LCQ11: Electricity power planning for Northern Metropolis
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     Following is a question by the Hon Chan Yung and a written reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (April 1):
 
Question:
 
     To proactively align with the requirement set out in the National 15th Five-Year Plan to thoroughly implement the new energy security strategy and accelerate the construction of a clean, low-carbon, safe and efficient new energy system, the Hong Kong Special Administrative Region (SAR) Government is making every effort to draw up its first five-year plan and at the same time accelerating the development of the Northern Metropolis (NM). Among other things, it is planned to develop Sandy Ridge into a large-scale high-tier data facility cluster, with a view to reinforcing Hong Kong's strategic positioning as an international innovation and technology (I&T) centre. However, there is widespread public concern as to whether the existing energy planning can support the enormous supercomputing capacity required for the future development of NM. There are views that the success or failure of NM hinges on the construction of a clean and low-carbon power system that complies with national security standards and is effective in responding to geopolitical risks. In this connection, will the Government inform this Council:
 
(1) given that the SAR Government will introduce dedicated legislation to accelerate the development of NM, how the authorities will leverage such legislation to promote the establishment in NM of an integrated energy system that combines electricity, computing power and low-carbon development (electricity-computing-carbon integrated energy system); whether reference has been made to the national development strategy of "computing-power co-ordination", with early consideration given to the super-electricity power planning and the supercomputing sector's industrial layout for NM;
 
(2) given that Hong Kong is formulating its five-year plan and has listed "accelerating the development of NM" as one of the six integrated areas, whether the SAR Government will, in the five-year plan, set out a clear development roadmap and phased targets for the electricity-computing-carbon integrated energy system in NM;
 
(3) as there are views that in order to achieve an energy structure that is clean, low-carbon, safe and providing abundant supply, economical and efficient, well-co-ordinated between supply and demand, and flexible and intelligent, it is impossible to rely solely on Hong Kong's very limited green electricity resources and it is necessary to rely on the cross-boundary import of super-green electricity from the Guangdong-Hong Kong-Macao Greater Bay Area, whether the SAR Government has discussed the cross-boundary import of green electricity with the relevant Central ministries; if so, of the progress;
 
(4) whether the SAR Government has assessed the short-, medium- and long-term super-electricity demand required by the I&T industry in NM; if an assessment has been made, of the details and assessment outcomes, as well as the specific supporting policies on super-electricity infrastructure formulated by the authorities in response to such outcomes; and
 
(5) as there are views that electricity tariffs are one of the important factors affecting the development of high-tier data centres in NM, whether, in the long run, the authorities will consider discussing with the two power companies a downward adjustment of electricity tariffs, so as to enhance the attractiveness of developing high-tier data centres and the supercomputing industry in NM?
 
Reply:
 
President,
 
     In response to the question raised by the Hon Chan Yung, in consultation with the Development Bureau and the Innovation, Technology and Industry Bureau (ITIB), the reply is as follows:
 
(1) and (2) The Northern Metropolis (NM), a strategic development area in Hong Kong, represents a substantial source of economic value and development potential. The NM adopts an "industry-driven" approach as its key planning axle. Through the provision of new development land, the NM could drive the development of Innovation and Technology (I&T) and other industries, support Hong Kong's integration into and contributions for the overall national development, as well as supporting Hong Kong to become an international I&T hub under the new industry pattern of "South-North dual engine (finance-I&T)".
 
     In terms of I&T development, the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, the San Tin Technopole and the Sandy Ridge Data Facility Cluster site in the NM are being developed under the steer of the ITIB. The ITIB aspires to provide I&T enterprises with strategic significance, in particular those from the Chinese Mainland and overseas intending to set up business in Hong Kong, with an option of high-quality I&T site to establish research and development and design centres, pilot production bases and/or mass production facilities for related industries; and to form a vibrant I&T industry chain which provides solid support for accelerating the development of new quality productive forces and achieving new industrialisation in Hong Kong.
      
     The purposes of introducing a dedicated legislation by the Government to accelerate the development of the NM are to facilitate and expedite topside developments of the Government and the private sector, and promote industry anchoring and operation. The dedicated legislation will focus on handling subjects that require legislative procedures, including relaxing restrictions under existing laws and regulations. It will complement with various policies (such as those for attracting businesses and promoting industry development) and administrative measures (such as measures to expedite approvals for private projects) to accelerate the development of the NM altogether. The dedicated legislation pinpoints three main objectives, viz. to further remove barriers in respect of planning and lands procedures in the NM; expedite construction works; and facilitate industry operation. It will clearly specify the six policy areas where subsidiary legislation can be enacted, which include streamlining town planning procedures; expediting compensation payment for land resumed; facilitating the adoption of innovative construction technologies arrangement; streamlining the procedures and requirements for construction noise permit applications; facilitating and regulating cross-boundary flow of elements; and authorising the Government to establish statutory corporations for designated areas. Therefore, the dedicated legislation does not contain provision relevant to matters on arrangement of electricity supply and construction of energy system in the NM.
 
(3), (4) and (5) The Government has signed the Scheme of Control Agreements (SCAs) with the two power companies, under which they are obliged to contribute to the development of Hong Kong (including the NM) by providing, operating and maintaining sufficient electricity related-facilities and supplying electricity to meet the demand, including the demand from the I&T sector. In this regard, the CLP Power Hong Kong Limited has, in accordance with the five-year Development Plan under the SCA, carried out various capital projects for the planning and construction of the NM, including the electricity supply facilities in the new development areas, such as the Lok Ma Chau Loop and Hung Shui Kiu which are under construction, so as to tie in with the overall development of the NM and ensure stable electricity supply.
 
     Through enhancing regional co-operation, the Government is increasing the use of zero-carbon energy in electricity generation in order to spearhead high-quality development in Hong Kong. With the enhancement of the Clean Energy Transmission System by end-2026, Hong Kong will be able to gradually import more zero-carbon energy from the Chinese Mainland. The Government also keeps planning ahead for the construction of electricity facilities to receive and process zero-carbon energy transmitted from other places. This will progressively reduce Hong Kong's reliance on fossil fuels for electricity generation, and help to achieve the long-term goal of net-zero electricity generation as set out in Hong Kong's Climate Action Plan 2050. Since the price of zero-carbon energy is more stable than that of fossil fuels, increasing the use of zero-carbon energy will not only help stabilise electricity prices, but will also benefit the sustainable development of industries with higher electricity demand (such as the I&T industry).
      
     The Government will continue to monitor the ongoing development of Hong Kong's electricity market, explore modes of power supply that meet the needs of emerging industries, address the changing demands of the industries, and better support the continued high-quality development of Hong Kong, in particular the NM.

Ends/Wednesday, April 1, 2026
Issued at HKT 12:52

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