Glossary
Air emissions | The emission of air pollutants such as sulphur dioxide (SO2), nitrogen oxides (NOx) and particulate matter (PMs). |
Availability | The fraction of a given operating period in which a generating unit is available without outages and capacity reductions. This is also known as the Equivalent Availability Factor. |
Baseload | An operating regime of power generation at a reasonably constant rate to serve continuous system load, and not designed to respond to peak demands or emergencies. |
Capacity purchase | Additional third-party owned power generation capacity contracted by CLP under long-term agreements to meet customer demand. Some of these agreements may confer CLP rights to use the generation assets and exercise dispatch control as if they belonged to the Group. |
Capital investments | Includes additions to fixed assets, right-of-use assets and intangible assets, investments in and advances to joint ventures and associates, and acquisition of business. |
Carbon credit | A carbon credit is a tradeable instrument which represents either: (a) a permit which gives the holder the right to emit one tonne of carbon dioxide or equivalent greenhouse gas (tCO2e) into the atmosphere; or (b) a certificate from a project that represents the removal or avoidance of one tCO2e from the atmosphere. |
Carbon neutral | When the greenhouse gas emissions associated with an activity or entity are balanced by carbon removal elsewhere, such as carbon credits, carbon sinks or storage, and renewable energy certificates. |
Climate Action Finance Framework (CAFF) | Launched in 2017, CAFF supports the transition to a low-carbon economy by attracting socially responsible, sustainable financings, and to support CLP’s investments that reduce the carbon content of energy generated and increase the efficiency of energy usage. The CAFF formalises and governs project evaluation, management of proceeds and reporting for Climate Action Finance Transactions, including bonds, loans and other forms of finance. |
Climate Vision 2050 | CLP’s Climate Vision 2050 sets out the blueprint of the Group’s transition to net-zero greenhouse gas emissions leading up to mid-century. Launched in 2007 with a focus on the ambition to mitigate CLP’s climate impact, Climate Vision 2050 has been instrumental in informing CLP’s business strategy and guiding its investment decision-making. |
Combined-cycle gas turbine (CCGT) | A technology used in gas-fired generation to enable significantly higher efficiency by utilising residual heat from gas turbine exhaust to run steam turbine and generating additional electricity. |
Decarbonisation | Decarbonisation of the power sector primarily refers to the reduction in the greenhouse gas emissions from electricity generation, and providing lower-carbon energy services and solutions to customers. At CLP it is measured by the reduction in carbon intensity, which is expressed in kilograms of carbon dioxide per kilowatt hour of electricity sent-out. |
Decentralised generation / distributed generation | Refers to electrical generation and storage performed by a variety of technologies of a smaller scale located close to the load they serve. In contrast, centralised generation is the large-scale generation of electricity serving multi-loads connected to the transmission network. |
Demand response | Demand response programmes encourage participating customers to commit to short-term reductions in electricity demand, helping energy suppliers to keep the grid running optimally during high load periods. |
Digitalisation | The application of new information technologies including artificial intelligence and data analytics to help electric utilities develop new customer-centric services and improve operations. |
Distributed energy | Distributed energy includes power generated from sources such as solar panels and wind turbines located close to the users, as well as controllable loads or storage such as electric vehicles and batteries. |
Electricity sent-out | Gross electricity generated by a power plant less self-generated auxiliary power consumption, measured at the connecting point between generating unit and transmission line. |
Energy-as-a-service | Evolution in the business strategy of energy companies to provide a more diverse range of value-adding energy services and solutions such as consultancy, energy management and distributed energy resources to customers, in addition to basic utility services. |
Energy purchase | Electricity purchased by CLP to meet customer demand under long-term agreements from power plants not owned by CLP, and without existing capacity purchase agreements with the Group. |
Energy security | The uninterrupted availability of energy sources. |
Energy transition | Transformation of the global energy sector from fossil-fuel based energy systems to low- or zero-carbon sources. |
Energy transition enablers | Non-generation products or services that facilitate the energy transition, including energy storage, transmission and distribution, electric vehicle charging points and smart meters, amongst others. |
Equity basis | An approach set out by the GHG Protocol Corporate Standard for an organisation to consolidate GHG emissions for the purpose of accounting and reporting GHG emissions. On this basis, the organisation accounts for GHG emissions from operations according to its equity share in the operations. |
Feed-in Tariff (FiT) | Payable by Hong Kong power companies under the SoC agreement to purchase electricity from approved renewable energy projects. Find out more at https://www.clp.com.hk/en/business/low-carbon-solutions/renewable-energy/feed-in-tariff-business |
Flue gas desulphurisation (FGD) facility | Equipment used to remove sulphur oxides from the combustion gases of a boiler plant before discharge to the atmosphere. |
Generation capacity | The maximum amount of power that a generator is rated to produce. Also known as installed capacity or nameplate capacity. |
Greenhouse gas (GHG) | The emission of gases that contribute to the greenhouse effect causing a changing climate. CLP’s GHG emissions inventory covers the six GHGs specified in the Kyoto Protocol. Nitrogen trifluoride (NF3), the seventh mandatory gas added under the second Kyoto Protocol was deemed immaterial to CLP’s operations after an evaluation. The GHG Protocol Corporate Standard classifies an organisation’s GHG emissions into three ‘Scopes’. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 are indirect emissions (not included in Scope 2) that occur in the value chain of the organisation. |
Megatrends | Large, transformative global forces that define the future by having a far-reaching impact on business, economies, industries, societies and individuals. A megatrend is distinguished from other trends in that it cannot be stopped or significantly altered, even by powerful actors such as governments. Megatrend analysis is an important tool for companies aiming to drive sustainable growth as competition increases and new disruptive ideas and concepts affect entire industries. |
Microgrids | Localised networks with generation, energy storage and load entities, that can operate in tandem with an existing grid or independently. They can potentially be deployed to meet the energy needs of remote areas cost-effectively, foregoing the expenses of transmission grids. |
National Electricity Market (NEM) | Australia’s NEM is a wholesale spot market connecting six regional market jurisdictions – Queensland, New South Wales, the Australian Capital Territory, Victoria, South Australia, and Tasmania. |
Net-zero greenhouse gas emissions | When greenhouse gas emissions are reduced, and the residual emissions is balanced by the removal of an equivalent amount of greenhouse gases from the atmosphere. |
Non-carbon energy/non-carbon emitting energy | Energy from power sources that add no extra carbon to the atmosphere, such as wind, solar, hydro and nuclear energy. It does not include waste-from-energy and other forms of biomass. |
Operational control basis | An approach set out by the GHG Protocol Corporate Standard for an organisation to consolidate GHG emissions for the purpose of accounting and reporting GHG emissions. On this basis, the organisation accounts for 100 percent of the GHG emissions from operations over which it has operational control, but does not account for GHG emissions from operations in which it owns an interest but has no control. |
Offtake | A long-term agreement to purchase electricity from another generator. See capacity purchase. |
Particulate matter (PM) | Microscopic solids or liquid droplets in the air. |
Peaking plant | A power generating station that is normally used to produce extra electricity during peak load times. |
Phase out coal-fired generation capacity | In CLP’s context, phasing out coal-fired generation capacity refers to: (a) the retirement and closure of a coal-fired power asset; (b) the move away from a build-operate-transfer coal-fired project before the end of the contract term or according to the terms of the project; or (c) the divestment from a coal-fired asset. |
Photovoltaic panels | Photovoltaic (PV) panels convert the sun’s energy into DC electricity. |
Power Purchase Agreement (PPA) | A long-term electricity supply agreement specifying deliverables such as the capacity allocation, the quantity of electricity to be supplied and financial terms. |
Pumped storage | A method used for large-scale storage of power. During non-peak times, electricity is used to pump water to a reservoir. During peak times, the reservoir releases water for hydroelectric generation. |
Renewable energy | Energy that is generated from renewable resources, which are naturally replenished on a human timescale, including sunlight, geothermal heat, wind, tides, water, waste-to-energy and various forms of biomass. |
Renewable Energy Certificates (RECs) | In Hong Kong, RECs represent all the environmental attributes associated with electricity produced by local renewable sources in Hong Kong including solar, wind and waste-to-energy power projects, purchased or generated by CLP Power Hong Kong. |
Scheme of Control Agreement (SoC) | The SoC with the Hong Kong Government provides a regulatory framework for the city’s electricity industry, enabling CLP Power Hong Kong to operate its facilities and plan new investments to meet the electricity demand of customers, as well as environmental objectives. |
Science-based target | A target for greenhouse gas reductions that is in line with the goals of the Paris Agreement to limit global temperature increase to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. |
Start-up accelerator | A programme that offers support, including financing and mentorship, to facilitate the development of start-up companies. |
Sustainable Development Goals (SDGs) | The 17 SDGs, adopted by all United Nations Member States in 2015, are the blueprint to achieve a better and more sustainable future for all. Find out more on https://sustainabledevelopment.un.org. |
Utilisation | Gross generation by a power plant unit in a given period as a fraction of the gross maximum generation. Also known as Gross Capacity Factor. |
Waste-to-energy | A form of renewable energy generation using waste such as landfill gas. |