Hong Kong to review power market regulation ahead of 2033 scheme expiry
Hong Kong's environment minister says the city's power market needs to change after 2033, aiming for more stable supply and competitive prices to support new industries such as data centres. The government will conduct a thorough review and is boosting zero-carbon energy.
The Hong Kong government will conduct a careful and comprehensive review of the city's power market as the current regulatory scheme with two electricity companies expires in 2033, the environment minister said on Saturday.
Speaking on a radio programme, Secretary for Environment and Ecology Tse Chin-wan said changes are needed in the local electricity market beyond 2033 to ensure more stable supply and competitive prices, in line with the demands of emerging industries such as data centres and computing centres.
Tse said Hong Kong aims to raise its zero-carbon energy target from the current 25 per cent to 30 per cent by 2030, and he expressed confidence that the ratio could increase to 60 to 70 per cent by 2035.
The minister noted that Hong Kong, backed by the mainland, has no worries about energy and fuel supply. However, prices remain a concern, as energy costs rise during crises and price volatility significantly affects the economy. He pointed out that zero-carbon sources like nuclear and wind power were not affected by the energy crisis, and increasing their share would enhance supply stability. Renewable energy prices have also fallen substantially over the past decade, which could help lower energy costs in the long run.
Tse also revealed that the government plans to reclaim land at Area 132 in Tseung Kwan O to build a large substation that would bring a new transmission cable from the mainland to Hong Kong, facilitating the import of zero-carbon energy. The government has applied to the Legislative Council for funding and is preparing to start construction.
Additionally, the government has set up a working group and begun discussions with various organisations and enterprises to secure cheaper zero-carbon energy supply, Tse said.
