BUSINESS PERFORMANCE
- Resilient business performance in 2020 amid the COVID-19 pandemic
- Operating earnings increased, driven by higher earnings from Hong Kong electricity business and positive changes in fair value of energy hedging contracts in Australia
- Achieved 2020 carbon intensity reduction target; carbon intensity fell to 0.57 kg CO2 / kWh, below the interim target of 0.60 under Climate Vision 2050
- Investments on decarbonisation in 2020 included the commissioning of 550MW combined-cycle gas turbine generating unit in Hong Kong and the 50MW Laiwu III Wind Farm in Mainland China, in addition to acquisitions of two solar plants in India
- Continued to provide a steady electricity supply with a 99.999% reliability in Hong Kong
- Reduction in the Group’s Total Recordable Injury Rate at 0.32, with the Lost Time Injury Rate unchanged at 0.11. No workplace fatality for employees and contractors in 2020
- Ongoing transition towards Utility of the Future with diversified, strategic investments in new business models and technologies
- Evolving approach to core markets: Hong Kong remains at the heart of CLP’s business with increasing focus on the Greater Bay Area; continue to invest in low-carbon businesses in Mainland China while Australia and India add diversity
- Marking 120th anniversary in 2021 with a shared vision of an even-better tomorrow and a sense of deep responsibility to our communities
Performance by Region
Hong Kong
- Operating earnings increased 5.0% year-on-year to HK$7,818 million
- Electricity sales fell 0.9% from 2019, with higher sales to residential but lower sales to other sectors
- Customer accounts increased from 2.64 million to 2.67 million
- High supply reliability of over 99.999%1
- First CCGT unit at Black Point commissioned, increasing gas-fired generation proportion to around 50%; early civil works for second CCGT unit commenced
- Offshore LNG terminal construction continued
- Over 840,000 smart meters connected; 13,000+ applications received for Feed-in Tariff by end of 2020 and approved around 175MW, equivalent to annual electricity consumption of around 42,800 households
- New CLP mobile app provides customers with end-to-end digital experience, with nearly 50% year-on-year increase in downloads and usage
- Average Net Tariff kept unchanged in 2021
- Supported customers and the community during 2020 through a range of measures such as distributing dining coupons, and providing fuel subsidies and electricity bill payment deferral option for small and medium-sized enterprises. Rolling out over HK$160 million worth of support programmes in 2021 to ease customers’ hardship and help Hong Kong economy regain momentum from COVID-19
1 Supply reliability based on average unplanned customer minutes lost per year
Outlook
- Engage with Hong Kong Government on plans to become carbon neutral by 2050
- Continue investments in major projects under current 5-year Development Plan
- Accelerate digitalisation adoption within the business, pursue initiatives on renewable energy, and energy efficiency and conservation
- Maintain highly reliable power supply, and continuing support for customers, communities and employees
Mainland China
- Operating earnings of HK$2,233 million in 2020, a year-on-year decrease of only 1.9%
- About two-thirds of earnings in Mainland China generated by nuclear energy business
- Solid performance in renewables business thanks to diversified portfolio
- Reliable thermal energy operations, with higher demand at Fangchenggang Power Station
- Fangchenggang Incremental Distribution Network commenced supply to customers in 2020
- Committed to invest in Qian’an III Wind Farm, the Group’s first grid-parity project in Mainland China
- Joined China Southern Power Grid Co., Ltd to invest in CSG Energy Innovation Equity Investment Fund to capture opportunities in Greater Bay Area
- Made donations and provided support for COVID-19 medical relief, promoting hygiene in the communities and benefitting approximately 350,000 people
Outlook
- Pursue opportunities resulting from carbon neutrality targets
- Develop energy infrastructure initiatives and energy-as-a-service opportunities in the Greater Bay Area
- Monitor the evolution of market regulations and carbon trading. Market competition anticipated to continue with increased pressure on margins
India
- Operating earnings of HK$175 million down 33.5% year-on-year due to lower wind generation, partially offset by new transmission and expanded solar portfolio
- Two solar farms acquired in Telangana brought an additional 80MW of capacity
- Full availability of interstate transmission line in Madhya Pradesh since acquisition in November 2019
- Steady performance at Jhajjar Power Station
- Launched crop residue management project and provided relief support to help the communities
Outlook
- Continue to pursue investments in non-carbon assets subject to new foreign direct investment rules
- Progress construction of Sidhpur wind farm
- Actively pursue overdue receivables for renewable generation
Southeast Asia & Taiwan
- Operating earnings increased 15.2% to HK$386 million
- Ho-Ping Power Station in Taiwan recorded higher earnings reflecting higher generation and margin expansion as coal cost declined
- Lopburi Solar Farm in Thailand operated smoothly; earnings decreased due to expiry of tax exemption
- Withdrew from legacy Vung Ang II coal-fired development project in Vietnam, with exit from Vinh Tan III project underway
Outlook
- Continue to explore renewable energy opportunities in the region
- Reduction of contribution from Lopburi following tariff reduction under the PPA
Australia
- Operating earnings increased 7.9% to HK$1,690 million
- Expanded EnergyAssist hardship programme for residential customers impacted by bushfires, COVID-19 and emerging recession, launched Rapid Business Assist programme to aid small businesses
- Intense retail competition continued with 1% year-on-year decline in customer account numbers; stabilisation in second half driven by higher retention and acquisition
- Lower aggregate generation due to planned maintenance at Yallourn and Mount Piper power stations
- Falling wholesale prices affected margins in the Energy business
- Progress on flexible generation and storage options, including peaking gas-fired generation at Tallawarra, and agreement for full dispatch rights from proposed 250MW Kidston Pumped Hydro facility
- Acquired remaining 51% equity of solar and LED lighting company Echo Group to offer more clean and modern energy solutions
Outlook
- Emphasis on service excellence and customer support amid COVID-19 recovery
- Build a faster, lower cost Customer business that makes energy simple for customers
- Focus on asset availability, reliability and efficiency while completing major outages
- Assess future investment commitments in light of evolving regulatory and policy outlook
Innovation
