HONG KONG’S ROADMAP OF REPLACING COAL WITH WIND ENERGY BY 2020: Greenpeace’s Response to “Future Development of the Electricity Market in Hong Kong: Stage II Consultation”
Highlights of the Position Paper 1.
The “Future Development of the Electricity Market in Hong Kong: Stage II Consultation” (Stage II Consultation) opens the time window to phase out coal and develop wind energy for Hong Kong (HK);
2.
By 2020, wind energy in Guangdong (GD) can reach an installed capacity of 20 GW which can generate as much as 35,000 GWh of clean electricity (a volume roughly equals HK’s TOTAL SUPPLY in 2005). Just about half of the 35,000 GWh of wind energy, if imported to HK, will be adequate to replace ALL coal-fired electricity in HK by 2020;
3.
Greenpeace presents in this position paper the Hong Kong Wind Energy Roadmap which outlines the strategies necessary for achieving the 2020 wind energy target in HK: Phase 1 (2006-2008): Formulation of vision; strengthening institutions
a)
At HK local level:
• • •
Set HK’s wind energy vision and targets; Ensure the post-2008 Scheme of Control Agreements (SCAs) have forceful terms to encourage renewable energy (RE) development and de-motivate coal burning; Set up HK Sustainable Energy Authority (a unit at local level to coordinate the Renewable Energy issues in HK).
b)
At GD-HK regional level:
•
Strengthening local and GD-HK regional institutions to facilitate the development of wind energy. New institutions to be established included:
• •
GD-HK Wind Energy Coordination Office; GD-HK Wind Energy Advisory Group.
Phase 2 (2009-2012): Power Sector Reform
• •
Establish Hong Kong Energy Bureau; Formulate Hong Kong Electricity Ordinance to replace SCAs after 2018.
Phase 3 ( 2013-2018): Market Liberalisation and Full Interconnection
• •
Ensure full interconnection with GD power grid; Complete market liberalization of HK’s power sector.
By 2020: 20 GW wind energy in HK 4.
In response to the Stage II Consultation Paper,
a)
b) c)
Greenpeace supports the following proposed regulatory measures in the Stage II Consultation Paper:
• •
Rewarding RE infrastructure with a higher permitted rate of return; Reducing the permitted rate of return of any power company which fail to meet the statutory emission caps as financial penalty;
Greenpeace, however, is of the view that the Stage II Consultation document has failed to seize the opportunities to steer HK’s power sector towards a more sustainable one. Greenpeace therefore calls for:
• • •
A holistic approach to develop wind energy in HK with a regional perspective and long-term planning as suggested in Greenpeace’s HK Wind Energy Roadmap Not allowing any investment of the anti-pollution measures including flue-gas-desulphurisation facilities be entitled to any permitted rate of return, so as to uphold the “polluter-pay-principle”; and An explicit timeframe to phase out coal-fired electricity in HK.