CLP Holdings (00002): The sale of electricity in China increased by 3.2% to 73.19 billion kWh annually.

CLP Holdings (00002) releases the business update for the three months ending March 31, 2026. Hong Kong In the first quarter of 2026, CLP Power Hong Kong Limited's (CLP Power) electricity sales volume increased by 3.2% year-on-year to 7.319 billion kWh, mainly driven by the continued improvement in the Hong Kong economy, leading to an increase in electricity demand across most industries. The electricity sales volume for data centers increased by 11.1% year-on-year, reflecting the continued growth in demand for artificial intelligence and digital services. However, residential customer electricity sales volume decreased, mainly due to warmer winter weather and an increase in Hong Kong residents traveling abroad during holiday periods. Despite ongoing tensions in the Middle East geopolitical situation affecting global fuel supply and costs, CLP Power has maintained a highly reliable power supply with a diversified fuel mix, including stable-priced nuclear energy from the Daya Bay Nuclear Power Plant in Guangdong province. CLP Power increased funding for the "CLP Community Energy Efficiency Fund" to HK$270 million in 2026 to continue supporting underprivileged communities and Hong Kong citizens. The "Grassroots Household Electricity Subsidy Program" launched in the first quarter allocated HK$50 million to benefit over 70,000 eligible households, including grassroots and subdivided unit residents to alleviate energy expenses. The "CLP Consumption Voucher Program" has also been introduced, with HK$60 million allocated to assist underprivileged communities and stimulate consumption. The development of the Northern Metropolis Area is crucial for the future of Hong Kong, and CLP Power is investing in building power infrastructure in areas such as Lok Ma Chau, Yuen Long, and Hung Shui Kiu. With the government approving land for the Sha Ling Data Park in March to develop a supercomputing center, CLP Power continues to closely communicate with the winning bidder to provide tailored power supply solutions for different operational stages. CLP Power signed a cooperation agreement with HSBC in January to launch a new "Sustainable Supply Chain Finance Program," supporting local suppliers to enhance their environmental, social, and governance performance. The collaboration combines CLP Power's sustainable procurement framework with HSBC's sustainable finance solutions to support suppliers in different stages of sustainable development. CLP Power has joined a working group established under the "Hong Kong Electric Vehicle Popularization Roadmap Update" by the government to accelerate the development of electric vehicles and charging network infrastructure through professional energy and electric travel consulting services. This year marks the 30th anniversary of the cooperation between the CLP Group and CNOOC Group in introducing natural gas-fired power generation to Hong Kong. Both parties signed a cooperation memorandum in April to deepen collaboration in the fields of natural gas and low-carbon energy, including hydrogen energy, carbon capture, storage, and liquefied natural gas refueling services. CLP Power Systems Control Holdings Limited (CLP Power Systems) partnered with CNOOC (Shenzhen) International Ship Clean Energy Co., Ltd., in February to successfully complete the first liquefied natural gas ship-to-ship bunkering operation for an "ultra-large oil tanker in Hong Kong, showcasing CLP Power Systems professional capability in serving various types of vessels with low-carbon fuels and consolidating Hong Kongs position as a world-class green marine fueling center. CLP Power Systems secured the bid in January to establish and operate electric vehicle charging stations at 21 designated taxi stands in the territory. In the first quarter, CLP Power Systems signed electric vehicle charging contracts with three taxi fleets, currently serving operators of five licensed taxi fleets across Hong Kong. CLP Power Systems network now covers over 300 charging points, primarily serving electric taxis and commercial electric vehicles. Mainland China The operation of CLP China's zero-carbon energy assets remained stable. The electricity generation and prices of the Daya Bay Nuclear Power Plant and Yangjiang Nuclear Power Station in Guangdong province remained stable, contributing to a robust financial performance of the nuclear energy asset portfolio. At the beginning of 2026, CLP China's wind energy projects in Xundian Phase III (50 MW) in Yunnan province, Juancheng Phase I (300 MW) and Guanxian Phase I (125 MW) in Shandong province, were all grid-connected. Despite a slight weakening in wind and CECEP Solar Energy resources, improved water resource conditions led to an increase in hydropower generation. Although CLP Chinas operations in most areas outside Guangdong were affected by grid curtailment increasing, the renewable energy generation for the quarter still recorded a year-on-year growth. CLP China commenced construction of Juancheng Phase II wind farm project (106 MW) in Shandong in the first quarter. A similar project, Guanxian Phase II wind farm project (106 MW), also in the province, is expected to start construction later this year. The construction of the CECEP Solar Energy photovoltaic project in Hepu, Guangxi Zhuang Autonomous Region, is progressing steadily. CLP China's few minority-owned coal investment projects experienced a slight decrease in electricity generation in the first quarter due to increased market competition. Overall, the operations remained resilient due to the use of locally sourced coal for these projects, maintaining resilience amidst fluctuations in the global energy market. In March, CLP China's wholly-owned subsidiary CLP Power China (China) Limited issued a three-year RMB 1 billion bond in the Interbank bond market in China, with an issuance rate competitively set at 1.85% in response to strong market demand. This marks CLP's first issuance of Panda bonds under the Climate Action Financing Framework, further enhancing the Group's financial flexibility to support renewable energy projects in mainland China and move towards a model of internal financing development. The approval of the "Outline of the Fifteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China" (2026-2030) in March reaffirmed the country's long-term commitment to low-carbon energy to support green development. Prior to this, in February, the State Council issued the Implementation Opinions on Improving the National Unified Electricity Market System, aiming to reduce provincial market barriers and optimize resource allocation, thereby promoting the development of renewable energy. These policies are expected to support the continued growth of zero-carbon energy. Australia EnergyAustralia's power generation portfolio demonstrated steady performance in the first quarter, despite fluctuations in the global energy market, with Australia's overall electricity wholesale market remaining stable. The Yallourn Power Station in Victoria maintained strong and reliable electricity performance in this quarter, with one of the two generators completing its planned annual maintenance and resuming operation ahead of schedule. Despite high coal prices, the financial contribution of the Yallourn Power Station improved with the recovery of increased fuel costs. The current power purchase agreement is set to expire in 2027, and discussions are underway with the power purchaser to potentially extend the agreement. The Mount Piper Power Station in New South Wales maintained high availability, but a softening in wholesale electricity prices led to a reduction in the power station's utilization rate, resulting in a decrease in electricity generation in the first quarter. The Mount Piper Power Station possesses robust flexible power generation capabilities to meet the increase in market demand usually seen during the winter season. EnergyAustralia's gas-fired power assets also continue to exhibit high reliability and availability. With long-term contracts signed with local coal and gas suppliers, EnergyAustralia's operations have not been significantly impacted by the current international energy situation. EnergyAustralia continues to expand its flexible power generation capacity, with the completion of the financial settlement of the 50 MW/245 MWh Hallett Battery Energy Storage System in South Australia in February. Located near the Hallett Power Station, the battery system is expected to be completed by early 2028, providing up to five hours of power to approximately 81,000 households. In terms of retail business, intense market competition has led to the continual loss of customers, resulting in a decrease of approximately 27,000 customer accounts to 2.27 million by the end of March. The pressure of living costs continues to impact customers and poses challenges for EnergyAustralia's retail business. EnergyAustralia will continue to focus on supporting customers facing economic difficulties. Following the announcement by the Australian energy regulator to reduce benchmark electricity prices in response to declining wholesale electricity prices and other supply costs, retail electricity prices in the eastern states of New South Wales, Queensland, and South Australia will be reduced from July. Starting in July, retail electricity suppliers in New South Wales, Queensland, and South Australia will also be required to provide three hours of free electricity to eligible customers during the period of highest solar generation from CECEP Solar Energy. Similar provisions will be implemented in Victoria starting in October. EnergyAustralia's modernization plan for the technical infrastructure and operational model of its retail business has made good progress. Additionally, as part of the operational transformation, EnergyAustralia has successfully transferred core corporate functions including technology to Tata Consulting Services. In March, EnergyAustralia entered into a five-year partnership agreement with the Australian Football League (AFL). Under the agreement, Melbourne's Marvel Stadium and the AFL House will satisfy their energy needs with renewable energy through a long-term power purchase arrangement. India Apraava Energy completed the sale of its only coal asset, the Hargreave Power Plant in Haryana state, according to an agreement with Jindal Jhajjar Power Limited in March. Following the transaction, Apraava Energy's existing assets are all zero-carbon energy assets. The operation of Apraava Energy's renewable energy projects in the first quarter remained stable. However, a decrease in natural resources led to a slight decrease in wind and CECEP Solar Energy generation compared to the same period last year. Two operational transmission assets the inter-state transmission lines of Kohima-Mariani Transmission Ltd. in northeast India and Satpura Transco Private Ltd. in Madhya Pradesh both maintained high availability. The 300 MW wind power project in Karnataka commenced construction in the first quarter. The project is expected to be commissioned in phases starting in the third quarter of 2027 and fully operational by 2028, becoming Apraava Energy's largest wind farm. In Rajasthan, the construction of two CECEP Solar Energy PV projects the 250 MW NHPC Bhanipura I project and the 300 MW NTPC Bhanipura II project continues, with both expected to come online in 2027. The Fatehgarh IV transmission project in Rajasthan was commissioned in January, including a 22 km transmission line and a 2,500 MVA substation. Apraava Energy also plans to start operations in the second half of 2026 for the Fatehgarh III project, involving 230 km of transmission lines in the same state. Apraava Energy continues to advance the construction of two other transmission projects, the Rajasthan IVA project involving 200 km of transmission lines and a 6,000 MVA substation, and the Karera transmission project in Madhya Pradesh involving 43 km of transmission lines and a 3,000 MVA substation. Both projects are targeted for commissioning in the second half of the year. In the first quarter, Apraava Energy installed over 562,000 smart meters across India, bringing the total number of installed smart meters to over 3.1 million by the end of March. Apraava Energy has nine smart meter and communication system projects, totaling over 9.7 million smart meters. Taiwan and Southeast Asia The Heping Power Plant in Taiwan maintained strong and reliable power generation performance in this quarter, with one of the two generating units completing its scheduled annual maintenance and resuming operation ahead of the original schedule. Despite high coal prices, the financial contribution of the Heping Power Plant improved with the recovery of increased fuel costs. The current power purchase agreement is set to expire in 2027, and the power plant is discussing possible extension of the agreement with the purchaser. The Lopburi CECEP Solar Energy PV plant in Thailand maintained stable operations.