The Government has approved the construction of a new gas-fired generating unit by the Hongkong Electric Company to meet the target of increasing local electricity generation by natural gas to around 50% of the total fuel mix from 2020.
The new gas unit, a combined cycle gas turbine with an installed capacity of 380MW, will be installed at the Lamma Power Station Extension, the Government announced today.
The total estimated capital expenditure of the new gas unit is about $4.1 billion, with $568 million to be incurred over the remaining period of the existing Scheme of Control Agreement, which will expire at the end of 2018.
As a result, the total capital expenditure as approved in the company’s 2014-18 Development Plan will increase from $13 billion to $13.6 billion.
The impact on the Hongkong Electric's tariff will be about 0.2% for 2017 and 0.3% for 2018.
