CLP Holdings Ltd (CLP) declared Thursday that it would focus on nuclear and clean energy projects so as to fulfill the requirements of Hong Kong's Climate Change Strategy and Action Agenda.

The Agenda for the power sector, unveiled by the government in September 2010, proposed a mix set at 50 percent nuclear, 40 percent gas, 3 to 4 percent renewable energy and not more than 10 percent coal by 2020. The aim was to promote clean energy and reduce carbon-emissions.

CLP Chief Executive Officer Andrew Brandler said the utility provider would continue to invest in nuclear energy despite the heightened concern worldwide over the radiation leak at Japan's Fukushima nuclear power plant following a powerful earthquake in March.

CLP would stick to its target of non-carbon-emitting generating capacity of 30 percent by 2020 as laid down by the company's Climate Vision 2050, Brandler said.

"However ... the actual progress of our nuclear energy projects depends on the wishes of the Hong Kong government and the public," he said after the company's annual general meeting.

Secretary for the Environment Edward Yau said in the Legislative Council last month that the administration would evaluate the cost-effectiveness, reliability, security and environmental-friendliness of using nuclear energy in the city.

Meanwhile, CLP has started various hydro and solar projects in the mainland, India and Thailand to refine its fuel mix, CLP Chairman Michael Kadoorie said.

"CLP plans to add 172 megawatts of wind power capacity to its India energy portfolio this year. The company also started commercial operations at its mainland hydroelectric plant in Jiangbian, Sichuan province, on April 28. CLP entered the Thai solar energy market by acquiring a one-third stake in a 55-megawatt solar energy project at Lopburi," Kadoorie said.

Market analysts cautioned that a bumpy road lay ahead for CLP in the renewable energy business.

"For CLP to further expand nuclear energy projects, it really has to depend on both the attitudes of the local and mainland governments," said Dickie Wong, research manager at Kingston Securities. "After the Japanese nuclear leak crisis, I think the attitudes of both governments will be rather cautious to nuclear energy. Moreover, if any nuclear accidents occur, it will further take a toll on the prospects of nuclear energy business," Wong told China Daily.

"Regarding expanding into other renewable energy projects, it depends on whether there are attractive projects in the pipeline for CLP to expand," Wong added.

CLP has been on a buying spree to expand into the renewable energy business.

Its Australian-based unit TRUenergy spent HK$15.59 billion to acquire two new electricity assets and three project sites in New South Wales in December. It has also spent HK$1.95 billion and HK$1.97 billion in 2010 and 2009 respectively on the Thai solar project and the wind projects in the mainland and India.

Brandler said the company currently had no specific acquisition targets to fuel its profit growth performance.

China Daily

(HK Edition 05/13/2011 page2)