The journey to sustainability requires strategy and actions to deliver change for good. Reflecting on the past year, we remained focused on growing our business and delivering the energy transition that our markets demand. To help uncover any emerging risks, opportunities or potential impacts, we carried out our annual materiality assessment to track the sustainability topics that are most likely to impact our business, stakeholders and the natural environment. The results assured us that we should remain resolute in continuing our orderly transition to a net-zero future while capturing growth opportunities. Leveraging digital innovation, empowering a future-ready workforce and ensuring thriving communities will also be our priorities.
Transitioning to net zero
Addressing climate change is inherent to the purpose of our company and in 2024, we made tangible progress with our decarbonisation goals across the markets where we operate. In Hong Kong, a new 600MW combined-cycle gas turbine generation unit at Black Point Power Station went into service in April. It serves as a key infrastructure to reduce our greenhouse gas emissions and ensure our power supply reliability together with the existing D1 unit. These enabled the retirement of three coal-fired generation units at Castle Peak Power Station over the year.
In Mainland China, we continued to expand our renewable energy investments with construction starting last year on 590MW of wind and solar projects. In January 2025, construction work on the 231MW Guanxian Wind Farm in Shandong commenced. Work will also begin later in the year on projects designed to provide a further 560MW of renewable energy capacity. We also secured a mandate to construct our first standalone battery energy storage system project in Shangdong province, one of China’s pioneering locations in the development of energy storage capabilities.
Our Australian business, EnergyAustralia, meanwhile secured Federal Government support for two large-scale, four-hour battery storage initiatives with a combined storage capacity of 400MW, finalised power purchase agreements for 230MW of renewable energy and commissioned Australia’s first peaking power station with direct emissions offset — the gas-fired Tallawarra B plant in New South Wales. These strategic initiatives will strengthen EnergyAustralia’s ability to manage volatility in the Australian energy market and support its goal of expanding its portfolio to include up to 3 gigawatts (GW) of renewable energy, committed or operational by 2030. Its progress and pathway to achieving its ambition of net-zero Scope 3 emissions by 2050 were also outlined in its second Climate Transition Action Plan, which was released in December.
In India, our joint venture Apraava Energy had more than 2GW-equivalent of non-carbon energy projects in execution at the end of December, including wind and solar energy, transmission and advanced metering infrastructure projects. It made good progress in developing transmission projects that are critical to connect the country’s solar and wind farms to the major cities with high energy demand. The business also has contracts to supply more than 6.8 million smart meters for households in six states.
Grasping growth opportunities
While decarbonising our portfolio, we also continued to accelerate the electrification of various sectors and expand our business lines. Following the release of the Hong Kong Government’s Action Plan on Green Maritime Fuel Bunkering, our energy infrastructure and solutions subsidiary CLPe Holdings Limited announced plans to form a joint venture with China National Offshore Oil Company Guangdong Water Transport Clean Energy Company Limited to provide LNG fuel bunkering services in the city. The joint venture is expected to come into service in the first half of 2025.
On road transportation, CLP Power also stepped up efforts to provide innovative power supply solutions and technical support to meet rising demand for electric vehicle (EV) charging from both private and commercial users. The Government recently announced the Green Transformation Roadmap of Public Buses and Taxis, setting out the future direction and policy objectives for the electrification of those vehicles. We will continue to work closely with the Government and the industry to facilitate power supply options for EV charging infrastructure.
Meanwhile, to support the sustainable growth of data centres, CLP Power Hong Kong signed a six-year agreement with data centre operator SUNeVision Holdings Ltd. for the purchase of Renewable Energy Certificates. The project will result in the reduction of around 468 tonnes of carbon emissions annually.
Leveraging digital innovation
Digitalisation allows us to enhance operational efficiency and meet our customers’ fast-evolving needs for smarter, more flexible energy services. In Hong Kong, with over 2.68 million smart meters having been connected for our residential and SME customers by the end of 2024, we are on track to complete our smart meter installation programme in 2025, giving customers access to timely information about their electricity use as well as more personalised energy services and experiences.
Another key initiative in digital innovation is the implementation of our new enterprise resource planning system, which will streamline and enhance key processes across the span of our operations. This project represents a significant step forward in CLP’s efforts to maintain our status as a leading utility in the years to come.
Furthermore, we continued to optimise our energy management and improve our network resilience by investing in artificial intelligence and smart grid solutions. This was supported by cyber security measures that are essential for safeguarding our operations. Over the past year, we conducted internal and external validation of our security measures and performed a cyberattack simulation exercise to proactively identify areas that need further strengthening to ensure that our cyber defence remains resilient and effective and that our customers’ data and privacy are not compromised. To promote responsible innovation, mitigate risks and enhance transparency, accountability and trust, we also incorporated a set of principles on the use of artificial intelligence as a part of our efforts to strengthen security governance in 2024.
Empowering a future-ready workforce
To keep up with the changing markets, we remain focused on cultivating an agile organisational culture and upskilling and reskilling our workforce. In 2024, around 900 new hires and internal transfers were secured in Hong Kong and Mainland China to strengthen our capabilities for business growth as the energy transition and digital technologies continued to reshape the electricity market. Moreover, over 3,800 employees were engaged through development programmes, empowering them to become more agile, flexible and efficient and have an increased focus on business outcomes.
During the year, we also completed a strategic review which is designed to ensure CLP is best placed for growth as we pursue initiatives that match with the decarbonisation pathways in our markets. We look forward to implementing the strategy with a strong team and turning our collective vision into reality.
Looking ahead, the world – including the global energy sector – faces profound challenges in an increasingly unpredictable era. Amid this turbulence, we remain committed to focusing on what is right for our communities in the long term. The global transition to a net-zero future offers unparalleled potential for innovation and growth. CLP is resolute in our dedication to seizing these opportunities, ensuring that our investments produce long-term value for stakeholders. As we do so, we will continue to prioritise the development of reliable, sustainable and affordable energy solutions that have a meaningful impact on the communities we serve across the Asia-Pacific region.
