Speech by SEE at thematic session one of APEC Energy Ministerial Meeting in Korea (English only) (with photo)
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Thank you, Chair. Good morning fellow colleagues. As a vibrant metropolis and major international financial centre in the world, Hong Kong, China faces surging demand in electricity driven by the rapid expansion of our innovation and technology sector, in particular the increasing number of advanced manufacturing facilities and data centres in the city. Resilient and secure energy supply is of utmost importance to Hong Kong, China.
The electricity market in Hong Kong, China is regulated through the Scheme of Control Agreements signed between the Government and the two power companies. The Agreements set out the obligations of the power companies, and framework for the Government to monitor the companies' financial, technical and environmental performances. The Government conducts an annual tariff review with the two power companies to closely examine their tariff proposals. Incentive schemes are in place to encourage the power companies to promote energy efficiency and conservation.
With these efforts, Hong Kong, China enjoys one of the most reliable electricity supplies in the world and at the same time, keeps our tariffs at an affordable level. Households in the city on average spend around only 2 per cent of their expenditure for their electricity bills.
Looking to the future, we have adopted "net-zero electricity generation" as one of the major decarbonisation strategies. In this regard, we have stopped building new coal-fired generating units since 1997, and will cease using coal for daily electricity generation by 2035. Also, Hong Kong, China's first offshore LNG (liquefied natural gas) receiving terminal has commenced operation since 2023. It enables Hong Kong, China to procure natural gas at more competitive prices by diversifying the sources of natural gas supply, as well as enhances the stability and security of energy supply, providing strong support for Hong Kong's energy transition.
As a result, the current share of coal in electricity generation has reduced from about half 10 years ago to about one-fifth, while the share of natural gas has significantly increased from about a quarter to more than half, and a quarter is nuclear and renewable energy.
Our objective is to raise the share of zero-carbon energy in Hong Kong, China's fuel mix for electricity generation to about 60 per cent to 70 per cent by 2035. We are investing in the necessary infrastructure to increase our capacity to import zero-carbon energy.
The increase in the share of clean energy in our fuel mix will make the city less susceptible to fluctuation in prices of natural gas. This helps us ensure a stable electricity tariff.
Hong Kong, China will continue to explore and study different zero-carbon energy solutions in accordance with the city's long-term development needs, with a view to maintaining a stable and safe electricity supply and contributing the sustainable development of the APEC region.
Thank you.
Ends/Thursday, August 28, 2025
Issued at HKT 11:53
Issued at HKT 11:53
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