Because of the long lead time for commissioning new generating plant, HEC decided it was advisable towards the end of last year to place an order for plant required for commissioning in 1982. At that time an extremely advantageous offer (with conse- quent benefit to consumers) was made to the Company by a Japanese company, for the supply of 2 x 250 mw dual fired generating sets. HEC accepted this offer but, because the Ap Lei Chau power station is already fully committed (see paragraph 4 above), the Company does not have a site on which to place these new sets. It therefore applied to the Government for a new site.
7
The Government's initial reaction to the Company's application was that the provision of a site for yet another new power station could not be contemplated. As it had already been agreed that the China Light and Power Company (CLP) should be granted a large site (originally on Lantau but subsequently located at Tap Shek Kok, Castle Peak) for a new power station to cater for the increased demand for electricity in Kowloon and the New Terri- tories, it was felt that the two generating companies should co- operate more closely in planning and implementing future develop- ment. A system of interconnection between them might, for example, enable Hong Kong Island's future electricity needs to be met from CLP's new Tap Shek Kok power station. The Government favoured such an arrangement because consumers might benefit for the following reasons:
(a)
(b)
if the companies were able to maintain a joint reserve and to plan their rate of capital expansion on a broader basis, there should be a saving in capital cost;
there should be a saving in operating costs resulting from an earlier movement into generators of larger capacity which are more efficient and would produce cheaper electricity.
Common generation
8
Although discussions between the companies on the feasibility of common generation of electricity had been taking place intermittently for some time, no real progress has been made, for technical and other reasons. It was therefore decided to set up a working group, consisting of representatives of the generating companies and of the Government, to be chaired by the Secretary for Economic Services. The group was to explore the
CONFIDENTIAL ##
機密