20140321 Standard_Power competition closer in future supply

The public consultation on the future fuel mix for Hong Kong's power supply has thrown up the possibility of real competition in the electricity market.

That is because one of the two options under consideration in the government's consultation is for the territory to connect with the mainland's power grid.

Undersecretary for the Environment Christine Loh Kung-wai said that introducing competition in the power market will be the subject of a future consultation.

Hongkongers are now being asked to choose between importing 50 percent of the SAR's electricity from the mainland or using expensive natural gas.

Deputy Secretary for the Environment Vincent Liu Ming-kwong said the proposed option of importing electricity from the mainland's power grid has its advantages as compared with nuclear power generation by the Daya Bay plant in Guangdong.

Liu said at present, China Southern Power Grid has generated power with multiple sources of supply including hydropower, coal and natural gas.

Liu told a radio program: "We believe that there will be advantages for importing electricity from the mainland's power grid as there will be multiple sources of supply.

"If there is a problem in a particular source of supply, the China Southern Power Grid can still provide power via other sources of supply."

Importing electricity from the grid offers more flexibility.