Hong Kong's CLP Holdings expands its non-carbon portfolio

It is exploring opportunities in the Greater Bay Area and India.

Hong Kong’s CLP Holdings is expanding its non-carbon portfolio as it continues to contribute to growth with earnings from its Daya Bay and Yangjiang nuclear plants whilst renewable energy assets contributed improved earnings in Mainland China. Overall operating earnings in China gained 5.3% to $295.31b (HK$2.3b).

The group continues to explore opportunities in the Greater Bay Area (Guangdong-HK-Macau), OCBC Investment Research wrote in a note. In India, CLP has bid successfully for a 250MW wind project in Gujarat, which will be the biggest wind farm across the group once commissioned in 2021.

CLP also updated it is on track to play its part to meet HK’s goal of increasing the amount of gas generated electricity to ~50% by 2020.

“Progress against its decarbonisation targets will be reviewed at least every five years as technologies improve, and compared against the goals of the Paris climate change agreement. Given that ~20% of revenues are derived from coal-fired generation, this revenue stream will need to be replaced over time through investment in renewable generation opportunities,” OCBC Investment Research wrote.

CLP pledged to halt investments in coal-fired generation assets and phase out its existing coal-fired assets by 2050. In December 2019, it exited two legacy coal developments in Vietnam and said it is open to opportunities in renewable generation.