Open up power grid by 2018, urge Greens

Open up power grid by 2018, urge Greens
Chester Yung 
Saturday, July 01, 2006


Greenpeace Friday called on the government to set a 2018 target date for the opening up of the electricity market.


"While many people are excited about the business cooperation between Guangdong and Hong Kong, such as in CEPA, the government is dragging its feet on the grid interconnection between Hong Kong and Guangdong," 


Greenpeace campaigner Gloria Chang Wan- ki said. "We believe 2018 is an achievable goal," she said, adding the community was looking for a clear timetable instead of "empty talk".


The debate over opening the electricity market has intensified recently as the current scheme of control agreement between the government and the two power companies expires in 2008.


In the Stage II Consultation Paper on Future Development of the Electricity Market in Hong Kong released last December the government proposed adopting greater flexibility in responding to future market development. In a paper submitted to Legco, it suggested that owing to the topographical constraints of Hong Kong, large-scale new supply sources would likely come from the mainland.


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The government's latest assessment shows that though the supply and demand situation in Guangdong will improve over the next few years, the electricity supply would remain tight in the near term, especially in certain regions and during certain times of the year.


"Therefore, it would be prudent at this stage not to predicate the future development of the electricity market in Hong Kong on supply from the mainland," the government paper said.


Speaking at the Legco Economic Services Panel meeting Friday, deputy secretary for Economic Development and Labour Howard Lee Tat-chi said the grid interconnection needed some technical assistance which would take time. He offered no firm timetable.


"The existing power grids are the private properties of the two power companies. The power grids may therefore not be immediately compatible with the operating condition of a third party, and may have to be reinforced or reconfigured," Lee said.


He said to ensure the integrity of the power grids, it would be necessary to develop codes of practice and standards relating to supply, reliability and safety, and liability in case of fault.


Civic Party legislator Albert Lai Kwong-tak urged the administration to set a firm timetable for opening up the power grid for access by third parties before the first five-year interim review following the new agreement in 2008.


However, Permanent Secretary for Economic Development and Labour Eva Cheng Yu-wah insisted that further discussions were needed,


"Do we need to wait for 15 years? I don't know if I will be able to see it [interconnection] in my lifetime," Frontier lawmaker Emily Lau Wai-hing said.


Hong Kong Energy Studies Center director Larry Chow Chuen-ho said a wait of between eight and 10 years would be suitable. "This is a complicated issue and we can't do it in a rush."