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2015 ANNUAL REPORT |
9
OPERATION REVIEW
being reduced across the board in 2016. From 2008 to 2016,
net tariffs have only been marginally increased by 4.7%
compared to overall inflation of about 27% over the same
period.
The prevailing regulatory regime provides a perfect balance
whereby consumers enjoy both quality and value for money
services and investors receive a rate of return conducive to
making long-term investments in electricity infrastructure.
As such we believe that change for the sake of change
is counterproductive and the SCA should continue in its
present form.
The results of the consultation as published by the
government show widespread support for our position
that the current SCA, with its 9.99% rate of return and
10 year duration, offers an effective and stable platform
for innovation and reliability. Respondents saw the power
supply in Hong Kong as affordable and cautioned against the
introduction of competition just for the sake of bringing in
choice.
GENERATING PERFORMANCE OF A HIGH
STANDARD
Lamma Power Station (LPS), with an installed capacity of
3,737 MW, forms the heart of our generation activities.
LPS operates eight coal-fired units, two gas-fired combined
cycle units, five oil-fired open cycle gas turbine units, one
commercial-scale wind turbine, and a solar power system
consisting of 8,662 thin-film photovoltaic panels.
Following formal approval by the government, we began
construction of a new gas-fired generating unit (L10) at LPS
in January 2016. Tendering for the unit was completed as
planned and the contract was awarded in November 2015.
Preliminary engineering design layouts and piling designs
have been confirmed and piling will commence in early
2016 with a target of commissioning in 2020. The new unit
will enhance our natural gas-fired capacity, helping meet
stringent new emissions and carbon intensity targets.
The L2 coal-fired unit was taken offline during the fourth
quarter of 2015 for six months to replace aged boiler
parts and optimise the combustion system for extension
of its service life. Work on the main generation unit will be
completed during the second quarter of 2016.
During the year, work progressed on a 3-year refurbishment
project to modernise LPS various water supply systems,
which are up to 30 years old. Phase 1, involving the
replacement of fresh water pipes at the water reservoir and
slope area, was completed in December 2015.
Systematic equipment inspection and maintenance ensure supply
reliability.
Lamma Winds has generated over 8 million units of green energy
since its commissioning.