HK Electric Investments is the first fixed single investment trust listed in Hong Kong with a focus on the power industry. Our principal operating subsidiary, The Hongkong Electric Company, Limited (HK Electric), commenced operations in 1890 and is one of the longest-established utility companies in the world.
Over our long history, we have consistently supported Hong Kong's economic journey by offering safe, reliable and affordable electricity while minimising the impact of our operations on the environment as we strive to deliver sustainable growth in long-term value to our investors.
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Underpinned by its core value of "Pursuit of Excellence", HK Electric is committed to delivering excellent services and supply reliability to our customers. We have been providing a world-class supply reliability of over 99.999% since 1997 and all our service standards are achieved or even surpassed every year.
To satisfy the aspirations from the community, and in support of Government’s energy and environmental policy objectives, HK Electric has launched a suite of "Smart Power Services".
HK Electric is one of the longest-established power companies in the world. The Company has a world-class record of providing a highly reliable electricity supply to Hong Kong and Lamma islands at a reasonable and affordable price.
HK Electric Investments is committed to meeting the long-term energy needs and supporting the sustainable development of the community we serve. To do this, we focus not only on powering Hong Kong with a world-class electricity supply, but also on the way we deliver it and the impacts it has on the environment.
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Cheung Kong Infrastructure Holdings Limited ("CKI") and Power Assets Holdings Limited ("Power Assets") jointly announced today that they are expanding into the renewable energy power transmission in Australia by investing A$33.6 million (HK$268.1 million) in a power transmission link in Victoria.
A new 50/50 joint venture formed by the two companies called Transmission Operations Australia ("TOA") will construct, own and operate the transmission link which transports renewable energy from the wind turbines at the 130 megawatt Mt. Mercer Wind Farm to Victoria's power grid.
On completion, the high voltage network will comprise 21km of overhead power line, two transformers, as well as a terminal station. Construction of the network is expected to begin in October 2012, and completion is scheduled for November 2013.
25-Year Off-Take Agreement Guarantees Stable Returns
As part of the arrangement, TOA has signed a 25-year off-take agreement with the owner of the wind farm, Mt Mercer Windfarm Pty Ltd ("MMW"). This contract may be extended for up to a further 25 years at the option of MMW.
Currently, CKI and Power Assets have a strong portfolio of power distribution business in Australia. This comprises SA Power Networks (previously called ETSA Utilities), the primary electricity distributor in the State of South Australia; CitiPower and Powercor, two of the five electricity distributors in Victoria.
Extension of Energy Achievements
Mr. H L Kam, Group Managing Director of CKI said, "We have been very pleased with our investments in Australia's power distribution industry. This transaction marks an extension of the achievements we have made in the country's energy sector. The new venture will be a springboard for CKI and Power Assets to get into Australia's growing electricity transmission markets. It will enrich our portfolio and widen our energy experience, further strengthening our capabilities for future growth.”
According to Australian Government Department of Climate Change and Energy Efficiency's Renewable Energy Target (RET) scheme, the Australian Government is committed to ensure that the equivalent of at least 20 per cent of Australia's electricity comes from renewable sources by 2020.
It is expected that the RET scheme will lead to a growth in wind generation and an increase in demand for new connecting lines and terminal stations for transmission.
Poised to Capture Growing Renewable Energy Industry
"We hope that the Mt Mercer Wind Farm transmission project in Victoria is the first of many transmission projects of our new company, TOA. We look forward to capturing more opportunities in the burgeoning renewable energy industry in the country," said Mr. K S Tso, Group Managing Director of Power Assets, adding that the investment would also generate a stable, long-term income secured by a long-term contract.
Second Investment This Year
The new electricity transmission venture marks CKI and Power Assets' second energy investment in the past two months, closely following the announced acquisition of UK's Wales & West Utilities for GBP 1.957 billion (approximately HK$23.5 billion) in July.