Recently published research from Business Monitor International, "Hong Kong Power Report 2013", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 07/06/2013 -- Thermal energy continues to account for the almost all of Hong Kong's domestic energy production; while there have been some tentative steps towards generating energy from renewable sources, these have been few and far between. Closer energy links with China raise questions about how best to reconcile Hong Kong's reliable energy service with China's more volatile market.
BMI forecasts that real Hong Kong's GDP growth will average 3.4% a year between 2012 and 2022, with an increase of 5.0% estimated for 2011. BMI is forecasting an average annual increase of 2.23% to 41.07TWh between 2013 and 2017. Thermal generation, comprising coal, gas and oil, is expected to grow by an average of 2.08% per annum over the same period, and average 2.57% between 2018 and 2022. Thermal power generation will continue to account for all of domestic production, with imports from nuclear and pumped storage capacity in China.
View Full Report Details and Table of Contents
Apart from domestic thermal energy production, Hong Kong is making limited progress in the field of renewable energy, with both China Light & Power (CLP) and Hong Kong Electric Co. (HEC) drawing up plans for offshore wind farms. In addition, Hong Kong imports electricity generated by nuclear power stations in mainland China - Hong Kong has no plans to build its own nuclear facilities - and CLP has struck a deal with Chinese firms over long-term plans to import natural gas.
Hong Kong stands in 12th position in BMI's Asia Power Risk/Reward Ratings (RRRs), thanks to its modest market size and below-average growth prospects. It scores above average for industry and country risks, with its total score dragged down by the rewards side of the matrix.
Key developments for Hong Kong's power sector include:
- Hong Kong's energy dependence on China is growing, with the Hong Kong government agreeing to a deal by CLP Power Hong Kong to purchase natural gas from state-owned PetroChina's second east-west pipeline over the next two decades.
- ExxonMobil has hired Barclays to conduct an auction for part of its 60% stake in Castle Peak Power (CPP) after the oil and gas giant failed to make progress in selling its entire stake in CPP to power producers CLP Holdings and China Southern Power Grid. We believe that the sale has yet to be carried out because of a lack of growth potential in CPP. Having said that, we believe that China Southern and CLP could eventually turn out to be the buyers of CPP - as China Southern seemingly has the most to gain, compared with the other potential buyers.
- In December 2012, CLP Power announced the raise of its tariff by an average of 5.9% in 2013.That means power consumption a kilowatt-hour will go up from 98.7 cents to 104.5 cents, passing the onedollar mark. Hongkong Electric, which provides power to Hong Kong Island and Lamma, has also increased power prices by 2.9% - for a kWh unit cost of 134.9 cents.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- CLP Power Hong Kong Limited - Power - Deals and Alliances Profile
- Global Power Survey 2013-2014 - Market Trends, Buyer Spend and Procurement Strategies in the Global Power Industry
- Global Power Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- Global Power Survey 2012-2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Power Industry
- Power Quarterly Deals Analysis: M&A and Investment Trends - Q1 2013
- Power Monthly Deal Analysis - February 2013: M&A and Investment Trends
- Power Monthly Deal Analysis - March 2013: M&A and Investment Trends
- Power Monthly Deal Analysis - January 2013: M&A and Investment Trends
- Industry Dynamics, Growth, Threats & Opportunities in the Power Industry - 2012-2013 : Survey Intelligence