CLP HOLDINGS (00002) has announced its operational performance for the three months ended March 31, 2026. In Hong Kong, the electricity sales volume of CLP Power Hong Kong Limited increased by 3.2% year-on-year to 7.319 billion kWh during the first quarter of 2026. This growth is primarily attributed to the sustained economic recovery in Hong Kong, which drove higher electricity demand across most sectors. Sales to data centers saw a significant rise of 11.1%, reflecting the continued expansion of artificial intelligence and digital services. However, sales to residential customers declined, mainly due to a milder winter and an increase in residents traveling abroad during holidays.
Despite ongoing geopolitical tensions in the Middle East affecting global fuel supply and costs, CLP Power has maintained a highly reliable electricity supply through its diversified fuel mix, which includes stable-priced nuclear power from the Daya Bay Nuclear Power Station in Guangdong Province.
CLP Power has increased the allocation for its "CLP Community Energy-saving Fund" to HK$270 million in 2026 to continue supporting vulnerable groups and Hong Kong citizens. In the first quarter, the "Electricity Charge Subsidy Scheme for Grassroots Families" was launched, with HK$50 million allocated to assist over 70,000 eligible households, including low-income families and subdivided unit residents, in alleviating energy expenses. The "CLP Consumption Voucher Scheme" was also introduced, providing HK$60 million to support vulnerable communities and stimulate consumption.
Recognizing the critical importance of the Northern Metropolis development for Hong Kong's future, CLP Power is investing in power infrastructure construction in areas such as the Lok Ma Chau Loop, Yuen Long, and Hung Shui Kiu. Following the government's land grant in March for the Sha Ling Data Park to develop a supercomputing center, CLP Power has maintained close communication with the winning bidder to provide tailored power supply solutions that meet its energy needs at different operational stages.
In January, CLP Power and HSBC signed a cooperation agreement to launch a new "Sustainable Supply Chain Finance Programme," supporting local suppliers in enhancing their environmental, social, and governance (ESG) performance. This initiative combines CLP Power's sustainable procurement framework with HSBC's sustainable finance solutions to support suppliers at various stages of their sustainability journey.
CLP Power has joined the working group established under the government's "Updated Roadmap on Popularisation of Electric Vehicles in Hong Kong," continuing to accelerate the adoption of electric vehicles and the development of charging network infrastructure through its electrical energy expertise and e-mobility consultancy services.
This year marks the 30th anniversary of the partnership between the CLP Group and China National Offshore Oil Corporation (CNOOC) to introduce natural gas-fired power generation to Hong Kong. In April, the two parties signed a Memorandum of Understanding to deepen cooperation in natural gas and low-carbon energy fields, including hydrogen energy, carbon capture, utilization and storage (CCUS), and liquefied natural gas (LNG) bunkering services.
In February, CLP Power's subsidiary, CLP ePower Limited, in collaboration with CNOOC (Shenzhen) International Ship Clean Energy Co., Ltd., completed Hong Kong's first ship-to-ship LNG bunkering operation for a Very Large Crude Carrier (VLCC). This demonstrates CLP ePower's and its partners' professional capability in providing low-carbon fuel services for various vessels, strengthening Hong Kong's position as a world-class green marine fuel bunkering hub.
CLP ePower was successful in a tender in January, securing approval to install and operate electric vehicle charging points at 21 designated taxi stands in Hong Kong. During the quarter, CLP ePower signed electric vehicle charging contracts with three more taxi fleets, and now provides charging services for all five licensed taxi fleet operators in Hong Kong. CLP ePower's network currently covers over 300 charging points, primarily serving commercial electric vehicles like electric taxis.
In Mainland China, the operation of CLP China's zero-carbon energy assets remained stable. Stable electricity generation and tariffs from the Daya Bay Nuclear Power Station and Yangjiang Nuclear Power Station in Guangdong Province ensured a robust financial contribution from the nuclear power portfolio. Early in 2026, three wind power projects owned by CLP China—the Xundian Phase III Wind Farm (50 MW) in Yunnan Province, and the Juancheng Phase I Wind Farm (300 MW) and Guanxian Phase I Wind Farm (125 MW) in Shandong Province—were all connected to the grid.
Although wind and solar resources were slightly weaker, improved water conditions led to an increase in hydroelectric generation. Despite increased grid curtailment affecting most of CLP China's operational regions outside Guangdong, renewable energy generation for the quarter still recorded year-on-year growth.
CLP China commenced construction on the Juancheng Phase II Wind Farm project (106 MW) in Shandong during the first quarter. The Guanxian Phase II Wind Farm project (106 MW), also located in Shandong, is expected to start construction later this year. Construction of the Hepu Solar Photovoltaic Project in Guangxi Zhuang Autonomous Region is progressing steadily.
The coal-fired investment projects in which CLP China holds minority stakes experienced a decrease in power generation in the first quarter due to intensified market competition. Overall, however, the operations of these projects remained resilient amidst global energy market volatility as they utilize locally sourced coal.
In March, CLP's wholly-owned subsidiary, CLP Power (China) Limited, issued a three-year, RMB 1 billion bond in China's interbank market. Amid strong market demand, the coupon rate was set at a competitive 1.85%. This marks CLP's first Panda bond issuance under its "Climate Action Financing Framework," further enhancing the Group's financial flexibility to support renewable energy projects in Mainland China and aligning with the business's continued move towards a self-financing development model.
The "Outline of the 15th Five-Year Plan for National Economic and Social Development of the People's Republic of China (2026-2030)" approved in March reaffirmed the country's long-term commitment to low-carbon energy to support green development. Prior to this, the State Council issued implementation guidelines in February on improving the national unified electricity market system, aiming to reduce provincial market barriers and optimize resource allocation to promote renewable energy development. These policies are expected to support the continued growth of zero-carbon energy.
In Australia, EnergyAustralia's generation portfolio performed solidly in the first quarter, with the overall wholesale electricity market in Australia remaining stable despite volatility in global energy markets. The Yallourn Power Station's Unit 2 in Victoria maintained reliable overall operation after the successful replacement of a faulty turbine in February. EnergyAustralia took advantage of the unit's outage to bring forward another maintenance program originally scheduled for the second quarter of this year. This arrangement is expected to enhance Unit 2's availability for the remainder of 2026. With major outage and overhaul works completed over the past few years, the Yallourn Power Station's performance is in line with expectations, achieving its highest availability rate in recent years in March. The power station's overall generation for the first quarter remained stable compared to the same period last year.
The Mount Piper Power Station in New South Wales maintained high availability, but softer wholesale electricity prices led to reduced utilization, resulting in a decrease in first-quarter generation. Mount Piper possesses robust flexible generation capacity, enabling it to respond to increased market demand typically seen in winter. EnergyAustralia's gas-fired generation assets also continued to demonstrate high reliability and availability. Supported by long-term contracts 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 portfolio of flexible generation capacity. The financial close for the 50 MW / 245 MWh Hallett Battery Energy Storage System in South Australia was completed in February. Located near the Hallett Power Station, the battery system is expected to be operational in early 2028, capable of providing up to five hours of power for approximately 81,000 households.
On the retail front, intense market competition led to continued customer churn, resulting in EnergyAustralia's customer account numbers decreasing by approximately 27,000 to 2.27 million as of the end of March. Persistent cost-of-living pressures are affecting customers and posing challenges for EnergyAustralia's retail business. EnergyAustralia remains committed to supporting customers facing financial hardship.
Following indications from the Australian Energy Regulator that it will reduce the default market offer (DMO) in response to falling wholesale electricity prices and other supply costs, retail electricity prices in eastern Australian states are set to decrease in July. Starting in July, electricity retailers in New South Wales, Queensland, and South Australia will also be required to provide three hours of free electricity during the midday period of peak solar generation to eligible customers. Victoria will implement similar requirements starting in October.
EnergyAustralia's program to modernize the technical infrastructure and operational model of its retail business is making good progress. Additionally, as part of operational transformation, EnergyAustralia has completed the transfer of core corporate functions, including technology, to Tata Consultancy Services.
In March, EnergyAustralia entered into a five-year partnership agreement with the Australian Football League (AFL). Under this agreement, Marvel Stadium in Melbourne and AFL House will meet their energy needs through renewable sources via a long-term power purchase arrangement.
In India, Apraava Energy completed the sale of its sole coal-fired asset—the Jhajjar Power Plant in Haryana—in March, in accordance with an agreement with Jindal Jhajjar Power Limited. Following this transaction, Apraava Energy's existing assets are all zero-carbon energy assets.
The operation of Apraava Energy's renewable energy projects remained stable in the first quarter. However, reduced natural resources led to a slight year-on-year decrease in wind and solar power generation. Two operational transmission assets—the Kohima-Mariani Transmission Ltd. interstate transmission line in Northeast India and the Satpura Transco Private Ltd. transmission line in Madhya Pradesh—both maintained high availability rates.
Apraava Energy commenced construction on its 300 MW wind power project in Karnataka during the first quarter. The project is expected to be commissioned in phases starting from the third quarter of 2027 and fully operational by 2028, becoming Apraava Energy's largest wind farm.
In Rajasthan, construction continues to progress on two solar photovoltaic power stations—the 250 MW NHPC Bhanipura I project and the 300 MW NTPC Bhanipura II project—both expected to be operational by 2027.
Apraava Energy's Fatehgarh IV transmission project in Rajasthan commenced operations in January, comprising a 22-kilometer transmission line and a 2,500 MVA substation. Apraava Energy also plans to begin operations of the Fatehgarh III project, also in Rajasthan and involving a 230-kilometer transmission line, in the second half of 2026.
Apraava Energy continues to advance the construction of two other transmission projects: the Rajasthan IV A project, involving a 200-kilometer transmission line and a 6,000 MVA substation; and the Karera transmission project in Madhya Pradesh, involving a 43-kilometer transmission line and a 3,000 MVA substation. Both projects aim for commissioning in the second half of the year.
During 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 as of the end of March. Apraava Energy currently has nine smart metering and communication system projects, collectively involving over 9.7 million smart meters.
In Taiwan, China, and Southeast Asia, Taiwan's Hoping Power Plant maintained strong and reliable generation performance during the quarter. One of its two generating units completed its planned annual overhaul and resumed operation ahead of schedule. Although coal prices remain high, the financial contribution from the Hoping Power Plant improved, supported by increased recovered fuel costs. The current power purchase agreement is set to expire in 2027, and the plant is in discussions with the power purchaser regarding a possible extension.
The operation of the Lopburi Solar Photovoltaic Power Station in Thailand remained stable.
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