Energy security and reliability

Energy security and reliability have been impacted by an uncertain geopolitical environment and supply chain disruptions over recent years. Higher fuel prices have resulted in assets running at reduced capacity, which has increased costs for CLP and its customers alike. The Group must balance two vital and sometimes competing objectives: providing customers with reliable and affordable energy while continuing to make rapid progress with its decarbonisation objectives.

Providing customers with reliable and reasonably-priced energy

While customers’ expectations around technology and sustainability continue to shift, their need for efficient, reliable and reasonably-priced energy remains constant. CLP is striving to mitigate the impacts of the current global energy crisis on consumer prices in the short term and maintain reliability while navigating the accelerating energy transition over the longer term.


CLP Power has worked closely with the Hong Kong SAR Government to promote the development of renewable energy under the Scheme of Control (SoC) Agreement to which a Feed-in Tariff (FiT) Scheme was added in 2018. The scheme is applicable to electricity produced by solar and wind power systems with a generation capacity of up to 1MW. Under the scheme, CLP Power will purchase electricity produced by an approved renewable energy system once it is successfully connected to the Company's power grid. A smart meter is installed to record the amount of electricity generated by the renewable energy system. CLP Power then offers a FiT rate ranging from HK$2.5 to HK$4 per unit of electricity. By the end of 2023, 376MW of renewable energy was approved under the Scheme, amounting to the annual electricity usage of 89,700 residential customers. This FiT Scheme, offering attractive financial incentives, is further promoting the adoption of renewable energy by customers.

To ensure the reliability of power supply, especially during extreme weather conditions, CLP Power continuously evaluates and improves its emergency preparedness protocols. It has implemented coordination systems and a typhoon response protocol with regular drills on handling incidents during extreme weather events. One initiative has been to bolster the transmission tower structures and foundations for 400kV overhead lines to withstand super typhoons with wind gusts of up to 300 km/h. In addition, CLP Power has implemented an Emergency Restoration System that allows for the quick construction of temporary masts

in the event of tower damage, reducing the amount of time it takes to restore power after tower damage to just two weeks. Furthermore, CLP Power has upgraded mitigation measures at flood-prone transmission substations and distribution substations to minimise the impact of flooding.

This has resulted in improved supply failure detection and a reduction in repair time. CLP Power also ensures effective communication with customers by disseminating information through various channels, close communication with relevant stakeholders and providing an online form for customers to report power outages conveniently.

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