HKSDF views on RE Forum 18-9-04

Introduction

The Council for Sustainable Development (CSD) hosted an open forum at Sports House, on 18 September 2004 covering the second Pilot Area (PA), namely Renewable Energy (RE).

The slides from most of the presentations are now available online: http://www.susdev.org.hk/en/reports.asp

Presentations

After introductions, by Mr Otto Poon (Convenor, Support Group on RE). The forum was sub-divided into three sessions, comprising the following:

Current Situation, Options and Overseas experience
Economic and Other Implications
Bringing RE to the grid, Regulation and Incentives

Each session was followed with a brief Q&A session, where presenter's would field questions from the participates (approx 150) and presenter's alike.

A diverse range of subject matter was covered, it was a busy morning. Some presentations dealt with RE basics (the ABC's), whilst others discussed international policy initiatives.

1. Current Situation, Options and Overseas experience

1a - Mr Joseph Chan (Electrical and Mechanical Services Department)

The end user cost, that is the cost per unit or dollars per KW/hr or the technically minded - is an important issue.

Although surveys by Friends of The Earth and other groups indicate that the Hong Kong public would happily to pay a premium for 'green' power , there is a big difference between survey and the reality of the actual electricity bill hitting the mailbox.

The presentations are seemingly still based on the initial consultation document, specifically that the utilities will be provider of RE. This is flawed thinking. It would be advantageous for the consumer, if the transmission and generation are separated, allowing the consumer to choose the provider. It is clear that the RE sub-committee are heavily biased in this regard.

To add insult to injury, the presentation from EMSD - Mr Chan repeated (again) that RE is expensive, citing HKD 2.2-4.1 per unit in his presentation. In response to a query raised by Mr John Herbert highlighting that CLP already use RE sources and still manage to charge only HKD 1.00 per unit, Mr Otto Poon replied stating that the cited figure was based on assessment by the Royal Institute of Engineers in the United Kingdom.

Obviously the real concern is that members of the public may take the ESMD figures (2.2 - 4.1) as cast in stone and therefore opt for a do nothing approach.

1b - Dr Yang Hong Xing (the Polytechnic University)

Q&A

Sustainable Energy

Another key point, yet again raised from the floor was Sustainable energy / Renewable Energy.

Considering our environment, the increasing cost of oil and other fossil fuels, the focus should be switched from straight-forward renewable to seeking sustainable energy.

It is clear, Hong Kong doesn't have any natural resources, other than a harbour, therefore all our fuel needs must be imported. Whilst critiques will always point to the lack of space for RE in Hong Kong, sustainable is what is really needed.

Biogas & Energy Conservation

Another query from floor, questioned why biomass (generation from animal waste and farmed material) and energy conservation had not been mentioned.

2. Economic and Other Implications

2a - Prof Francis Lui (the Hong Kong University of Science and Technology)

-- Not available online.

2b - Mr Gary Chang - Hongkong Electric Co Ltd (HEC)

Mr Chang presented the HEC pilot wind turbine for Lamma Island. Although his presentation is not, at the time of writing, available online, the Environmental Impact Assessment (EIA) can be downloaded (pdf format) here:

http://www.epd.gov.hk/eia/register/profile/latest/esb112.pdf

The EIA provides site location map and describes the environmental impact of the installation, only briefly covering the reduction in pollution.

Mr Chang stated that the capacity factor for the proposed wind turbine on Lamma Island has been assessed at 13%. During the Q&A session Mr Chang indicated he didn't want to debate the proposal, although the participates pointed out that the capacity factor was lower than the wind power economics dictate.

3. Bringing RE to the grid, Regulation and Incentives

3a - Dr Edward Lo (the Polytechnic University)

Dr Edward Lo presented RE usage / interconnection. Dr Lo highlighted that the supply rules (issued by the utility companies) preclude RE, and your digital clock and lantern are technically illegal installations. Needless to say, the supply rules need to be changed.

3b - Dr Gail Kendall (CLP Holdings)

Dr Gail Kendall presentation comprised a review of RE policy initiatives from around the world, citing Renewable Energy -- Market and Policy Trends in IEA Countries 2004 published by the International Energy Agency (IEA).

Dr Kendall's presentation , at the time of writing, is not online, however a few key points:

3b (i) Legislative Mix

Incentives and policies are proven drivers for the development of RE overseas. A single policy does little to promote development, finding the right mix is the key to success.

A combination of policies, incentives, rebates, tax breaks, carbon taxes, etc. will be far more successful in the long term than one piece of Legislation.

3b (ii) Lowest Common Denominator

Experience from other countries clearly shows when RE targets are set, without defining the source is a recipe for disaster.

Most countries, for a number of reasons, will miss their declared RE target. During the critical period of time leading up to the target deadline, a last minute scramble ensues, a last chance to close the gap been reality and target - Parkinson's Law at work again.

Therefore, without a policy defining the nature of the source, the players fall back to the lowest common denominator, installing the cheapest and fastest to implement with little regard to other factors.

If you think about it, for a just minute, it is plain commonsense. RE policy must define what is required, otherwise uncontrolled RE development will follow with little time for thought. RE targets must be adequately defined to prevent implementers following the lowest common denominator.