, connecting CLP and other leading utilities with the world’s best start-up companies. Amid the pandemic, the 10 participating utilities and 15 start-ups collaborated virtually in the year-long programme in the quest to make energy smarter and more sustainable. Vyntelligence, a London-based start-up company focused on AI and video analytics technologies, was announced the winner of Free Electrons 2020. The UK company is currently running exciting pilot projects with several participating utilities including CLP.

• JUMPSTARTER is the annual accelerator programme organised by Alibaba Entrepreneurs Fund, and is the world’s largest online pitching competition with more than 2,000 applicants globally. CLP was among the judges for JUMPSTARTER 2020 , and start-up companies from the US, UK, Singapore, Mainland China and Hong Kong have been selected for the top-20 list in the year. The Company’s support is continuing in 2021.

• CYZone supports the growth of technology innovators from Mainland China, by scouting for promising smart energy technologies and sustainable energy services. CLP formed a partnership with CYZone in 2020. Out of 120 participating companies, 11 were selected based on innovative technologies and business models covering areas including energy management, e-mobility, smart buildings and storage applications. CLP will continue its collaboration with these start-ups and potentially run smart energy pilot projects with them.

CLP’s Investment & Ventures portfolio serves as a catalyst for growth through the pursuit of investments and partnerships that aim to enhance the Company’s energy businesses, generate opportunities in growth markets, and deliver strategic value. In 2020, CLP exercised a prudent portfolio management approach, especially during a pandemic year, through in-depth analysis and proactive management to fully understand present difficulties and plans of its portfolio companies.

CLP has has invested HK$55 million in 2020, totalling over HK$300 million thus far, in creating a portfolio that consists of: venture capital (VC) funds based in innovation hubs such as Silicon Valley, Tel Aviv and the Greater Bay Area, a joint venture with Other Sources Energy Group, which has a proven investment track record in clean energy technologies in Israel, as well as direct equity investments in various companies.

In 2020, CLP invested in R&B Technology Holding Co. Ltd (R&B ). R&B is a company specialised in energy management solutions powered by artificial intelligence technologies. Its solutions help facility managers, businesses and building owners optimise energy consumption and manage the condition of their properties. The technologies allow CLP customers to identify potentially faulty and underperforming equipment, enabling improved management of workplace energy assets across multiple locations. Machine-learning algorithms help deliver better accuracy and insights as usage increases over time . The investment deepens the collaboration between CLP and R&B on innovative digital solutions for smart, sustainable buildings in Hong Kong, Mainland China and other Asia-Pacific markets.

CLP's active process of "innovation" engagement is led by the Group Executive Committee and Innovation Governance Council (IGC). Both parties guide the strategic areas of focus for the Company as they relate to decarbonisation, digitalisation and electrification of the broader economy. The IGC is chaired by the Group CEO. The Council provides leadership, guidance and approval for activities, initiated across the Company, which aim to transform CLP into a “Utility of the Future”.

Whilst innovation is facilitated by all parts of our business, in support of this, across the Company, 122 employees sit within dedicated innovation functions, spearheaded by the Group Innovation team. They work collaboratively with other functions to leverage broader CLP expertise. CLP’s existing power expertise in the supply of energy is a core asset that is the foundation of many of its new services. In strategic growth areas, CLP takes a parallel approach to innovation. Internally, it selectively grows talent in its core competency areas of energy management, digitisation, and customer experience while in other areas it works with selected external partners, such as hardware technology providers.

The CLP Research Institute (CLPRI) complements the work of the Group Innovation team, and focuses on technologies that are still under research and development and often years away from full commercialisation. CLPRI is tasked with strengthening CLP’s knowledge on emerging trends in technology and the energy market in the medium to long term. The current focus is on 12 technological areas under six core themes covering generation, transmission and distribution, energy storage, energy retail, climate science, and resources and materials.

Every technology presents new opportunities but their relevance and potential for the power sector in each market varies. CLPRI tracks, researches and prioritises topics and trends of significance, and develops insights on potential implications to CLP’s business. Most notably, the CLPRI Technology Classification Framework was developed to help the Company monitor the development of technologies that are still at the research and development stage. The framework assists the Group Innovation team’s focus on finding market-ready technologies.

CLPRI is the Company’s internal expert on researching emerging technologies. Insights and findings are shared across the Company through regular briefings to senior management, monthly newsletters to all staff, monthly expert seminars, and by maintaining a knowledge hub on the intranet. These insights are also shared externally through speaking engagements and relevant communications channels.