3 -
Electricity generating capacity under review
The Government said today (Monday) that it had invited Hongkong Electric to do detailed site search and environmental impact assessment studies for new generating facilities likely to be needed in 2003.
The Government also said that it had urged China Light and Power to defer the last four units of its Black Point Power Station by 5 years so as to reduce its reserve margin.
The Secretary for Economic Services, Mr Stephen Ip, announced these decisions at a meeting of the Legislative Council's Panel on Economic Services today. He said that in reaching these decisions, Government had taken into account the interests of the consumer and the community.
Mr Ip said that a review by the Government's consultants of demand for electricity in Hongkong Electric's supply area up to 2005 had shown that the company would need additional generating capacity by 2003 if reliable supplies were to be maintained.
He said that the Executive Council had agreed last week that Hongkong Electric should continue with the preparatory work for new generating capacity, but without commitment on the part of the Government. The company had been informed.
Mr Ip stressed that the decision to invite the company to do further site and environmental studies did not mean that the Government had approved the company's proposal to build a new power station on Po Toi Island or anywhere else.
He said that it was necessary to proceed with the further studies now so that the Government is in possession of all of the necessary data when the time comes to make a final decision. He added that the studies will assume that there are two fuel options - coal and natural gas - and that Hongkong Electric will also make an intensive search for a supplier of natural gas.
Mr Ip went on to say that a review by the Government's consultants of demand for electricity in China Light and Power's supply area up to 2005 had shown that the company would have an excess of generating capacity up to that date.