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Why China Light & Power (CLP) matters to Climate Change? “3 largest” – CLP is the largest power company (owns the generation, transmission and distribution facilities) in Hong Kong, the largest external investor in mainland China and one of the largest international private sector power companies in the Asia-Pacific region. But, CLP has only committed to less then 500 MW installed capacity of renewable energy investment by 2010. With its huge and expanding fossil fuel capacity, CLP is one of the main contributor of greenhouse gases to the atmosphere which lead to climate crisis. CLP facts: a) CLP (China Light & Power) Company commissioned its first power station in Hong Kong in 1903.

In 1998, CLP Holdings was established and listed on the Hong Kong Stock Exchange,

overseeing its increasingly diverse investments in mainland China and other parts of the Asia-Pacific region. It is one of the largest investor-owned power businesses in Asia.

b) CLP’s power generation facilities in Hong Kong are owned by Castle Peak Power Company (CAPCO), a 40/60 partnership between CLP Power HK and ExxonMobil Energy. CLP Power HK owns and operates a vertically integrated electricity supply business in Hong Kong, in which the total installed generating capacity reached 6,283 MW. The Castle Peak Power Station, commissioned between 1982 and 1990, with a total installed capacity 4,108 MW, is one of the world’s largest coal-fired power station complexes, comprising eight units ranging from 350 MW to 677 MW.

c) Since 1985, CLP has been developing, investing in and operating power projects in mainland China. CLP is now the largest external investor in mainland China’s electricity industry, with total capacity of all projects totalling 9,193 MW (CLP equity interest is 3,175 MW), and generating assets in the Provinces of Guangdong, Beijing, Shandong, Shaanxi and Guizhou. CLP has interests in one nuclear power station in Guangdong, nine thermal power stations, a group of small hydro units and one wind project.

d) Since 1994, CLP has been developing, investing in, building and operating private sector power businesses in the Asia-Pacific regionIt is the leading international private sector power company, with total capacity of all projects totalling 7,903 MW (CLP equity interest is 3,921

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MW), and generating assets in Australia, India, Taiwan and Thailand. Progress on the construction of the BLCP project in Thailand, alone accounting for 1,434 MW (2 x 717 MW), in which. CLP has a 50% stake, remains on schedule and two units will be ready to enter into service in 2006/07.

e) In 2004, CLP’s total earnings were up 12.1% to HK$8,614 million. Earnings from CLP’s Hong Kong electricity business increased by 8.1% to HK$6,788 million, while earnings from activities outside Hong Kong grew by 4.4% to HK$1,671 million.

f)

CLP’s current total installed capacity for all its fossil fuels projects across the Asia-Pacific region including mainland China reached 15,065 MW, with upcoming (under construction) fossil fuels projects’ total installed capacity totalling 7,434 MW.

g) CLP’s huge profit is at the expense of our environment and climate. The current total installed capacity of all CLP’s coal and gas-fired power plants of 15,065MW, releases as much as 544,594 kiloTonnes (kT) CO2. In 2004, CLP’s estimated 60,555 kT of CO2 emissions were more than the annual emissions of northern European countries like Sweden (54,820 kT), Denmark (54,850 kT) and Finland (54,320 kT)1 (IS THIS RIGHT? – THIS MEANS THAT CLP’s EMISSIONS WERE 10 x SWEDEN, FINLAND AND DENMARK!!). Apart from the existing coal-fired and gas-fired power plants, CLP is building new coal-fired power plants in Asia, with planned total installed capacity of 7,434 MW. The extra capacity is expected to generate 35,100 kT of CO2, a 58% increase of the CLP group’s total CO2 emission. h) Based on the European Commission’s calculationz on the “external costz” of power plants2, Greenpeace estimated that, for a single year 2004, CLP coal power generation in Hong Kong led to an external cost of 1.34 billion euro (or 13.5 billion Hong Kong dollar), while CLP Group’s coal power generation led to an external cost of 2.98 billion euro (or 30.1 billion Hong Kong dollar)

i)

Comparatively speaking, the 5% renewable energy target that CLP committed to in December 2004 is very insignificant to its whole business portfolio. The 5% target is a global target for the whole CLP group, in which 5% out of the current total generating capacity of CLP group by 2010 would be renewable energy, i.e. around 500 MW. At the moment, CLP is involved in two wind farms in Changdao and Weihai in Shandong, with total installed capacity of

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Energy Information Administration, Department of Energy, US. http://www.eia.doe.gov/iea/carbon.html

2

Reference source: European Commission Community Research report, “External Costs - Research results on

socio-environmental damages due to electricity and transport” (2003) http://www.nei.org/documents/EC_External_Costs_Study.pdf

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46.5MW, which is only 0.6% of its coal-fired power projects under construction and being planned.

j)

CLP has been steadily expanding its investments beyond Hong Kong and China across the Asia-Pacific region since the mid 90’s in readiness for the expiry of the Scheme of Control Agreement (the contract between CLP and the Hong Kong government for power supply) which currently generates 80% of CLP’s profits. However, the commitment of CLP to renewable energy projects is exceptionally small while its fossil fuels projects are expected to further expand.

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d) Since 1994, CLP has been developing, investing in, building and operating private sector power businesses in the Asia-Pacific regionIt is...

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