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Following is the speech by the Acting Secretary for Economic Services, Ms Maria Kwan, at the International Conference on Electrical Engineering '99 on "Energy into the 21st Century" today (Monday) (English only):
Professor Chan, Professor Akizuki, Professor Park, Professor Zeng, Ir Poon, distinguished delegates, ladies and gentlemen,
I am delighted to be able to meet you all at this International Conference on "Energy into the 21st Century". On behalf of the Hong Kong Special Administrative Region Government, I extend a special welcome to all of our visitors from overseas.
The theme of this Conference is that, as we move into the next millenium, engineering professionals worldwide are facing unprecedented challenges in providing reliable, safe, clean and competitive electrical energy. Though I am a relative newcomer to energy matters, one thing has quickly become clear to me - exactly the same challenges face those formulating energy policy.
These challenges arise because powerful conflicting demands need to be reconciled. On the one hand, the question of climate change has become a major issue for the global community, prompting pressure for reduction of greenhouse gas emissions and more to be done to promote energy efficiency and conservation. On the other hand, we all aspire to higher economic growth and more comfortable lifestyles, which encourage greater consumption of electrical energy.
Actions to promote changes in patterns of energy consumption to achieve environmental objectives therefore need to be weighed carefully against any possible economic and social costs. These considerations point clearly to a need for a well thought-out and balanced approach to energy policy, taking into account the legitimate interests of different stakeholders and the need for broad public support and participation.
I would therefore like to take this opportunity to describe how Hong Kong is trying to ensure that electrical energy is generated and used in ways which balance the needs of the economy and the environment, and highlight some of the key areas in which engineering professionals will be interested.
In Hong Kong, we have adopted an energy policy which gives emphasis both to meeting energy needs and minimising environmental impact. The Government's policy is to ensure that the energy needs of the community are met reliably, efficiently, safely and at reasonable prices and to promote the efficient use and conservation of energy and the minimisation of the environmental impact of energy production and use. To this end, my Bureau works hand in hand with colleagues in the Planning, Environment and Lands Bureau and the Electrical and Mechanical Services Department.
All of Hong Kong's energy supplies originate from external sources. Electrical energy is imported as nuclear power from the Mainland of China or produced locally using imported coal, diesel and natural gas. Our sources of fuel for electricity production are well diversified and arrangements have been made for storage of reserve supplies. We have adopted planning criteria geared to good reliability standards. Our two power companies are interconnected. In addition, we are interconnected with other parts of the South China electricity grid. We can therefore expect a secure supply of electricity in all but the most exceptional of circumstances.
While the reliability of electricity supply in Hong Kong exceeds 99.99 per cent, recent minor outages locally and more serious outages overseas have reminded us all that a reliable electricity supply can never be taken for granted. Reliability of supply depends on good system planning, good engineering and operation, good maintenance, and sufficient resources in reserve to handle or recover quickly from unforeseen events. Our two power companies well recognise the need for continuing vigilance and improvement in the light of experience. My colleagues in the Electrical and Mechanical Services Department also maintain close monitoring of their technical performance.
At present, our two power companies are the sole suppliers of electricity in their respective service areas and we consider it prudent that they should be subject to rate of return regulation and government monitoring of their electricity-related financial affairs, in order to protect the interests of the consumer. We also wish to ensure that there are clear commitments by the companies to environmental protection and energy efficiency and conservation.
Lately, there has been increasing interest in whether additional interconnection would bring greater consumer benefit and whether more competition is feasible in the electricity market. In response to such sentiments, we are currently studying the feasibility and potential costs and benefits to consumers of increasing the capacity of the interconnection between our two power companies. We are also examining the prospects for increasing competition in the electricity supply sector. The consultancy report is being finalised. On completion, our plan is to publish it for public comments and views of engineering professionals will be more than welcome.
We also attach great importance to the efficient use of energy. Electricity companies are required to take energy efficiency and conservation into account in their planning. We are supportive of demand side management initiatives with a view to encouraging our community to contribute to energy efficiency and environmental protection. There are divergent views locally on how these objectives could best be achieved. We maintain an open mind and are giving careful consideration to views received before deciding definitively on implementation details.
In addition, my colleagues in the Planning, Environment and Lands Bureau and the Energy Efficiency Office of the Electrical and Mechanical Services Department have been actively promoting energy efficiency and conservation in numerous other ways. Many of these are areas in which electrical engineers are playing a major role.
The initiatives include statutory control over the Overall Thermal Transfer Values of new commercial and hotel buildings and progressive introduction of codes of practice for use of energy in commercial buildings. They have carried out energy audits in around 85 public sector buildings since 1993, identifying significant energy savings and many energy management opportunities. They have successfully introduced voluntary energy efficiency labelling schemes for refrigerators, room coolers and compact fluorescent lamps. They are also examining the wider use of water-cooled air conditioning and the feasibility of feeding electricity produced from waste-to-energy incineration into the electricity grid.
In response to international concern over global warming, Hong Kong has worked towards stabilising greenhouse gas concentrations in the atmosphere. Since 1990, we have managed to reduce our total greenhouse gas emissions by around 5 per cent, due mainly to the import of nuclear power from the Mainland of China and the use of natural gas as fuel wholly or partly in two of the four power stations in Hong Kong.
Environmental protection requirements also form an integral part of energy project planning. Such requirements have led to the electricity companies adopting low-sulphur coal and natural gas as fuel for electricity generation, flue gas desulphurisation and other emission-reducing technologies. Applications for new generating capacity require rigorous environmental impact assessment studies and incorporation of suitable mitigation measures where appropriate.
Hong Kong does not as yet make significant use of renewable resources to meet energy needs, but we are undertaking some pilot schemes. These include installation of solar thermal systems for water heating in nine government premises and introduction of photovoltaic systems to power equipment in a weather radar station and lighting in a public park. We intend to give further consideration to whether and if so how we might make more use of renewable resources. This is a further area in which there is scope for much input from electrical engineers.
Looking ahead, I believe that supply reliability, energy efficiency, and environmental protection together with open and competitive markets will continue to be the key themes in discussions on electrical energy. The Energy Working Group of APEC, in which we participate actively, is playing an important role in formulating broad policy principles in these areas. Other international gatherings such as this conference provide a more informal forum for a free exchange of experience, ideas and information. I have no doubt that most, if not all, of the issues that I have mentioned will be addressed in your deliberations over the next few days. I take this opportunity to wish you all a stimulating and productive conference.
Thank you.
End/Monday, August 16, 1999
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