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CLP Targets Guangdong In Energy-Saving Push

Denise Tsang – SCMP – Updated on Aug 06, 2008

CLP Holdings, the larger of Hong Kong’s two electricity suppliers, has plunged into the rapidly growing energy-saving services business in Guangdong, which is grappling with persistent power shortages and stubbornly high fuel prices.

The utility, which exports electricity to the energy-hungry province, sees growing demand for using power more efficiently and economically, according to CLP Energy Services & Technology (Shenzhen) chairman Chow Tang-fai.

However, he conceded that promoting more efficient use of energy was an arduous task, given the exodus of factories in Guangdong and the costs involved.

“Saving energy does not necessarily involve exponential investment. The effort can be as little as stopping waste and recycling heat and air,” said Mr Chow, who launched the service yesterday. “Most companies in Guangdong have a high level of awareness about energy savings, but the problem is a lack of know-how.”

Citing the findings of a CLP survey of about 600 Hong Kong companies operating across the border, he said businesses on average could save at least 10 per cent of their utility costs.

The need for more efficient use of power is growing as the state seeks sustainable growth by tightening environmental requirements.

The central government is trying to eliminate industries that consume too much energy, pollute the environment and are resource-intensive. It also has set ambitious targets for reducing energy use and emissions.

The programme calls for cutting energy consumption per unit of gross domestic product by 4 per cent annually from 2006 to 2010. But energy demand remained so strong that one in three provinces or municipalities failed to meet the target last year, the National Bureau of Statistics revealed last month.

Industrialised Guangdong had only a 3.15 per cent decrease last year.

Mr Chow said every user could make better use of energy by improving its lighting, motor-driven and heating systems, as well as recovering waste heat.

He cited the case of a Hong Kong-owned garment producer in Guangdong with 5,000 workers, which he did not identify. The firm saved 5 million yuan (HK$5.7 million) or 10 per cent of its total utility expenses after adopting about 20 initiatives to better utilise electricity, he said.

Most of the initiatives did not involve new investments and those that did were expected to recoup their costs in three years.

However, some analysts saw stumbling blocks in promoting energy-saving initiatives. About 20,000 of 65,000 Hong Kong-owned processing factories were expected to go bust this year, victims of rising raw material and fuel costs, power shortages, a stronger yuan and stringent environmental requirements.

Analysts said insufficient funding support and a lack of vision about sustainable development were key challenges.

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