BusinessPerformance
- Strong financial performance and material improvements from EnergyAustralia
- Operational delivery on projects, and fleet contributing to supply reliability and energy transition
- Delivering growth in decarbonising markets and securing future recurring earnings
- Dividend growth of 1.6% maintaining track record of distributing to shareholders
- Finalised strategic review which sets foundation for long term sustainable growth through energy transition
Performance by Region
Hong Kong
- Operating earnings: Strong contribution driven by permitted return on higher average net fixed assets impacted by lower performance incentives (five-year incentives in 2023 not repeated) and higher interest costs
- SoC capex: HK$10.8b (including Generation: HK$2.8b; T&D/services: HK$8.0b)
- Power generation: Combined-cycle gas turbine (CCGT) D2 unit and offshore liquefied natural gas (LNG) terminal in operation, completed major gas infrastructure to enable phasing down of coal. Completion of phase 2 of West New Territories Landfill
- Local electricity sales: Up 2.1% driven by gathering pace of Hong Kong’s economic recovery and higher temperatures
- Smart City: Connecting customers and corporates to zero carbon energy solutions (cooling, solar, batteries, smart meters, energy management), electrification and data centre development
Outlook
- Major projects: Supporting infrastructure development and growth (T&D investments, Northern Metropolis), in-progress Clean Energy Transmission System (CETS), smart meter rollout, grid scale battery, pilot hydrogen blending
- Energy transition: Continue to decarbonise the energy system, including working with Government to increase zero-carbon imports for 2035 decarbonisation target
- Customer energy solutions: Deliver energy management and infrastructure solutions to address customers’ evolving energy needs and transition to a lower carbon economy
- Low carbon transportation: Support development of cleaner maritime fuel and electric transportation
- Support for customers and communities: >HK$200m from CLP Community Energy Saving Fund dedicated to customer and business support, as well as promoting decarbonisation and energy saving
Mainland China
- Nuclear: Lower market tariff and higher costs at Yangjiang, and lower generation at Daya Bay due to 30th-year planned major outage
- Renewables: Lower contributions from two legacy projects exposed to curtailment and tariff pressure, partially offset by contributions from new wind and solar projects and better hydro resources. Successful launch of centralised control centre in East region to drive operational efficiency and cost optimisation
- Thermal: Stabilising fuel prices and lower O&M costs with lower energy sold. Early exit of minority interest in SZPC coal assets
- RE projects in execution: 1.8GW of renewables and battery projects in execution including CLP China’s largest wind (0.3GW Shandong) and solar (0.3GW Guangxi), and first standalone battery energy storage system (0.1GW Shandong)
- Green contracts with corporate customers: Signed two large-scale and long-term energy offtake agreements, including largest power purchase agreement for CLP China to date, to supply green power from RE projects in Jiangsu and Guizhou
Outlook
- Nuclear: Maintain safe operations and deliver stable earnings, with increasing market tariff exposure for Yangjiang
- Renewables growth: Momentum for quality renewable capacity additions in support of government’s 30-60 dual carbon targets and demand: ~0.8GW construction quotas secured
- Business models and partnerships: Deliver RE growth and value accretive projects in targeted footprint. Optimise tariff stability using green power corporate PPA and fleet operational efficiency. Explore various business models, including establishing a clean energy fund and partnerships
Australia
- Energy: Higher wholesale prices and good operating performance from Mount Piper and Yallourn, combined with improved hedge book outcomes contributed to the strong performance. Yallourn: Improved availability upon completion of refurbishment programme; Mount Piper: Improved coal deliveries with multi-mine contract in place to enable excellent availability during high price events
- Customer: Margin compression and decline in customer accounts, driven by intense price competition coupled with higher costs from cost of living pressures
- Flexible capacity projects: Tallawarra B fast-start gas generator in operation. Executing Wooreen and Hallett battery energy storage system (BESS). Contracted capacity for Orana battery
- Renewable energy PPAs in execution. Contracted capacity for Golden Plains stage 2 wind farm
- D&A: Higher depreciation for Yallourn
Outlook
- Energy: Stable wholesale prices, albeit softer in 2025. Continue to maintain availability in environment of price volatility, noting increase in fuel cost with end of coal price cap for Mount Piper
- Customer: Continued competitive market conditions. Focus on competing effectively while making efficiency improvements and uplift to business support and technology systems
- Enabling the energy transition: Expand contract renewable portfolio to up to 3GW by 2030. Invest in flexible capacity leveraging business models and partnerships including Hallett BESS, Lake Lyell pumped hydro and Mount Piper BESS
India
- Renewables: Lower wind resources and lower interest received on late payments from debtors
- Transmission & Advanced Metering Infrastructure (AMI): Transmission: Higher earnings from revised tariff. AMI: Development milestones achieved for two projects and growing portfolio of > 6.8 million smart meters to be installed in six states
- Thermal: Jhajjar upheld its position as one of India’s best-run thermal plants achieving record levels of operating efficiency, and higher offtake tariff due to emissions control requirements
- Non-carbon projects in execution: Equivalent of ~2GW of non-carbon projects in execution: 4 transmission, 4 renewable energy (including largest solar (0.3GW) to date) and 6 AMI projects
- Corporate expenses: Gain from successful exit of Dedasari solar project
- Regulatory Approval (GFR Registration): 3-year renewal for the right to pursue greenfield investments
- Receivables: Reduction in overdue receivables and solid cash flow position enabling return of capital
Outlook
- Macro: With the latest GDP growth forecast of 6.7% and electricity demand expected to increase by 6.5% in 2025-26, the decarbonisation of India’s expanding economy opens up more growth opportunities for our joint venture
- Zero carbon growth investments: Continue to build out balanced portfolio of renewables, transmission, AMI and battery storage businesses and execute growth strategy
Taiwan Region and Thailand
- Thermal: Lower generation and remedial costs incurred due to the earthquake in April, as well as lower recovery of coal costs
- Solar: Step down of PPA tariff for the second phase, and lower tariff in line with Thai Government policy
Outlook
- Thermal: Focus on managing fuel costs and supply and maintain good operational and safety performance to deliver reliable return
- Renewables: Continue to maintain reliable plant operations and pursue further renewable energy growth in the region