Electricity sector in Hong Kong ranges from generation, transmission, distribution and sales of electricity covering Hong Kong. The combustion of coal, natural gas and oil are the main sources of electricity in Hong Kong. The electricity sector contributes 60.4% of Hong Kong's total greenhouse gas emissions.
There are two main providers of electricity in Hong Kong.
Companies
Power generation in Hong Kong is managed by two major companies under a Scheme of Control arrangement with the Hong Kong Government. These companies effectively operate in a regulated market.
Hongkong Electric Company
The Hongkong Electric Company (HEC; ) HEC's supply area includes Hong Kong Island and Lamma Island.
HEC owns and operates: Lamma Power Station Lamma Winds Power Station
CLP Power Hong Kong Limited
The CLP Power Hong Kong Limited (CLP; ) under the CLP Group was founded on 25 January 1901 as China Light & Power Company Syndicate in British Hong Kong. CLP's supply area includes Kowloon, New Territories and outlying islands except Lamma Island.
CLP owns the following power stations in Hong Kong territory under a joint-venture company Castle Peak Power Company Limited (CAPCO) with China Southern Power Grid International (HK) Co., Limited. Black Point Power Station Castle Peak Power Station Penny's Bay Power Station
CLP also owns 25% shares of the Guangdong Daya Bay Nuclear Power Station and wholly owns Guangzhou Pumped Storage Power Station in Conghua.
Generation
Fuel
In 2012, Hong Kong relied on coal (53%), nuclear (23%), natural gas (22%) and a very small amount (2%) of renewable energy for its electricity generation. As coal-firing generation units start to retire in 2017, the Government plans to raise the share of natural gas to 50% in 2020 while maintaining the share of nuclear power at present levels.
The Government announced that in the year 2020, around half of electricity generation had been met by natural gas, and generation from coal had been successfully reduced to about a quarter, with the remaining generation from imported nuclear energy from the mainland and renewables (utility and off-grid).
Power stations in Hong Kong
Hong Kong has currently 5 power stations, supplying 77% of its electricity needs in 2012.
Black Point Power Station
Commissioned in 1996, the Black Point Power Station is a gas-fired power station located in Yuen Long, Tuen Mun in the New Territories. It is the largest gas-fired power station in Hong Kong with an installed generation capacity of 2,500MW.
Castle Peak Power Station
Commissioned in 1982, the Castle Peak Power Station is a coal-fired power station located Tap Shek Kok, Tuen Mun in the New Territories. It is the largest power station in Hong Kong with an installed generation capacity of 4,108MW.
Lamma Power Station
Commissioned in 1982, the Lamma Power Station is a coal-fired power station located on Po Lo Tsui, Lamma Island, part of the Islands District. It is the second largest power station in Hong Kong at an installed generation capacity of 3,237 MW.
Lamma Winds Power Station
Commissioned in 2006, the Lamma Winds Power Station is a wind turbine located on Lamma Island in Islands District. It is the only industrial-sized wind turbine in Hong Kong with an installed generation capacity of 800 kW.
Penny's Bay Power Station
Commissioned in 1992, the Penny's Bay Power Station is a diesel-fired gas turbine power station located at Penny's Bay on Lantau Island. It is a peaking power station with an installed generation capacity of 300MW.
Interconnection with China
CLP's electrical grid is interconnected with the China Southern Power Grid of Mainland China. Hong Kong imports 23% of its total electricity needs from generating facilities with CLP's equity situated in the mainland. These include a contractual agreement of 70% electricity output from the 2 x 944 MW Daya Bay Nuclear Power Plant and some peaking power/pumping load from Guangzhou Pumped Storage Power Station in Conghua. Recently, CLP said that it would buy 10% more nuclear power from Daya Bay Plant, increasing the share to 80% of the plant's output capacity. But with the increasing electricity demand in southern China, it will be difficult for CLP to acquire 100% of the plant's output capacity.