Business Performance
- Solid financial performance driven by dependable core Hong Kong and Mainland China businesses and progressive recovery at EnergyAustralia
- Approval of the 2024-2028 Development Plan in Hong Kong with HK$52.9 billion capital expenditure
- Operational excellence and project execution across the Group, with focus on efficiencies and capability uplift for scale and speed
- Strong momentum in zero carbon investments. Strengthened greenhouse gas emissions intensity target in Climate Vision 2050
Performance by Region
Hong Kong
- Stable financial performance due to higher average fixed assets and increased performance incentives
- Offshore LNG terminal in operation
- Interim Review and 2024-2028 Development Plan agreed with Government to support the growth and development of Hong Kong and reduction of carbon emissions
- Local electricity sales up 1.6% driven by commercial, infrastructure and public services
Outlook
- 2024-2028 Development Plan: Deliver approved HK$52.9 billion capex under the 5-year plan to support Hong Kong’s economic and infrastructure development
- Major projects: Network reliability and growth, Black Point new gas-fired D2 generation unit; grid scale battery, pilot hydrogen blending, Clean Energy Transmission System in-progress, smart meter rollout
- Manage cost pressure: Remain committed to cost control and a diversified fuel strategy to ease the tariff pressure on customers following a reduction in tariff in 2024
- Energy transition: Continue to decarbonise the energy system, including working with Government to increase zero-carbon imports, to deliver reliable, affordable energy
- Support for customers and communities: Over HK$200 million from CLP Community Energy Saving Fund to support people in need and encourage energy saving
- Customer energy solutions: Deliver energy management and infrastructure solutions to customers to support decarbonisation
Mainland China
- Nuclear: Main contributor to earnings with record high output from Yangjiang, offset by major planned outage in Daya Bay
- Renewables: Additional contributions from new wind and solar projects
- Thermal: Loss from minority-owned assets
- Signed 4 renewable energy supply contracts with multinational / Hong Kong corporate customers to support decarbonisation
- Higher development expenses for renewable growth
Outlook
- Nuclear: Daya Bay and Yangjiang will continue to be main earnings drivers; proactively exploring other nuclear power opportunities in the medium- to long-term
- Focused growth and healthy renewable pipeline: Target to double renewable capacity in the medium term
- Market reform: Continue to manage the risk of market sales and build pipeline of corporate PPAs with corporate renewable energy buyers to sustain tariff
- Customer energy solutions: Focus resources in the Greater Bay Area to develop energy management and infrastructure solutions to key strategic customers and local government to support decarbonisation
- China’s Power sector: Capitalise on government’s policy support and investment in 3060 Dual Carbon targets, favourable interest rate environment and CLP’s reputation as a trusted external player
Australia
- Energy: Significant reduction in losses driven by 1) Yallourn and Mount Piper’s higher realised prices; 2) non-repeat of high costs to settle forward contracts not covered due to generation shortfall; 3) higher gas portfolio margins (very high purchase costs in 2022 not repeated); and 4) higher contributions from renewable PPAs
- Customer: Unfavourable retail customer book with higher energy procurement costs and one-off favourable hedging outcome in 2022. Adverse retail market trends negatively impacted churn leading to lower customer accounts
Outlook
- Energy: Focus on asset availability, reliability and flexibility. 1) Yallourn: Continue maintenance programme to support generator reliability; 2) Mount Piper: Invest in flexibility to capture need for firming capacity in NSW and continue to ensure the security of coal supply
- Customer: Continued pressure on retail margins, sustained competition and customer affordability challenges
- Investing in renewable energy and firming capacity: Expanding renewable portfolio and delivering next wave of flexible capacity assets and dispatchable energy: gas peaker (Tallawarra B), battery storage (Wooreen, Hallett, Mount Piper) and pumped hydro (Kidston, Lake Lyell) in line with Climate Transition Action Plan
- Building a sustainable retail business to underpin generation and capture electrification and “behind the meter” opportunities
India
- Renewables: Higher generation from wind and solar portfolio, and higher interest received on delayed payments from debtors
- Thermal: Excellent performance from Jhajjar leading to higher earnings
- Transmission & smart meter: Solid performances from transmission assets and lower finance cost
Outlook
- Growth investments: ~1,200MW of non-carbon projects won in 2023 / early 2024, including 300MW wind project in Karnataka, 250MW solar project in Rajasthan and 3 transmission projects and 2 advanced metering infrastructure projects
- Sidhpur wind farm: Completion of full 251MW capacity in 1H2024
- Macro environment: Power sector will continue to support the robust growth of the nation's economy
Taiwan Region and Thailand
- Thermal: Solid operational performance from Ho-Ping. Coal margin was improved in 2023 following the amendment to the energy tariff reimbursement mechanism from 1 July 2022
- Solar: Expiry of incentive tariff for 8MW phase under the PPA, partially offset by increased tariff as notified by Thai authorities
Outlook
- Thermal: Focus on managing fuel costs and supply. Continue to manage operations to deliver reliable return