CLP Technology Roadmap 2010

CLP Technology Roadmap 2

CLP Technology Roadmap3 CLP Technology Roadmap 4

About CLPCLP is one of the largest investor-owned power businesses in Asia.

In Hong Kong, we operate a vertically integrated electricity generating, transmission and distribution business

serving 80% of Hong Kong’s population. We also have interests in the power sector throughout the Asia-Pacific

region. We are one of the largest external investors in the electricity industries in the Chinese Mainland, Australia,

India, Southeast Asia and Taiwan.

Contents CEO Message

CLP Technology Roadmap

Renewable Energy

Nuclear

Natural Gas

Advanced Coal

Carbon Capture and Storage

Energy Efficiency

Low-Carbon Technology & CLP

The Way Forward

Glossary & Other Related Publications

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The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life.

CLP’s Climate Vision 2050 Targets

CLP is among the first electricity companies in the world to respond to the threat of global climate change by setting long-term targets for deep reductions in the carbon intensity of our entire portfolio.

and hydro-electric generation, we have made use of well-proven and widely applied technologies. In other areas, such as nuclear

power and combined cycle gas-fired generation, CLP has been amongst the earliest adopters of the technology in Asia. Others still,

such as carbon capture and storage are not yet developed, proven and cost-effective to an extent that permits their commercial

application.

This latest update of the CLP Technology Roadmap, as the name indicates, is a guide to the experience we have already gained along

our low-carbon journey and to the road which lies ahead. A number of points stand out on the landscape. Mature renewable energy

sources such as wind and hydro-electric now enjoy widespread application. Amongst “newer” renewables, solar is moving towards

commercial availability whereas the exploitation of other renewable sources such as tidal, wave and geothermal remains

challenging. Amongst baseload generation technologies, coal remains dominant in Asia, but with a trend towards more efficient

larger units employing supercritical and ultra-supercritical technologies. Gas and nuclear are playing an increasing role and may

serve as bridging technologies to provide large-scale power generation until carbon capture and storage, or some other clean fossil-

fuel generation technology, comes on stream beyond this current decade.

This revised Technology Roadmap places greater emphasis on the manner in which we consume electricity, rather than merely how

it is produced. From utility efficiency, such as smart grid and high voltage direct current (HVDC) transmission through to end-use

efficiency, including fuel cells and electric vehicles, we describe how new technologies are becoming available to enable major

advances in the use of electricity, without adverse impact on our social and economic well-being.

The Technology Roadmap points to a future where electricity will be generated and used in a more sustainable way – avoiding the

risk of catastrophic climate change, making better use of the earth’s resources and supporting an improving quality of life. With the

continuing backing of our stakeholders and the right policy support, CLP will play a full part in the deployment of clean technology

and the efficient use of energy – in the interests of a sustainable business and the sustainable development of the societies we serve.

Andrew Brandler Chief Executive OfficerDecember 2010

CEO Message

0.6 kg CO2 /kWhand

30% non-carbon-emitting generating

capacity

0.8 kg CO2 /kWh 0.45 kg CO2 /kWh

0.2 kg CO2 /kWh

In November 2008, I introduced CLP’s first Technology Roadmap, explaining our views on the technologies that we intend to use to

move our portfolio away from predominantly fossil-fuel power generation towards low-carbon electricity supply.

Two years on, our commitment to reducing the carbon footprint of our business remains unchanged. In line with our Climate Vision

2050, we have started to reduce the carbon emissions intensity of our generating fleet. Renewable energy sources now represent

over 15% of our total generating capacity, compared to only 1.3% as recently as 2005.

The start of our journey to a low-carbon energy future reflects the availability of technologies to replace the conventional coal-fired

power plant of earlier years. We have already adopted technologies such as supercritical coal-fired plants, wind turbines and solar

panels to increase our electricity output, without a corresponding rise in carbon and other emissions. In areas such as wind turbines


CLP Technology Roadmap

In developing this Technology Roadmap, CLP has drawn upon authoritative information sources and knowledge bases including

the International Energy Agency, Energy Information Administration (part of the United States Department of Energy), World

Energy Council, International Atomic Energy Agency, Bloomberg New Energy Finance and the international consultancy

Navigant Consulting.

Although some technologies are mature and many are emerging rapidly, large-scale uptake must coincide with appropriate

government policies that can provide clear targets and sustainable incentives for businesses. As we search for opportunities to

apply these technologies in different business environments, we will continue to engage and work with various stakeholders to

establish the most suitable approach and business model to fit different needs.

The CLP Technology Roadmap presents the key low-carbon technologies – both existing and new – that we will use to transform our portfolio to a low-carbon supply and meet the targets set out in CLP’s Climate Vision 2050.

In 2008, CLP published the inaugural version of this Technology Roadmap in support of our Climate Vision 2050 announced a year

earlier. With rapid developments in technology and a set of revised targets set for 2020, this new version provides an update of key

technologies that we will continue to explore and incorporate in order to de-carbonize our generation portfolio.

Low-carbon technologies inevitably demand a higher cost and new knowledge be acquired to enable us to select the most

appropriate combinations and pace of implementation. The technologies covered in this roadmap range from commercially

competitive nuclear power and combined cycle gas plants, to proven hydro, wind and the rapidly emerging solar power that

nevertheless still require sustainable policy support to level the playing field, to large-scale demonstration projects, such as smart

grid, electric vehicles, and late stage developments such as hot dry rock geothermal and gasification technologies.

In this roadmap, we will explain how different low-carbon technologies work, their stage of development, cost status and market

potential. We will also present in the inserts what CLP has accomplished in terms of incorporating these technologies into our

assets. Our portfolio now includes wind, hydro, solar, nuclear, advanced coal, biomass and different efficiency related low-carbon

technologies.

Electricity generated by low-carbon technologies, which have low or zero CO2 emissions intensity, usually have higher levelised cost than

electricity from conventional generation.

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*Notes:IGCC = Integrated Gasification Combined CycleNGCC = Natural Gas Combined CycleCCS = Carbon Capture and Storage

Emissions Intensity and Levelised Cost of Power Generation Technologies

CLP is transforming our portfolio through low-carbon technologies presented in the Roadmap to achieve the aggressive emissions intensity reduction targets set out in our Climate Vision 2050.

Source: IEA World Energy Outlook 2010, Navigant Consulting 2010, Bloomberg New Energy Finance 2010


Market: In 2009, according to the IEA, renewable energy

contributed to about 20% of the world’s annual electricity

power generation, of which 16% was hydropower. By 2050,

renewables will likely reach 22-48%.

What is the outlook?Performance: Hydropower, biomass and conventional

geothermal power are technologically mature. Their

improvements in cost and performance are likely to be

incremental. Solar and wind, on the other hand, typically

have lower capacity factors as a result of the intermittent

nature of the resource, e.g. the sun does not always shine

and the wind does not always blow. The level of integration

of these intermittent renewables will thus be system

dependent. Energy storage and smart grid technologies,

however are being developed to help alleviate the

intermittency issue but their costs will remain high in the

short term.

applications, now boasts contracted projects in the hundreds

of megawatts as well. Concentrated PV technologies are

in demonstration stage. Other technologies such as wave

power and ocean thermal energy conversion and hot dry rock

geothermal technologies are in development stage.

Cost: Large-scale renewable energy generally costs more

than conventional fossil-fuel power. Hydropower, landfill gas,

biomass co-firing, and onshore wind power are commercially

viable in places where there are exceptionally good natural

resources or government policies to promote their use. In

recent years, the cost of PV has declined steadily at a rate

approximately 4-7% per year due to manufacturing economies

of scale and technology efficiency and performance

improvements.

How does it help the climate?Renewable energy technologies generate power with no net

carbon emissions (no greenhouse gas emissions or carbon

neutral). Using renewable energy instead of fossil fuels avoids

emissions that would otherwise be produced to meet the

same electricity needs.

What is the status?Technology: Hydropower, biomass combustion, wind

turbines, flat plate solar PV and CSP systems are commercially

available, but other renewable energy technologies are in

various stages of development. The technologies also vary

widely in their application size. Hydropower facilities can be

several hundred megawatts (MW, 106 watts) in size. Flat plate

solar PV, once used mostly for residential and commercial

RenewableEnergy Deployment: Hydropower will continue to be the

largest renewable energy source, though its market share

may slowly decline over time as fewer resources remain

untapped and licensing and permitting issues continue to

hinder large-scale development. Wind and solar energy,

though accounting for a small share today, are beginning

to gain in market share. Deployment of non-hydro

renewables continue to be driven largely by government

policies such as feed-in tariffs, mandatory renewable

portfolio standards, tax concessions, cash grants, financing

options made available by local governments and

production incentives.

Renewable energy is derived from natural energy resources such as wind, sunlight, underground heat, biomass, and the flow of rivers and seas. Renewable energy technologies include wind turbines, flat plate solar photovoltaics (PV), concentrating PV (CPV), concentrating solar thermal power (CSP), biomass direct combustion, hydro turbines and geothermal systems.


EconomicsOnshore wind power can be competitive with conventional

power options if there are strong and consistent wind

resources. Policy mechanisms such as feed-in tariffs have

promoted significant investment in wind power and have had

the result of driving down the costs and increasing the size

of wind turbines, and nurturing an effective supply chain to

support large-scale deployment of wind energy. Offshore wind,

which to date has mostly been deployed in Europe, is more

expensive to build and operate than onshore wind, but has

good potential in the future owing to its higher capacity factor.

Market PotentialWind power generation is undergoing rapid growth, driven

largely by policy support. In China and India, wind power

is expected to continue to grow substantially as electricity

demand increases and local manufacturing capability

increases. However, some developments may be limited by

transmission constraints and/or local requirements (e.g. wildlife

or aviation considerations). Wind energy supplied about 1.5% of

global electricity production in 2009 but could supply up to 12%

by 2050.

How It WorksWind turbines transform the horizontal motion of air into

rotational torque which drives a generator to produce

electricity. Different turbine designs have been used, including

vertical or horizontal axis machines, and single to multiple

blades. The most common wind turbines use three blades

around a horizontal axis. The nacelle, which houses the

generator, turns so that the turbine will always face into the

maximum wind direction. Advances in wind and aeronautic

technologies have led to high-tech composite blade materials

to increase endurance and reduce weight; variable pitch blades

Solar EnergyFunctionTo convert sunlight into electricity using either photovoltaic or concentrated solar thermal methods

and variable rotational speeds to maximise energy output;

improvements in the gearing and power electronics to raise

efficiency and increasing the hub height to higher wind speeds.

The energy output of a wind turbine is proportional to the

swept area of the blades. Doubling the length of the blade

increases the swept area by a factor of four. The dependency

on wind speed is even stronger – doubling the wind speed

increases the output by a factor of eight. In addition, remote

sensing technologies (e.g. satellite imaging) and sophisticated

computer simulation models (e.g. computational fluid dynamic)

have also enabled better wind resource assessments, forecasts

and wind farm designs.

Wind PowerFunctionTo convert wind resources into mechanical energy to generate electricity

EconomicsAlthough flat plate photovoltaic (PV) is still more expensive

than most other renewable energy technologies, the price of

solar electricity from PV facilities has seen a steady decline

in recent years. In the short term, the economics of PV will

remain heavily dependent on the availability of myriad

government incentives. For concentrated solar thermal power

(CSP), parabolic trough currently has the best economics

among different CSP technologies but its development is

limited to regions with plenty of direct sunlight. Concentrated

PV (CPV) is still in demonstration phase.

Market PotentialThe market for PV is poised for significant growth over the

next five years as total installed system costs continue to

decline at about 4-7% per year and more utility companies

and consumers accept the technology as a viable power

option. In addition, PV systems can be widely deployed in

areas with both direct and diffuse sunlight. Development of

CSP and CPV is however limited to regions with strong solar

resources, i.e. with plenty of direct sunlight. Despite major

CSP announcements that have been made around the world,

project finance, cost uncertainty, and access to transmission

may still be the major hurdles for CSP.

How It WorksPV converts incident solar radiation into electricity. PV cells

made of either crystalline silicon or thin film materials are

assembled into modules and panels. Panels can be mounted

on a roof or the ground. An inverter box to convert DC power

from the PV panels to AC power to the load/grid completes the

system. Other balance-of-system items such as the optional

tracking devices could increase efficiency and power output.

CSP uses a parabolic trough / dish collector, heliostat mirror

or Fresnel reflector to concentrate solar energy on a thermal

receiver to heat a working fluid such as synthetic oil or

molten salt to temperatures as high as 1,000°C. The steam

is then generated through heat exchange, or the working

fluid directly drives a steam turbine or a Stirling engine for

electricity generation.

CPV uses mirrors or lenses to focus sunlight on high-efficiency

PV solar cells. The concentrated sunlight makes it worth the

usage of more expensive, efficient and higher complexity

PV cells, such as multi-junction cells using three different

material compositions, with conversion efficiencies often

twice as high as the efficiencies of conventional solar panels.

Main components of a wind turbine


EconomicsAt good resource sites, conventional geothermal

(hydrothermal) can be commercially viable. Moreover, the

geothermal energy from the earth is generally constant thus

making the output of such a plant well suited for baseload

applications.

Market PotentialCurrently, there are roughly 11 gigawatts (GW, 109 watts) of

hydrothermal installed capacity in 24 countries, which is 20%

higher than in 2005. While flash steam and dry steam plants

are more mature than binary cycles, some industry experts

are pointing to enhanced geothermal systems (EGS) as a key

technology to watch since it can tap deeper into geothermal

resources worldwide.

How It WorksConventional geothermal systems draw naturally occurring

hot water or steam from wells which are drilled into an

underground reservoir of porous or fractured rock. There are

three major types of geothermal power cycle currently in use,

namely flash steam, dry steam and binary cycles. Of these, the

flash steam cycle is the most commonly used.

EGS also known as hot dry rock, enable the utilisation of

geothermal heat at depths of 4,000 metres or more. In a

system of parallel wells, water from the surface is forced into a

well and enters the fractured rock. Through the fissures, water

is heated and then extracted at a much higher temperature

from another well. The acquired heat content is then extracted

to drive a turbine to generate electricity.

Geothermal EnergyFunctionTo convert the earth’s underground heat to generate electricity

Enhanced geothermal system (hot dry rock geothermal)

EconomicsCurrent costs of marine energy technologies are higher

than that of other renewables because most marine energy

technologies are still in early-stages of development.

Although tidal barrage is a mature technology, it has only

been deployed in a few places around the world. Current

development is mainly supported by government incentives

in places with good marine energy resources.

Market PotentialAlthough there are abundant resource potentials globally,

considerable efforts are still needed to map out commercially

viable sites with detailed marine resources, landscape and

operating environment to support deployment of marine

energy technologies. Currently, the reliability and survivability

of marine devices in the harsh sea environment remain a

challenge on large-scale deployment. Uncertainties on the

ecological impact of large-scale deployment could also be a

show stopper in some cases.

How It WorksMarine technologies can take advantage of the potential,

kinetic, and thermal energy available in the ocean to generate

electricity. Tidal barrage systems make use of the water height

difference between high and low tides. A dam or barrage

structure is constructed across a tidal bay or estuary to

collect water during high tide. Then during low tide the water

is released through turbines to generate electricity. Marine

current devices capture the kinetic energy from natural

ocean currents. The movement of ocean currents can power

mechanically-driven devices to generate electricity.

Wave energy devices harness the potential energy created

from the up and down motion of waves. This potential energy

can be converted into power through mechanical means such

as pistons and hydraulic pumps.

Ocean thermal energy conversion (OTEC) devices make use of

the temperature difference between warm surface water and

cold deep ocean water. Warm surface water can be used to

vaporise a fluid to drive a turbine to generate electricity. The

cold water from the deep ocean is then used to condense the

fluid for reuse. Salinity gradient technologies capture energy

as water flows due to osmotic pressure across the boundary

between freshwater and saltwater. The most promising

methods use semi-permeable membranes between the

freshwater and saltwater.

MarineFunctionTo harness energy from the ocean to generate electricity


EconomicsNuclear power can be cost-competitive with fossil-fuel

generation. Because operation and fuel costs are at the low

end of the cost spectrum of generation technologies, nuclear

plants are most suitable as baseload power suppliers. The cost

of electricity from Generation III plants is expected to fall in

the same range as conventional fossil power, once the market

reaches large-scale production.

Market PotentialMany countries with existing nuclear power programs have

plans to build new power reactors beyond those now under

construction. The installed capacity is expected to be between

511 GW and 807 GW in 2030.

How It WorksNuclear fuel is formed as a uranium oxide into pellets and

encased in long slender rods. Fission is initiated by neutron

bombardment, splitting the nuclei of individual uranium

atoms into different elements, and releasing more neutrons.

The continuous cycle is called a chain reaction. In most

reactors, water serves as both a moderator and a coolant. As

a moderator, water “slows down” the high energy neutrons

released during fission until they are at the right energy

level to be captured by another nucleus and trigger another

fission reaction. As a coolant, water flows through the reactor,

carrying with it the heat absorbed from nuclear processes

in the reactor. The heat is used to generate steam to drive a

turbine-generator to produce electricity.

Generation III reactors are an evolution of Generation II

reactors, involving upgrades in fuel and thermal efficiency,

safety, operational flexibility, and reactor life. Several designs

with Generation III technologies are available in the market,

such as European Pressurised Water Reactors, Advanced

Boiling Water Reactors, Advanced Heavy Water-Cooled

Reactors etc. Some Generation III reactors incorporate passive

safety features which allow the reactors to shut down safely

even if their emergency systems were to fail, by using natural

forces such as convection, gravity and the natural response

of materials to high temperatures to slow or stop the nuclear

fission reaction.

Nuclear power is generated from uranium through controlled nuclear fission reaction. The heat produced from the fission reaction is used to generate electricity.

How does it help the climate?Nuclear power can produce a large quantity of electricity

with virtually no greenhouse gas emissions. For developed

countries, nuclear power offers a bridging option towards a

low-carbon generation portfolio. For developing countries,

nuclear power offers a proven low-carbon solution to meet

the rapid growth in demand for energy.

What is the status?Technology: Nuclear technologies may be grouped into

four generations. Generation I were prototype reactors which

are now obsolete. Generation II reactors are the most mature

and currently most common in operation. Evolutionary

improvements have led to Generation III reactors with

improved safety features. They are currently in commercial

development and deployment. Generation IV designs, with

some under trial, are currently under active research and

development.

Cost: Compared to fossil-fuel generation, nuclear power

has higher capital costs, longer project development time

but lower operating costs. The higher capital costs are due

to multiple factors such as sophisticated safety and back-

up plant operating and control systems, and regulatory

requirements. Plant decommissioning and waste disposal are

required as a safety and regulatory necessity and their costs

are managed under the overall cost structure.

Market: At the end of 2009, nuclear power contributes

about 14% of the world’s annual electricity power generation.

There are 437 nuclear power reactors in operation worldwide,

with a total capacity of 371 GW, and 56 new power reactors

under construction in 14 countries. Of these, China alone has

20 units committed.

Nuclear

What is the outlook?Performance: Most of the operational reactors around

the world are of Generation II technologies and the major

technology suppliers include the US, France, Japan, Canada

and Russia. A number of Generation III reactors have been

operating in Japan. More of these units, aiming at optimising

safety, reliability and operational economics are under

construction in China and in Europe, such as Westinghouse’s

AP1000 model and Areva’s European Pressurised Water

Reactor.

Deployment: The potential for global growth in

nuclear power is significant, due to the increasing demand

for affordable and reliable low emission generation. In

many respects, the deployment of nuclear technologies is

dependent on the institutional governing structure that

exists (or is being built) with respect to regulation, licensing,

construction, technical capability and waste management.

Such national institutions are necessarily the pre-requisite

for a country freshly embarked on nuclear deployment that

requires international support and co-operation. Local and

political acceptance to siting nuclear power stations is also a

factor that influences future deployment.

Nuclear–Generation IIIFunctionTo generate electricity using heat produced by nuclear fission reaction with the inclusion of passive safety control features


EconomicsNatural gas prices vary internationally, but the cost of

electricity from a combined cycle gas turbine is generally

higher compared to conventional coal power plants. Although

the cost of a gas plant is less than that of a coal plant,

the price of gas relative to coal generally outweighs this

advantage. An open-cycle gas plant requires even less capital

than combined cycle, but uses more gas for the same amount

of electricity. For occasional peaking power, open-cycle may

be cheaper, whereas for baseload with high utilisation hours,

CCGT may be more cost effective.

Market Potential CCGT transformed the US and some other markets in the

1990s, displacing coal as the fuel of choice during a period of

low gas prices. As gas prices have risen in recent years, coal

has once again become the least cost option. Nevertheless,

world gas generation capacity continues to grow due to its

low capital cost and low carbon intensity. In addition, the

operational flexibility of CCGT could also be used to support

intermittent renewable generation.

How It WorksA CCGT plant integrates two power generation cycles. The

higher temperature cycle is driven by a gas turbine where

combustion takes place. The other cycle is driven by a steam

turbine, which can be on the same axis as the gas turbine and

drive the same generator.

In between the two cycles, heat recovery steam generators

capture the waste heat from the gas turbine exhaust and

produce steam to drive the steam cycle. The gas turbine

typically produces about two thirds of the total output, with

the remainder being generated by the steam cycle.

Integration of the two power cycles operating in different

temperature ranges raises overall efficiency. New CCGT plants

can have efficiency of 50% to 60%, relative to open-cycle

plants in the 30% to 45% range, and the best new coal plants in

the 40% to 50% range.

Natural gas is a gaseous fossil fuel consisting primarily of methane. It is the cleanest fossil fuel used for power generation.

How does it help the climate?Electricity generation with natural gas produces about

one-third to one-half as much carbon dioxide (CO2) as coal

for the same amount of electricity. Owing to the flexibility of

gas turbines, it can also be a compliment to the intermittent

renewable energy such as wind and solar when the resources

suddenly die down or become unavailable.

What is the status?Technology: Open-cycle gas turbine plant efficiencies are

in the range of 30% to 40%. With advanced designs involving

recuperation and intercooling, the efficiency can achieve

45% and higher. Combined cycle gas turbines (CCGT) are

technologically mature with high overall energy conversion

efficiency, ranging from 35% to 55%. Advanced combined

cycle generators have potential to achieve efficiencies up to

and exceeding 60%. In applications where waste heat can be

utilised, combined heat and power (CHP) can achieve up to

90% energy efficiency.

Cost: Natural gas plants benefit from lower capital costs

and shorter construction times relative to conventional

coal. However, natural gas prices can be quite volatile, and

it is generally more expensive than coal but less expensive

than most renewables. Recent developments on shale gas

technologies (e.g. horizontal drilling) will make it an attractive

option where resources are accessible.

Market: Natural gas currently contributes to about 21%

of the world’s annual electricity power generation. The

development of an international market for liquefied

natural gas (LNG) has brought additional gas within reach

of more countries. Technological advancements have

significantly increased the amount of shale gas available,

particularly in the US. These discoveries, and lower demand,

Natural Gas

Combined Cycle Gas TurbineFunctionTo generate electricity from a gas turbine and use the waste heat to make steam to generate additional electricity from a steam turbine

have significantly reduced natural gas prices since their peak

in 2008 and have the potential to lower international LNG

prices in the medium to long term. Natural gas is well suited to

small CHP applications, where overall energy efficiency can be

very high.

What is the outlook?Performance: Gas turbines are mature and commercially

competitive technologies. Natural gas combined cycle plants

are improving incrementally over time, and with recent

advances can now achieve net efficiencies of over 60%. New

applications of CHP will drive greater end-use efficiency

and more distributed generation. Hybrids combining small

gas turbines and high temperature fuel cells are under

development, with the aim of reaching even higher efficiency.

Deployment: Globally, natural gas power generation

could double by 2050. As the supply of natural gas diminishes

in areas of demand, there will be a growing need to transport

natural gas over long-distances from regions with available

resources. In the long-term, world supplies of conventional

gas and petroleum will decline, increasing their costs, and the

electricity sector will need to rely on other sources of energy.


EconomicsSupercritical coal plants have higher capital cost than

conventional subcritical pulverised coal plants, but make up

the difference in energy savings. Their market share in new-

build plants is rising rapidly. USC plants may follow a similar

course. IGCC and oxyfuel costs are significantly higher than

conventional plants, and would only be competitive if CCS

becomes available and necessary.

Market Potential Of the advanced coal technologies, the most promising

technologies for near term growth are supercritical and ultra-

supercritical technologies, particularly in China and India.

How It WorksSupercritical & Ultra-supercritical: Water vaporises at 100°C

under the standard atmospheric pressure of 101.3 kilopascal.

However, at a significantly higher temperature (374°C) and

pressure (220 times atmospheric pressure), water vaporises

without actually boiling. This is called the critical point.

Supercritical steam generators create such conditions by

raising the steam pressure and reheat temperatures to 540-

580°C. This results in higher energy conversion efficiencies

than conventional coal units. Ultra-supercritical steam

generators raise the temperature to 700°C or higher.

Advanced coal technologies include supercritical, ultra-supercritical (USC), integrated gasification combined cycle (IGCC) and further possible increases in steam temperatures and pressures in the future. These technologies may be combined with carbon capture and storage in the form of oxyfuel combustion, pre- or post-combustion capture to achieve substantial reductions in CO2 emissions.

AdvancedCoal Advanced Coal

Power Technology FunctionTo generate electricity from coal with higher efficiency and lower emission technologies

Market: Advanced coal technologies make up a small part

of today’s generating capacity. Currently, subcritical coal

plants still represent the majority of operating coal-fired

plants, but the supercritical coal plants are being developed

rapidly in new-build plants due to the high efficiencies. China

is currently the major world market for the construction of

new supercritical and ultra-supercritical power plants.

What is the outlook?Performance: Overall efficiency in coal power plants

has improved incrementally over the years, with each

successive generation displacing its predecessors. Despite

these improvements, coal remains the most greenhouse gas

intensive fuel in power generation. Given this, the potential

for market transformation in advanced coal is inherently

tied to national regulations pertaining to greenhouse gas

emissions. The success of IGCC and oxyfuel lies in their

compatibility with carbon capture and storage (CCS) should

CCS systems become economic (or simply mandated) in the

future. Higher efficiency is particularly important in CCS

systems because the CCS process entails a significant parasitic

loss of power output.

Deployment: Deployment of coal-based technologies

in developed countries is hampered by ongoing regulatory

uncertainty with respect to emission controls. Also the

currently depressed price of natural gas makes gas-fired

power plants more economically compelling. The deployment

of advanced coal will increase as demand grows for more

energy efficient plants and cleaner power. Due to their higher

efficiency, advanced coal options will be preferred for new

plants with carbon capture and storage.

How does it help the climate?Increased efficiency of advanced coal technologies reduces

the amount of coal consumed per unit of electricity generated

in comparison with conventional and subcritical coal

technologies. A lower consumption of coal reduces CO2

emissions.

What is the status?Technology: Supercritical technology is commercially

available and a proven technology. A number of countries

including the US, Russia, Japan, and the Chinese Mainland

have deployed these units. Ultra-supercritical technologies

have just entered the market in recent years, initially in

the EU countries and Japan. IGCC plants are under early

deployment with over 15 plants globally either in operation

or under planning. Oxyfuel combustion technologies are

currently being scaled up from pilot demonstrations to larger

demonstration projects.

Cost: Supercritical coal plants can be competitive with

conventional subcritical pulverised coal (PC) plants, with

higher efficiencies and lower operating costs, although its

capital cost is higher. Ultra-supercritical coal plants are still

under early commercial application and the cost is still high.

IGCC and oxyfuel are significantly more expensive than other

coal technologies.

Integrated Gasification Combined Cycle: IGCC plants use

a gasifier to convert coal to syngas (a gas mixture mainly

consisting of hydrogen and carbon monoxide), which drives

a combined cycle turbine. Once the syngas has been cleaned

to remove impurities, including CO2 , the syngas fuels a gas

turbine to produce electricity. Waste heat is recovered to drive

a steam turbine, completing the combined cycle system.

Oxyfuel Combustion: Coal oxyfuel combustion burns the coal

in a mixture of re-circulated flue gas and oxygen, rather than

in air. The water is easily separated, producing a stream of CO2

ready for capture and storage.


Carbon Capture and StorageFunctionTo capture CO2 from fossil-fuel power generation and store it underground

Other carbon capture technologies include adsorption on

solids such as activated carbon, selective filtration through

polymer or zeolite membranes, and cryogenic distillation in

which the CO2 is condensed.

After capture, the CO2 can be liquefied and injected under

pressure into geologic formations such as oil and gas

reservoirs, un-mineable coal beds and deep saline reservoirs.

This is regarded as permanent storage because these

formations have held oil or other contents for millions

of years. Other alternatives include converting CO2 into

carbonate compounds which could turn into construction

materials.

Carbon capture and storage (CCS) is a

process of separating CO2 and storing

it permanently rather than releasing it

into the atmosphere.

Carbon Captureand Storage

How does it help the climate?CCS technology can remove and store permanently up to

90% of the CO2 emissions normally generated by fossil-fuel

generation, particularly coal-fired plants.

What is the status?Technology: Most of the main elements needed for CCS

are proven and employed in various industrial activities

including enhanced oil recovery and chemical production.

However, it is still in the R&D and Demonstration phases when

it comes to power generation. Large-scale demonstration

projects are underway across the globe.

Cost: A power plant with CCS will always cost more than a

power plant without CCS. Without additional policies that put

a price on carbon or regulate carbon emissions, CCS will not

be economical. The estimated cost of CCS varies based on the

type of technology employed, but could increase cost up to

80% compared to conventional coal.

Market: The current market for CCS power generation

is limited to demonstration projects. Commitments and

investigation of additional projects continue. For example, the

EconomicsCurrently, the incremental cost for a power plant with CCS

is well above the cost for carbon emissions in international

markets. Deployment of CCS will depend on direct regulation

of emissions, direct subsidy of the plant itself, and/or a

significant rise in the market price of carbon.

Market Potential The market potential for CCS is determined by regional

storage capacity as well as the use of carbon based fuels. If

regulatory requirements necessitate reduction of emissions,

the market potential for CCS could be huge. For example,

both China and India use a significant amount of coal-fired

generation and have significant storage potential.

How It WorksBefore carbon can be injected underground for long-term

storage, it has to be separated from other gases in the power

plant. Carbon can be captured by post-combustion means

from the flue gas in an otherwise conventional plant. In a

gasification plant, CO2 can be separated from hydrogen and

other components via pre-combustion means. Gasification

plants have the advantage of higher CO2 concentrations while

post-combustion capture has the advantage of being able to

be retrofitted to existing plants.

Solvent absorption is the most common method proposed

for carbon capture. In the case of a retrofit, flue gas would be

bubbled through chemical solvent such as monoethanolamine

in an absorber column. In new gasification plants, synthetic

gas would be mixed with gaseous solvent in an absorption

chamber. In both cases, the CO2 would subsequently be

released from the solvent in a separate low pressure and/or

low temperature process, so that the solvent could be re-used.

Carbon capture and storage with enhanced oil recovery

European Union committed € 1 billion in six CCS projects in

2009 and the US also committed US$ 1 billion in the FutureGen

2.0 project in 2010. Currently, there are over 200 active or

potential CCS projects globally including those in China and

Australia.

What is the outlook? Performance: There is a significant energy penalty

associated with CCS using current technologies. The focus

of on-going research is on reducing the amount of energy

required to capture CO2 as well as the amount of CO2 leakage

that can occur. CCS technology is expected to be commercially

available after 2020.

Deployment: The deployment of CCS will be dependent

on carbon pricing or carbon regulation policies as well as

technology advancements. The widespread availability

and low cost make coal a strategically important fuel, and

therefore CCS is a critical technology for a low carbon future.

Economic incentives such as subsidies, special tariffs, and/

or carbon credits will be needed to promote uptake of this

technology.


How does it help the climate?By selecting the most sustainable and efficient generation

mix and associated technologies, emissions can be most

effectively reduced and controlled at the source. Making the

grid smarter can increase the intake of renewables, enable

customers’ engagement, improve operation efficiency and

reduce losses. Adoption of new end-use technologies not only

reduces consumption but also could bring disruptive changes

to conventional markets. For example, solid-state lighting can

reduce consumption and offer more durability and flexibility

in lighting needs. Electric vehicles (EV) can provide a lower

emission alternative to gasoline-based vehicles .

What is the status?Technology: There are many technologies available and

many more emerging to improve efficiency. From the utility

side, for example, advanced coal technologies, as mentioned

in a previous section, enable coal-fired plants to generate

electricity more efficiently; High voltage direct current (HVDC)

transmission systems enable bulk power transmission over

long distances with less loss and offer more versatile power

flow controls.

Smart grid technologies such as smart metering, advanced

metering infrastructure (AMI) and demand response enable

greater interaction with customers. From the end-user side,

efficient lighting systems, such as solid-state lights and smart

controls, use less energy to provide lighting needs, and use it

more intelligently.

EVs use advanced battery and power electronics technologies

to offer a cleaner means of transportation; distributed energy

resources (DER) such as small renewables, storage devices

and fuel cells enable a more decentralized and efficient

means of supplying electricity. Even in conventional electrical

appliances, there are continuous improvements in their

energy efficiency over time.

Cost: The costs of energy efficiency products and/or services

vary. Investments at the utility level are usually substantial

(e.g. hundreds of millions) with a longer pay-back period.

Energy EfficiencyEnergy Efficiency spans a wide range of options, including generation, delivery and end-uses. Technologies can reduce consumption, delivery losses, and even help change consumers’ behavior leading to lower emissions.

However, end-use efficiency can be improved more rapidly

because the products typically have a much shorter life span

and are replaced more frequently. The success of certain

emerging products, such as solid-state lighting is quickly

emerging. Market acceptance of EVs and fuel cells will hinge on

significant performance improvements, regulatory policy and

incentives.

Market: Demand for more efficient and cleaner conventional

power plants will remain high, particularly in developing

countries. China is currently the major market for supercritical

and ultra-supercritical developments. Together with combined

cycle gas turbines, these three will be the main efficiency

technologies used on the generation side.

On power delivery, HVDC is a mature technology but very

expensive. It is only competitive if the energy transmission

distance is above one thousand kilometres and the power

exceeding thousands of megawatts. With rapid development of

large-scale renewables worldwide, HVDC lines and associated

network reinforcements are becoming a key tool of building a

smart grid in developing countries, particularly in China. Smart

meter deployment requires both long-term policy support and

a sustainable market environment. With its high initial cost and

extensive communication infrastructure coverage required,

only countries with major government subsidies, mature

market environment and mandatory requirements would make

the deployment/trials possible.

End-use technologies to save energy in one form or another are

available to consumers in most markets. The most attractive

market is typically the large energy consumers, such as

commercial and industrial customers, whose energy savings

can have a significant impact on the total electric/gas bill.

Because of the up-front investment costs and/or availability of

local resources, the cost of conventional alternatives is likely to

remain considerably lower without any government subsidies.

What is the outlook? Performance: Conventional coal-fired plants have

an efficiency of around 35-38%. Supercritical and ultra-

supercritical can reach 40-45%. Further advanced cycles

may reach 50%. The latest combined cycle gas turbines have

claimed efficiencies up to the high 50s and even 60%. HVDC

is a mature technology but its higher efficiency, e.g. 3% loss

per 1,000 kilometres, will only be realised with long distance

bulk power transmission. Large-scale trials on smart meters

are beginning to emerge in some developed countries. It is

believed that the savings will range from 5-10% but regulatory

and institutional changes are needed. More importantly,

customer acceptance is yet to be demonstrated.

Despite a higher cost, solid-state lighting is highly efficient

as it uses only one-sixth of the energy compared with

conventional incandescence lights. Sensors and automation

devices can further reduce the consumption by a few

percent. DERs such as micro-turbines and fuel cells are now

able to achieve 25-35% efficiency. If waste heat is reused,

the efficiency can reach up to 50% or higher. However, the

availability of fuel supply such as natural gas and hydrogen,

varies, and its price is subject to fluctuation.

Deployment: The deployment of energy efficiency

technologies is mainly driven by government policy and

incentives. Different technologies are available but the

benefits are not necessarily the most apparent and attractive,

nor easily allocated to the contributors and/or participants.

The key challenge is to allocate adequate and appropriate

resources to educate the public and encourage consumer

adoption. Many emerging end-use technologies are, at best,

in the “early adopter” stage of development, and without

supporting policies and innovative business models, they will

not reach mass commercialisation.

EconomicsThe current cost of electric vehicles is not significantly higher

than conventional cars but EVs are not yet widely available.

The range and reliability of EVs, lack of standardisation and

ease of access to the charging network are typical concerns of

consumers. Government incentives can dramatically improve

investment economics.

Market PotentialPotential markets for EVs are vast and include vehicles of

every size, from the smallest and light-duty vehicles

(automobiles and light trucks) to commercial and even the

heaviest trucks, likely for individual or fleet applications.

The large-scale EV deployment is also dependent on the

availability of charging infrastructure.

Electric VehiclesFunctionTo replace combustion engines in conventional automobiles by electric motors powered by rechargeable batteries

How it WorksAn EV runs on one or more electric motors which draw energy

from an on-board battery system. Today, the lithium-ion

battery is most commonly used because of its high power and

energy density, as well as its lower cost. The most commercially

available EVs can travel 200-300 kilometres after being fully

charged. A typical full recharge will take about 6-8 hours

on normal household supply (single phase) but is reduced to

minutes on fast charging station (three-phase).


EconomicsEnergy storage technologies can provide a range of energy

and power capabilities for different uses. Pumped hydro

storage (PHS) and compressed air energy storage (CAES) are

the least expensive for large-scale applications. Flywheels and

supercapacitors can be competitive in applications that

require high power for a short time. Electrochemical

batteries can offer different power and energy range but

their costs vary and they are usually very expensive for high

energy applications.

Market Potential The worldwide installed capacity of PHS is over 110,000 MW.

There are only two commercial CAES facilities worldwide.

Underground CAES offers a lot of advantages but is limited to

sites with appropriate geological cavities. For electrochemical

batteries, although sodium sulfur (NaS) batteries have

commercial products, many other technologies, such

as flow batteries, are still evolving and are mostly in the

demonstration or early commercialisation stage. However,

there are many utility-scale storage applications such as

renewable integration, peak looping, load shifting, grid

operational and stability improvements, if the economics and

regulatory environments are favourable.

How It WorksPHS pumps water from a lower reservoir to an upper

reservoir during off peak hours, and reverses the flow to

Electric Storage

FunctionTo store / release electric energy by different means for various power and energy applications

generate electricity as required. CAES uses compressors to

force air into an underground storage reservoir at high

pressures, and then release the compressed air for

electricity generation. Electrochemical batteries take

advantage of the electricity generated / absorbed from

different reversible chemical reactions to generate and

store electricity. Flywheels spin at high speed using a

motor and then release the kinetic energy when the motor

is switched into a generator mode.

Fuel Cells FunctionTo use natural gas or hydrogen to generate electricity through an electrochemical process

EconomicsThe current cost of end-use, stationary fuel cells is significantly

higher than conventional alternatives. However, some

governments are providing R&D funding and incentives to

drive technology and improve investment economics. The

reduced price of natural gas in some markets may improve the

economics for fuel cells as well.

Market Potential Primary applications for end-use fuel cell products are

buildings, universities and hospitals or residential complexes

with relatively high and coincident electric and hot water /

space heating demand.

How It WorksFuel cells are electrochemical devices that convert a fuel

(typically hydrogen or natural gas) and oxygen into generating

electricity and water. The main advantages of fuel cells are

that unlike turbines and engines, they emit low amounts of

carbon dioxide (none if hydrogen is used) and also have high

efficiencies (approaching 40% or more). Some fuel cell

technologies can also recover unused thermal energy

resulting in a combined heat and power (CHP) configuration

that could increase the efficiency to over 70%.

Typical schematic of proton exchange membrane fuel cell

system


Low-Carbon Technology & CLPCLP believes that prudent adaptation of technologies and innovation will make vital contributions to our transformation towards a low-carbon portfolio.

CLP has been developing low-carbon power generation facilities since the 1980s when preparations began for the first commercial

nuclear power plant in the Chinese Mainland. CLP will continue to accelerate the development of low-carbon technologies to meet

our demanding target of reducing our carbon emissions intensity, and seek opportunities to help bring proven technology in our

service areas, such as wind, solar, nuclear, combined cycle gas-fired plants, advanced coal plants and energy efficiency initiatives

and services.

CLP’s Low-carbon Technology InvestmentsCLP is well-positioned to bring innovations and new technologies to the Asia-Pacific region as we have extensive experience in early technology adoption and transfer

• In 1985, CLP entered into a joint venture with its Chinese partner to build the Chinese Mainland’s first commercial nuclear

power station at Daya Bay. Through the joint venture, CLP participated in the adoption of advanced equipment and technology

from overseas to build the pressurised water reactor nuclear station.

• CLP introduced the first natural gas combined cycle gas turbine technology into Hong Kong for generation at our Black Point

Power Station between 1996 and 2006.

• CLP has been developing hydropower since 1997. CLP is involved in the deployment and operation of hydropower

infrastructure projects ranging from 1 MW to more than 1,000 MW in size. Today, CLP’s total net equity capacity of

hydropower is 522 MW.

• CLP is among the early adopters of advanced domestic supercritical coal technology. In the Chinese Mainland, CLP is the

project manager, majority owner and operator of the 1,200 MW supercritical plant at Fangchenggang. In addition, CLP has

worked with its Chinese partner in building two 1,000 MW ultra-supercritical units. CLP is transferring advanced coal

technology to other areas in the Asia-Pacific region, for example through our development of a supercritical coal plant in India.

• CLP has a large portfolio of wind farms in the Asia-Pacific region. Our portfolio includes over 1,500 MW (net equity) of

operating wind farms as well as those under development and construction. Our wind farm investments span from Australia,

to the Chinese Mainland, and to India.

• CLP is also exploring geothermal technology in Australia through a pilot project since 2008.

• CLP began to explore solar generation technologies since 2008. Currently CLP is working with joint venture partners in

Thailand to build one of the largest utility-scale solar flat plate photovoltaic plants in Asia-Pacific.

• CLP is not only a leader in employing low-carbon technologies, but is also a promoter of end-use efficiency and renewable

energy. In Hong Kong, CLP helps customers better understand their energy usage patterns, provides energy audits, offers

customised energy saving solutions, promotes EV usage and has established EV charging stations. The energy services are

also extended to the Chinese Mainland, particularly in Guangdong, through CLP’s subsidiary in Shenzhen. In Australia, we

provide products for customers to purchase renewable energy and to offset their carbon emissions.


CLP has been incorporating different technologies to move towards a low-carbon energy portfolio

The Way ForwardThere are various technologies and alternative energy sources available and under development that can generate electricity with far lower carbon emissions than traditional fossil fired means. However, the cost of that electricity will be higher.

Even though the threat of climate change is clear and urgent, little value is currently placed on efforts to reduce carbon emissions.

Consequently, adoption of the associated technologies is generally slow and dependent on local conditions. Some remain at the

concept stage or limited to small scale demonstration projects with uncertain prospects of reaching full scale commercial maturity.

However, if regulatory and economic structures were in place to value widespread use of low carbon generation, then the position

would change dramatically. The performance, scale and reliability of the technology would improve more rapidly and there would

be a solid basis for investment. Equally importantly, the cost would come down and the economic impact would probably be less

severe than some fear.

We need decisive action through international agreements and national energy policies to produce the change in energy production

that we all know is necessary. But, even in advance of achieving an international consensus, there is more that can be done at a local

level between governments and the private sector.

We see scope for early action in a number of areas:

• Increased use of natural gas in areas where the supply is secure;

• Action to enable the oldest and most carbon intensive coal-fired plants to be retired on a realistic commercial basis;

• Incentives to promote the widespread development of renewables, particularly wind and solar energy;

• Active government support for nuclear programmes, including provision of effective waste disposal;

• Financial support for full scale carbon capture and storage projects that will enable the technology to be perfected

and proven; and

• Greater educational effort to promote energy efficiency in the public, particularly in the younger generation.

Ultimately, however, there must be an international basis for a value on reducing carbon. It seems clear that the cost of inaction will

be much greater.

In the meantime, CLP will continue to pursue its targets for greater use of renewables and other low-carbon technologies, and we

will continue to be a local and international voice in the difficult but essential debate on low-carbon energy policy.


Other Related PublicationsCLP is committed to the principles of sustainable development. Over the years, we have been open and transparent in reporting

our efforts towards striking a balance between the economic, social and environmental needs of the communities we serve.

All the reports and publications are available on our company website :

https://www.clpgroup.com/ourcompany/aboutus/resourcecorner/publications/pages/publication.aspx?lang=en

Our Journey to A Low-Carbon Energy Future2010

GlossaryCarbon footprintThe total amount of greenhouse gas emissions produced by an individual, organisation, , activity, or product.

Capacity factorA ratio between the actual energy generated over a period of time compared to the equivalent energy generated based on the designed rating of the unit.

De-carbonise To switch from high carbon fossil fuels (e.g. coal), to lower carbon fossil fuels (e.g. natural gas) and to eventually carbon-free sources (e.g. renewable energy).

Flue gas Exhaust gas emitted from the boiler of a power plant.

IntercoolingA technique used in gas turbines to cool the compressor air using a heat exchanger allowing higher pressure ratios, increased airflow and higher cycle efficiency.

Levelised cost of electricityThe cost of electricity generation over the lifetime of a power generation plant, expressed on a per energy unit basis (e.g. dollars per kilowatt-hour). It includes investment, operations and maintenance, and fuel costs. Levelised cost excludes electricity transmission, distribution, and customer service costs.

Feed-in tariffPrice that generators are paid for the energy they provide to the power grid, typically assuring a higher price for renewable energy than for conventional energy.

Passive safety features Engineering features used in a nuclear reactor to shut down safely under some prescribed contingent events (e.g. overheating) without the dependency on operator or equipment actions. Such designs usually employ the natural laws of physics to slow the nuclear reaction or maintain reactor cooling instead of relying of complex control mechanisms or power-driven equipment hence more reliable and safer.

Stage of development

• Research & Development: Early-stage of technology innovation including basic and application research• Demonstration: Technology being deployed for first commercial-scale applications• Commercialisation: Technology being available but still expensive comparing with alternative technologies• Cost Competitive: Technology with cost level reaching mainstream technologies in similar applications

Beyond Copenhagen 2009

Daya Bay Nuclear Power Station2010

CLP At a Glance - “Powering Asia Responsibly”2010

CLP’s Climate Vision 2050 - Our Manifesto on Climate Change 2007

CLP Annual Report 2009

CLP Sustainability Report 2009

CLP Technology Roadmap 2008

We welcome your views and questions on our Technology Roadmap. Please contact:

John W M Cheng PhD

Manager

CLP Research Institute Ltd.

Email: [email protected]

Fax: (852) 2678 8405

CLP Technology Roadmap1