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Government to further reduce emissions from power plants
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     The Government published today (October 23) in the Gazette the Fifth Technical Memorandum for Allocation of Emission Allowances in Respect of Specified Licences, which aims to further reduce the emissions of air pollutants from power plants from 2020 onwards. This will help to further improve air quality in both Hong Kong and the Pearl River Delta region.

     The new technical memorandum (TM), which is issued under the Air Pollution Control Ordinance, will cap the annual emissions of sulphur dioxide (SO2), nitrogen oxides (NOx) and respirable suspended particulates (RSP) from the power generation sector from 2020 at 7 670 tonnes, 21 270 tonnes and 585 tonnes respectively. As compared with the emission allowances for 2019 set under the Fourth TM, the proposed Fifth TM will further tighten the emission of both SO2 and NOx by 17 per cent as well as RSP by 16 per cent for the electricity sector.

     A spokesperson for the Environmental Protection Department (EPD) said, "In setting the new emission caps, we have taken into account the scope for further emission reductions by the two power companies given the latest electricity demand forecast for 2020. To meet the new emission caps, the power companies will have to reduce their reliance on coal-fired generation. For Hongkong Electric Company Limited, a new gas-fired generation unit would be required by the end of 2019 to meet electricity demand arising from the scheduled retirement of old coal-fired generation units. CLP Power Hong Kong Limited (CLP) will endeavour to import an additional 10 per cent of nuclear electricity from the Daya Bay Nuclear Power Station (DBNPS) beyond 2018 in addition to the 70 per cent of the nuclear electricity output from DBNPS under the existing supply contract.

     "As emissions from the power generation sector accounted for 47 per cent, 31 per cent and 16 per cent of the territory-wide emissions of SO2, NOx and RSP respectively in 2013, the tightened emission allowances will help improve the air quality in Hong Kong and the Pearl River Delta region.

     "For newcomers to the local electricity market, we will allocate emission allowances based on the emission performance of a new gas-fired generation unit adopting the latest technology for emission reduction. The Fifth TM will continue to retain the mechanism to cater for the intake of renewable energy."

     The Government set out in March this year its plan on the future fuel mix for electricity generation to increase the percentage of natural gas generation to around 50 per cent in 2020, and to maintain the current interim measure of importing 80 per cent of nuclear output from the DBNPS so that nuclear import would account for around 25 per cent of the total fuel mix. In response to the fuel mix plan for 2020, the CLP is undertaking an Environmental Impact Assessment for installing new gas-fired generation units at its Black Point Power Station. The EPD will review the TM again in 2016 when more information on the timing of their availability and capacity is available.

     The new TM will be tabled at the Legislative Council on October 28, 2015 for commencement before the end of 2015. The new set of emission allowances will come into effect on January 1, 2020, i.e. at least four years after the commencement of the TM, in accordance with section 26G(4) of the Air Pollution Control Ordinance.

Ends/Friday, October 23, 2015
Issued at HKT 12:01

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