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Following is a question by the Hon Chan Hak-kan and a written reply by the Secretary for the Environment, Mr Wong Kam-sing, in the Legislative Council today (February 11):
Question:
The authorities have earlier conducted a review of the Third Technical Memorandum for Allocation of Emission Allowances for Power Plants. The focus of the review is to study, based on the electricity demand forecast of 2019, the measures that could be employed to introduce the best practicable means to further reduce the allowances on emission of the three specified air pollutants, namely sulphur dioxide, nitrogen oxides and respirable suspended particulates, by power plants. However, there are views that the Government's current practice of merely restricting the emissions of the three aforesaid air pollutants without control on carbon dioxide emissions by power plants is unsatisfactory. In this connection, will the Government inform this Council:
(1) as some green groups have pointed out that power plants create a considerable level of carbon emissions, whether the authorities have plans to regulate the carbon emissions from electricity generation by the power plants of the two power companies; if they have such plans, of the details; if not, the reasons for that;
(2) as energy efficiency maximisation helps reduce greenhouse gas emissions, and the authorities have provided the two power companies with financial incentives in respect of energy saving and energy audits in order to incentivise them to enhance energy efficiency performance, whether the authorities will consider increasing such financial incentives and requiring the two power companies to set energy efficiency targets; if they will, of the details;
(3) as the authorities are currently providing economic incentives to the two power companies in terms of a higher permitted rate of return for their investment in renewable energy (RE) facilities, and an additional bonus in permitted return depending on the proportion of RE being used in their electricity generation, whether the authorities have considered increasing such economic incentives so as to encourage the two power companies to use more RE in electricity generation; if they have considered, of the details; if not, the reasons for that; and
(4) as buildings account for about 90 per cent of electricity consumption in Hong Kong at present, and the Buildings Energy Efficiency Ordinance (Cap 610), which came into effect as late as 2012, only requires the major building service installations of new buildings as well as existing buildings undergoing major retrofitting to comply with the relevant energy efficiency standards, of the measures put in place by the Government to encourage the users and managers of existing buildings to use energy-efficient building service installations with a view to reducing greenhouse gas emissions, and whether it has conducted any review of the effectiveness of such measures; if it has, of the outcome?
Reply:
President,
(1) In accordance with section 26G of the Air Pollution Control Ordinance (Cap 311), the Secretary for the Environment shall allocate emission allowances for sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable suspended particulates (RSP) for electricity generation plants by way of a technical memorandum for the purpose of improving the air quality. It does not cover carbon dioxide.
Since there is currently no mature and practicable technology that can reduce the emission of carbon dioxide (i.e. carbon emission) from thermal power plants, it is a generally accepted international practice to increase the use of clean fuels such as natural gas and renewable energy, etc., and adopt energy-saving and emission-reducing measures to reduce carbon emission from electricity generation. In this context, we have required power plants to increase the share of clean fuels in electricity generation, and the share of natural gas in local electricity generation will increase from this year onwards. This measure will also reduce the emissions of air pollutants such as SO2, NOx and RSP as compared to coal-fired generation. We will continue to closely monitor the development of emission reduction and carbon reduction technologies relating to power generation with a view to evaluating their suitability for local application.
On the other hand, we proposed two options of future fuel mix for electricity generation for public consultation in March to June last year. One of them is to import more electricity through purchase from the Mainland power grid; another is to use more natural gas for local generation. Both options can help us achieve the pledged environmental targets, viz. to reduce carbon intensity by 50 to 60 per cent by 2020 when compared to 2005; and to reduce the emission of SO2, NOx and RSP by 35to 75 per cent, 20 to 30 per cent and 15 to 40 per cent respectively by 2020 when compared to 2010.
(2) and (3) The current Scheme of Control Agreements (SCAs) signed between the Government and the two power companies provide the two power companies with financial incentives in respect of energy saving and energy audits to encourage them to enhance energy efficiency performance. Regarding energy saving, the power companies are eligible for an incentive payment if they achieve specified targets in a particular year.
To promote the development of RE, the Government has provided economic incentives to the power companies under the SCAs in the form of a higher permitted rate of return for their investment in RE facilities, and an incentive adjustment in the permitted return depending on the extent to which RE is used in electricity generation.
The Government is conducting a review of the future development and the regulatory framework of the electricity market upon the expiry of the SCAs in 2018. When we consult the public on the future development and regulatory framework of the electricity market later this year, we will seek public views on the development and application of RE and energy efficiency, which can assist us in considering whether the mechanism to promote energy saving, energy audits and development of RE should be reviewed.
(4) To enhance building energy efficiency performance in Hong Kong, the Buildings Energy Efficiency Ordinance was fully implemented in September 2012. The Ordinance requires new buildings and existing buildings undergoing major retrofitting to comply with the energy efficiency standards and requirements specified in the Building Energy Code (BEC) in respect of air-conditioning, electrical, lift and escalator and lighting installations. All commercial buildings and commercial portion of composite buildings that were built before the commencement of the Ordinance are also required to conduct the first round of energy audits by batches before September 2016, and thereafter once every 10 years. The buildings are also required to display the energy audit form in a prominent position at the main entrance of the building. Energy audits are systematic assessments of the effectiveness of a building's energy system which could identify viable energy management opportunities in order to maximise the energy use of the building. For new buildings, the implementation of the Ordinance is expected to result in energy saving of 2.8 billion kilowatt-hour, and hence a reduction in carbon dioxide emission of about 1.96 million tones, in the first decade.
To enhance building energy efficiency, the EMSD has launched various publicity and education programmes since 2011 to help the public, building users, property management and relevant sectors understand the requirements of the Ordinance, including the Minimum Energy Efficiency Standards as set out in the BEC. As for public education, the EMSD has arranged over 110 seminars and briefing sessions for the building sector, registered energy assessors, property management officers, professional bodies as well as the business sector and general public. So far, more than 10 000 people have participated in the programmes. The EMSD has also visited schools, building owners and property management to promote the statutory requirements and environmental benefits of the Ordinance.
To further promote the importance of improving building energy efficiency, we have broadcast APIs on television and radio, developed a dedicated website (www.beeo.emsd.gov.hk) and distributed pamphlets, flyers and posters about the Ordinance, in addition to publishing relevant featured articles in newspapers and periodicals to encourage different sectors of the community to comply with the Ordinance and to adopt energy efficient building services installations for improving the environmental performance of the buildings.
Ends/Wednesday, February 11, 2015
Issued at HKT 13:26
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