Power Firms To Pay Up To HK$5 For Clean Energy

The government is proposing that the territory's two power companies buy renewable energy generated by small private producers at HK$5 per unit.

Smaller producers are those that use a solar panel system of less than 10 kilowatts – like those generally used on the rooftops of village houses.

For a bigger system of between 10 and 200 kilowatts – such as those installed at the Airport Police Station and the Wanchai Tower – the proposed tariff will be HK$4.

For electricity produced using a bigger system that produces up to 1 megawatts, like the one at the Electrical and Mechanical Services Department headquarters in Kowloon Bay, the tariff will be HK$3 for a unit.

The proposed levels are kept higher than what the power companies charge for their electricity to encourage private investment in renewable energy.

Once a producer links up to the grid, the tariff level will remain the same until 2033. But the rates will be reviewed every year, which means those joining the grid in subsequent years may be paid a different amount.

The government estimates that it will take around 10 years for producers to recover the installation and maintenance costs of their solar or wind systems.

It also assured consumers that there wouldn't be a surge in their electricity bills as the power companies would offset some of the additional costs by selling “renewable energy certificates” to businesses or members of the public, who would pay for the certificates to neutralise their own carbon emissions and meet corporate social responsibility commitments.

The proposal will be discussed at Legco's Environmental Affairs Panel next Monday.