The Executive Council has approved the construction of a new gas-fired generating unit by CLP Power at Black Point Power Station to implement the 2020 Fuel Mix, the Government announced today.
The unit's total estimated capital expenditure is $5.547 billion, of which $3.575 billion will be incurred over the remaining period of the existing Scheme of Control Agreement, which will expire on September 30, 2018.
After offsetting by adjustments and savings from other capital projects, the total estimated capital expenditure as approved in CLP's 2014-18 Development Plan will increase from $34.1 billion to $37.1 billion.
The impact on CLP's tariff will be about 0.2% for next year and 0.4% for the year after.
The full tariff impacts beyond that will depend on critical factors, including the permitted rate of return in the next scheme, operating costs, sales volume, fuel prices and future movements in the Tariff Stabilisation Fund and the Fuel Clause Recovery Account.
The Government said it will make great efforts to balance achieving the emission cap target and relieving the impact of the electricity tariff on the public.
With less reliance on coal-fired generation, the emission of air pollutants from coal-fired generation can be reduced significantly, it added.
