LCQ15: Measures to promote electric vehicles amid high oil prices
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Question:
High oil prices in Hong Kong, caused by international geopolitical instability, have added to the economic burden on private car owners. Meanwhile, the Government's "One-for-One Replacement" Scheme for electric vehicles (EV) (the Scheme) expired on 31 March 2026. There are views that amid the prevailing high oil prices and the climate crisis, the Government needs to review its green transport policies to alleviate the burden on the public and maintain the momentum of carbon reduction. In this connection, will the Government inform this Council:
(1) whether, from the perspectives of "energy security" and "relieving public hardship", the Government will consider extending the Scheme to ensure that the target of ceasing new registration of fuel-propelled private cars (including hybrid vehicles) in 2035 or earlier can be achieved as scheduled; if so, of the details and timetable; if not, the reasons for that;
(2) whether, with a view to reducing the difficulties in installing EV chargers in aged buildings and private housing estates, the Government will consider: (i) relaunching the EV-charging at Home Subsidy Scheme or setting up a dedicated fund to subsidize owners of aged buildings to upgrade their electrical equipment; and (ii) reviewing and relaxing the restrictions on the provision of charging facilities in indoor/covered car parks and outdoor/open-air car parks, so as to enhance the willingness of property management companies and owners' corporations to install EV chargers; if so, of the details and timetable; if not, the reasons for that;
(3) as the industry has relayed that the progress of installing quick chargers in old districts is often constrained by factors such as insufficient grid capacity or limited space in transformer rooms, whether the Government will review the approval criteria for electricity investment under the Scheme of Control Agreements, so as to require power companies to upgrade cables and substations in advance in areas with high growth in electricity demand; if so, of the details; if not, the reasons for that; and
(4) in view of the longer time required for power grid upgrades, whether the Government will draw on Mainland and overseas experience and proactively introduce "mobile EV charger" technology as a flexible means to bridge infrastructure gaps and alleviate the "range anxiety" of vehicle owners; if so, of the specific implementation plan; if not, the reasons for that?
Reply:
President,
My response to the question raised by the Hon Ray Wong is as follows:
(1) The Budget announced that the first registration tax (FRT) for electric commercial vehicles, electric motor cycles and electric motor tricycles would continue to be waived in full until end-March 2028. The FRT concession arrangement for electric private cars (e-PCs), including the "One-for-One Replacement" Scheme (the Scheme), ceased to operate upon its expiry at the end of March this year. In his concluding remarks during the resumption of the Second Reading debate on the Appropriation Bill 2026 at the Legislative Council meeting on April 29, the Financial Secretary, Mr Paul Chan, stated that the Government fully exempted the FRT for all electric vehicles (EVs) for a total of 23 years, from 1994 to March 31, 2017. During the period from April 1, 2017 to the end of March 2018, the FRT concession cap for EVs was set at $97,500. The arrangement was further adjusted in 2021. The Government extended the arrangement which was due to expire last year to the end of March this year after considering Members' views. After taking various factors into account, the Government is of the view that sufficient time has already been given for the market to adapt to the shifts. At the same time, as presented in the Updated Version of the Hong Kong Roadmap on Popularisation of Electric Vehicles, the penetration rate of new e-PCs in Hong Kong has continued to climb in recent years, with significant improvements in vehicle prices, model selection, vehicle performance and charging infrastructure. At present, e-PCs have clear advantages over fuel-propelled private cars (PCs) in terms of both vehicle price and operating costs. Additionally, e-PC technology has matured, making the trend towards popularisation of e-PCs irreversible. Private market forces have already dominated the green transition of PCs. Against this backdrop, the Government discontinues the Scheme according to the original timetable. Moving forward, the Government will focus on improving the supporting infrastructure for the charging network to bring convenience to e-PC owners.
(2) The EV-charging at Home Subsidy Scheme (EHSS) was launched in October 2020, with a total funding of $3.5 billion allocated in 2 phases. The EHSS ceased accepting applications on December 31, 2023. The Environmental Protection Department (EPD) completed processing all applications in early 2024. The EHSS is expected to cover about 140 000 parking spaces in about 700 car parks of existing private residential buildings and housing estates, accounting for about half of the eligible parking spaces in Hong Kong. As at end-March 2026, 488 car parks (covering about 87 010 parking spaces) have completed the installation works. The number of parking spaces installed with EV charging-enabling infrastructure (EVCEI) is expected to be further increased to 117 000 by end-2026, and to achieve the anticipated target as scheduled by 2027. The EPD will continue to provide technical support to EHSS applicants (including property management companies and incorporated owners) to expedite the installation of EVCEI.
In order to be eligible for the EHSS, the number of parking spaces in open area in the car park must be less than 60 per cent of the total number of eligible parking spaces. This is to avoid spending most of the subsidy on road excavation works and additional cable support facilities needed for supplying electricity to those parking spaces, thereby maximising the use of limited resources to benefit more estate car parks. In fact, the vast majority of applications under the EHSS are for indoor or covered car parks. Only five applications (0.6 per cent of all applications) were disqualified because parking spaces in open area accounted for more than 60 per cent of the total. The Government has no intention to relax this eligibility criterion.
In terms of upgrading the electrical equipment, we note that the EHSS has successfully encouraged the installation of EVCEI at parking spaces of many private residential buildings and housing estates, driving the market demand for charging facilities for e-PCs. At present, there are multiple charging service operators in the market offering various charging facility installation solutions for housing estates and vehicle owners to choose from. The two power companies have been supporting the Government in promoting the installation of EV charging facilities in private residential buildings and housing estates, including the provision of free assessments and technical support on matters such as the power supply capacity of buildings and the installation of charging facilities. At present, the Government has no plan to relaunch or introduce any new scheme to subsidise private housing estates in upgrading their electrical installations for the installation of chargers.
(3) According to the Scheme of Control Agreements signed between the Government and the two power companies, the two power companies shall pledge to provide adequate power generation and transmission facilities to meet the demand for electricity, which include assisting the development and installation of EV chargers, and provide, operate and maintain adequate electricity facilities for new development areas.
The two power companies have earlier published Power Availability Maps for all districts in Hong Kong to facilitate charge point operators (CPOs) in planning and installing charging facilities in different districts. The Government will maintain communication with CPOs to understand potential issues they may encounter in expanding charging facilities, and relay them to the two power companies for coordination and follow-up. Additionally, through the working group established with the two power companies earlier this year, the Government will also review the electricity demand arising from charging facilities and the grid capacity of the relevant areas, so as to help identify potential constraints early and, where necessary, study appropriate grid and related facility arrangements to meet the growing demand for EV charging.
(4) The Government adopts a technology-neutral principle towards all forms of charging technologies, and welcomes the trade to introduce various types of charging technologies to Hong Kong to accelerate the development of EVs. The Government has noticed the development of Mobile Charger technology or energy storage systems and their benefits in saving costs and time required for constructing power infrastructure as well as enhancing the operational flexibility of charging services. Therefore, fast chargers utilizing new technologies such as battery energy storage systems and Mobile Chargers will be eligible for applying for the $300 million Fast Charger Incentive Scheme launched in July 2025. We have approached some enterprises who are interested in promoting Mobile Charger technology and energy storage systems in Hong Kong, explaining the Government's measures and support available to promote the popularisation of EVs.
Ends/Wednesday, May 6, 2026
Issued at HKT 12:00
Issued at HKT 12:00
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