Exploring the Quality of Hong Kong Energy Management and Scope of Improvement

This research aims to explore the existing energy management system of the Hong Kong city and find the scope of Quality improvement in existing energy management system industry. The literature review discusses the energy consumption and production in Hong Kong, ISO 50001 Energy management System, macro analysis of Hong Kong industries and businesses, Energy Management System Industry in Hong Kong, Situational Dynamics and drivers, restraints and opportunities. The research methodology includes exploratory research design, secondary data collection, and primary data collection through semi-structured interviews. The study aims to identify the most suitable and profitable energy management procedure for Hong Kong-based businesses and industrial organizations.

Running head: FINAL DISSERTATION
Exploring the Quality of Hong Kong Energy Management and Scope of Improvement
Name of the Student
Name of the University
Author note

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Executive Summary
Energy Management Systems Industry in Hong Kong is a most emerging sector and
one of the most essential resources of earning of the nation. The market of domestic energy
management systems mainly focuses on the development of production facilities, storage and
distribution of electricity across the nation. In the past 5 years energy management systems
has improved significantly. Hong Kong’s focus on energy sector has resulted in growth of
energy management systems in the country. Changing trends and energy requirement needs
in the country have impacted the energy management systems industry in positive ways. The
purpose of this research is to explore the existing energy management system of the Hong
Kong city. The secondary purpose of this research is to find the scope of Quality
improvement in existing energy management system industry.
This research has chosen the exploratory research design to explore all aspects of the
energy management strategy and pans that can be implemented in the Hong Kong city. For
secondary data collection, the research will collect data from online articles, journals,
previously published study report, government report and theoretical books. For primary data
collection the research will conduct a semi-structured interview on 1 management level
person from Business Environment Council Limited, 1 personnel from The, and 1 person
from Electrical and Mechanical Service Department (EMSD) and 2 Environment and Energy
Management experts.
From the study it has been found that energy management sector is becoming the
important source of earning nationally. The energy management system is divided into three
categories, namely Domestic Energy Management, Industrial Energy Management and
Commercial Energy Management. Before investing on any specific energy management

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policy and procedure the Hong Kong based business and industrial organisations should have
appropriate idea about the existing conditions, scopes of energy management programmes.
Table of Contents
Chapter 1: Introduction..............................................................................................................4
Background:...........................................................................................................................4
Research Rationale:................................................................................................................4
Research Aims:......................................................................................................................6
Research Objectives:..............................................................................................................6
Research question...................................................................................................................6
Structure of the research.........................................................................................................7
Chapter 2: Literature Review.....................................................................................................8
Introduction............................................................................................................................8
Energy Consumption and production in Hong Kong.............................................................8
Energy Management System (ISO 50001)..........................................................................13
Macro analysis of Hong Kong industries and businesses....................................................15
Energy Management System Industry in Hong Kong.........................................................16
Situational Dynamics and drivers, restraints and opportunities...........................................27
Chapter 3: Research Methodology...........................................................................................29
Research philosophy............................................................................................................29
Research design....................................................................................................................29
Research approach...............................................................................................................30

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Data collection Method:.......................................................................................................30
Data Analysis Method:.........................................................................................................31
Ethical consideration............................................................................................................32
Summary..............................................................................................................................32
Chapter 4: Analysis of findings and discussion.......................................................................33
Chapter 5: Conclusion..............................................................................................................44
Chapter 6: Recommendation....................................................................................................46
References:...............................................................................................................................54

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Chapter 1: Introduction
Background:
Quality Improvement and planning within the organisation can develop the required
competency for ensuring the long-term success factors of the business procedure. Throughout
the quality improvement plan the existing operational procedure has to be assessed. The
strategic management procedure to improve the quality of the system is known as Quality
management (Shaikh et al. 2014). Various internal operations, external process, regulatory
guidelines along with the resultant impact on the workflow, inventory, performance,
infrastructure and client base are the core components that have to be considered in quality
improvement process. These interconnected and strategic business operations are collectively
called the Quality Management System or QMS of a business platform. Quality management
System or QMS also requires effective financial measurement, recording of evidence,
requirement assessment, interactive communication, workforce training, measurable activities
and information integrity. The most essential extensive part of the Quality management and
Improvement system is the Risk Assessment and Mitigation plan. Quality improvement is
able to increase the performance of organisational operation in one hand and reduce the
operational cost on the other hand. QMS is also a very effective business strategy aimed
towards the financial benefit, which can also ensure high return on investment while leading
the high profit margin. At the same time, in quality management system an organisation
needs an expletory market analysis along with examination of scopes.
Research Rationale:
Every nation foresees and seeks for a better economic condition and always tries to be
a larger power generation hub than the importer. It is a herculean task for any nation that also

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depends on government, public and private policies, political and sovereign power and the
overall regulations as well as energy preservation and production system of the country.
Energy Management includes the energy production, distribution, consumption, resource
utilisation and energy recycling. After the declaration of Green Energy management from the
government of Hong Kong, the Electricity management board, Hong Kong Science &
Technology Parks Corporation (HKSTP), Business Environment Council Limited (BEC) are
working together for alteration of their existing energy usage and management plan to some
extent (Wan et al. 2015). An appropriate improvement requires adequate research on the
existing situation.
Energy Management System Industry in Hong Kong is a high-speed growing sector.
This sector is becoming the important source of earning nationally. The energy management
system is divided into three categories, namely Domestic Energy Management, Industrial
Energy Management and Commercial Energy Management. Before investing on any specific
energy management policy and procedure the Hong Kong based business and industrial
organisations should have appropriate idea about the existing conditions, scopes of energy
management programmes. The research on energy management system can help the
organisations to identify the most suitable and profitable energy management procedure for
them. It will be also helpful for cost benefit analysis as well as to measure the financial
components, which should be considered before engaging in a new energy management and
quality improvement procedure. The research on energy management strategies, intelligence
data and beneficial implementation can make the market participants aware of the
competitive atmosphere. The strategic information on scope and market complacencies
related to energy management and quality improvement can help the organisations to focus
on their own strategy for betterment.

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Research Aims:
This research has aimed toward two goals which were associated with the quality
management and improvement system. The primary goal of this research is to explore the
existing energy management system of the Hong Kong city. The secondary goal of this
research is to find the scope of Quality improvement in existing energy management system
industry.
Research Objectives:
From the primary as well as secondary aim of this research it can be said that the target of
this research has to be segregated into different objectives. Aiming Towards exploring the
existing energy management system and finding more effective quality improvement
planning the research objectives are:
 To examine and assess the existing energy management system in Hong Kong
 To find out the most effective quality improvement planning considering the energy
management
 To develop a suitable implementation plan with required risk assessment and legal
considerations
Research question
Taking the research aims and objectives into account, the following research questions have
been developed:
 How the existing energy management system of the Hong Kong city works?
 What would be the most effective quality improvement planning for Hong Kong
Energy Management System?

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 How can be the improve quality management plan can be suitably implemented in
Hong Kong city energy management system?
Structure of the research
In this chapter 1 the purpose and background of this research have been discussed. In
the next section of this research which is Chapter 2, the literature review has been done as a
part of secondary data collection and draft development procedure. After that the
methodology of this research and the implementation methods of the research tools have been
discussed in chapter 3. In chapter 4 the data presentation analysis and discussion have been
done to formulate the conclusion. In next chapter, the conclusion of this research has been
presented depending on the findings and analysis. In Chapter 6, appropriate recommendations
have been delivered for the Hong Kong city energy management system.
Chapter
1Introduction
Chapter
2Literature review
Chapter
3Methodology of the reserach
Chapter
4FIndings, analysis and discussion
Chapter
5Conclusion
Chapter
6Recommendation

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Chapter 2: Literature Review
Introduction
The literature review section of this research will discuss all the basic components of
the topic energy management system and the scopes to improve the quality management in
Hong Kong. The online and offline articles, journals, books, government report and private
publication are used as data source for literature review. The aim of this literature review is
evaluating the research topic through reviewing several other research and documents.
Throughout the Literature review the key area of discussion will be the existing energy
consumption and production in Hong Kong, the international standardisation of energy
management system, macro analysis of Hong Kong industries and businesses, the Energy
Management System Industry in Hong Kong, Situational Dynamics and drivers, restraints
and opportunities.
Energy Consumption and production in Hong Kong
Around 65% of the total electricity in Hong Kong is consumed by the buildings. This
large amount of energy consumption is a result of operating domestic and commercial
electrical equipment and the installation of those equipment. The efficiency of those
equipment also contributes to the mechanical efficiency and subsequently the consumption of
electricity. In last 5 years the average electricity consumption per year is 41.74 billion kWh,
per capita 5,647 kWh. The majority of the energy consumed for Hong Kong city is derived
from external sources. The energy is either directly imported from the as the oil products and
coal products or produced from intermediate transformation process using imported fuels. In
terms of electricity, Hong Kong partially executes a self-produced energy scheme. The total
production of the electricity is 36bn kWh, 86% of the total usage of the country. Hong Kong
has very limited number of wind power generation turbine, setup in early 2006. At the same

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time, landfill gas has been also utilised as a fuel or energy source from 3007. Biodiesel has
been included as a source of energy from 2010. Besides, approximately 100% of the Energy
production in Hong Kong comes from Fossil Fuel (statistics.gov.hk 2019).
Total Per capita Compared to Western
average
Own consumption 41.74 bn kWh 5,646.87 kWh 5,402.93 kWh
Production 35.75 bn kWh 4,836.51 kWh 5,821.08 kWh
Import 11.62 bn kWh 1,572.03 kWh 729.98 kWh
Export 1.21 bn kWh 163.02 kWh 718.00 kWh
Table: Energy consumption and production comparison with Western average
Source: (ev.hkie.org.hk 2019)
In last 10 years the resource importation for energy production in Hong Kong became
biased to the oil products. On the other hand, the importing of coal products for energy
resource has reduced by about 7% from 2007. However, the direct electricity importation has
not been changed significantly (statistics.gov.hk 2019).

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Figure 1: Major imported energy commodities (ev.hkie.org.hk 2019)
An accurate energy management system should consider all types of energy
consumptions along with the consumption of electricity. The Hong Kong energy
consumption can be subdivided into three major segments namely Consumption of
electricity, Consumption of oil and consumption of Electricity (statistics.gov.hk 2019).

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As per the energy consumption record of Hong Kong since 2007 the total energy
consumption has been increased significantly. However, the electrical energy consumption
has been reduced from 52% to 47% compared with the other two energy sources. On the
other hand, the oil consumption has been increased by 6%. Instead of the decreasing rate of
primary energy requirements the final energy requirement has been increased since 2013.

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The total energy consumption in domestic purpose is gradually increasing. However,
the percentage share of industrial electricity consumption is decreasing. At the same time, the
commercial buildings contribute to the total electricity consumption by 66.2%, which makes
the total energy consumption by the building higher that expectation. When it comes to the
consumption of Gas, domestic consumption has the maximum intake of gas. However, being
very low consumer of gas, the industry based operation has increased the consumption of gas
by 2% from 2007 (ev.hkie.org.hk 2019).

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Energy Management System (ISO 50001)
The ISO 50001 Energy management System can be described as a standard which is
created by the International Organization for Standardization (ISO) and it defines the
requirements of the Energy Management System. The ISO standard specifies the various
requirements associated with the improving, maintaining, implementing, establishing the
Energy Management System. This enables organizations, countries to follow a systematic
approach for the consistent improvement in the energy consumption, energy use, energy
security, energy efficiency, energy performance. ISO 50001 aims towards the facilitation of
the establishment of the processes and the systems so the energy performance of the
organization is improved and it includes the consumption, energy efficiency use (Fiedler and
Mircea 2012).
Before the ISO 50001 there were other standards in the world, there have been around 14
local energy/regional energy management standards. Studies conducted have shown that the
previous energy management systems were having common features. The ISO 50001 has
vital improvements when compared with the European Energy Standard EN 16001:2010. The
Structure of ISO 50001 has been designed keeping in mind the ISO management system
standards of ISO 14001 (Environmental Management Systems) and ISO 9001 (Quality

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Management Systems). The three management systems are all based on the Plan-Do-Check-
Act (PDCA) cycle and the ISO 50001 integrates easily with these systems.
The two dimension that characterize the difficulties with the adoption of the ISO 50001 are
the organizational difficulties and the operational difficulties. There are however certain
benefits that pertain to the operational benefit and ecological benefit. Three sources of
motivation have been identified through and exploratory factor analysis which includes the
competitive advantage, ecology drivers, social requirements. The analysis conducted have
shown that the social requirements explain the operational difficulties and this result into
operational benefits. The ecological benefits are related directly with the ecology drivers.
Organizational difficulties have an inverse relationship with the ecological and the
operational benefits (Marimon and Casadesús 2017). The efficiency associated with the
energy usage enables nations and organizations to save money and at the same time helps in
the conservation of the natural resources. subsequently, this process helps in the prevention
of the natural resources. The extent to which the Energy Management Systems (ISO 50001)
positively contributes to saving the natural resources also helps in the stabilizing the climate
parameters. This on the other hand interests helps the international associations and the
governmental institutions to deal with the environmental resources.
Energy Management includes the energy production, distribution, consumption,
resource utilisation and energy recycling (Imes, Hollister and Allure Energy Inc 2013).
Effective energy management is not only providing the better opportunity to increase the
operational profit, it is also a basic requirement of every industry in this era of energy
conservation. In 2011, International Organisation for Standardisation or ISO released a new
energy conservation management guideline for every organisation irrespective of their size,
market position, revenue and geographical condition. This standardised energy management
guideline in known as ISO 50001, which specifies the requirements for establishing,

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implementing, maintaining and improving an energy management system (Althaher,
Mancarella and Mutale 2015.). The purpose of this standardisation is to enable an
organization to abide by a systematic approach in achieving continual improvement of energy
performance, including energy efficiency, energy security, energy use and consumption.
The ISO 50001 Energy management system has been fatherly raised, where an
organisation should demonstrate their improvement in the performance of electrical
equipments and electric consuming operation. There is no specific margin to quantify the
appropriate energy consecration limitation. It is more about a corporate responsibility that
every business organisation should have while executing the business operations, especially
which are linked with energy consumption. The three phases of this Energy Management
System are Planning, Implementing and Certification of ISO 50001 (Chen et al. 2013).
Macro analysis of Hong Kong industries and businesses
The economic situation, political stability, legal business policies and social
perception of the population have huge impact over the energy consumption of any nation.
The economic alteration as a result of globalisation influences these changes to some extent.
In case of Hong Kong, this city is connected to the wider commercial web as major value
exchange hub. As a result, the industrial development is also noticeable. Technological
development also defines the mechanical efficiency of the equipment and that regulates the
energy consumption for domestic, Industrial and commercial area.
The macro analysis of Hong Kong includes the Legal, Economic, Social and
technological considerations with regards to the Energy Management System. Hong Kong is
a Special Administrative Region of China, where the strict environmental laws and
regulations are enforced by the national as well as the local government and authorities. The
People’s Republic of China has a strong administrative infrastructure to ensure controllable

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energy consumption in the industrial, corporate and domestic equipment usage. On the other
hand the economic condition of the Hong Kong is stable and also progressive. The GDP of
Hong Kong is around 2358.62 billion HKD (Marzband et al. 2016). The government has also
a larger number of revenue share within this. The government revenue is HKD 586 billion.
Bing one of the most economical developed metropolitan, Hong Kong also has a huge
employment rate, that makes is place in the top 10 highly employed population in the world.
The 3.817 million populations are employed in Hong Kong where the unemployment rate is
3.29% (Marzband et al. 2016).
There are other certain factors in political environment contributes to the industrial
and commercial expansion in Hong Kong. Recently the president committed that that both
the international trading and international business tax will be reduced to improve the
business and industrial operation in this city. At the same time, the Hong Kong currency
HKD value has a stable growth. Its allows the national and the international level business to
invest adequately for their internal benefits, in terms of facilitating and quality. Hong Kong
has also a open global trade policies which enables their economy to emerge more deeply in
globalised growth. As per the commercial asset based compliances, Hong Kong has strong
property rights for private investors. Therefore, the persistent commitment to low tax rates,
limited government, a stable currency, openness to global trade and financial flows, strong
private property rights, and sensible regulation lead to lasting prosperity of the country.
Energy Management System Industry in Hong Kong
Energy Management System Industry in Hong Kong is a high-speed growing sector.
This sector is becoming the important source of earning nationally. In Energy Management
System and distribution process, of Hong Kong has progressed in many ways from past 5
years (Emsd.gov.hk 2018). At the same time the ever changing energy requirements and

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imposed energy management policies have huge impact on overall industrial, corporate and
economic growth of the nation. After the declaration of Green Energy management from the
government of Hong Kong, the Electricity management board, Hong Kong Science &
Technology Parks Corporation (HKSTP), Business Environment Council Limited (BEC) are
working together for alteration of their existing energy usage and management plan to some
extent (Han et al. 2014). According to the Guidelines on Energy Audit 2007 the government
of Hong Kong encouraged all the commercial buildings should implement the full BEEO
procedure. The Energy Audit 2007 also issued a set of codes named Energy Audit Codes that
are applicable on all EAC, CBSI and BSI buildings (Abushnaf, Rassau and Górnisiewicz
2016).
Energy Management Systems Industry in Hong Kong is a fast growing sector and can
become an important source of earning for the nation. Domestic energy management systems
market focuses on the development and enhancement of production facilities, storage and
distribution in the country. There has been a remarkable progress in the field of energy
management systems in the past 5 years. Hong Kong’s focus on energy sector has resulted in
growth of energy management systems in the country. Changing trends and energy
requirement needs in the country have impacted the energy management systems industry in
positive ways (Hannan et al. 2018).
With a low population of 7.19 million, Hong Kong is one of the biggest economies in
the world. Even though Hong Kong faced some economic problem in 2008 economic crisis,
the country has high per capita income of USD 38,124. The country also has a favorable
demographic structure needed for its fast scaled growth. Energy management systems market
is expected to grow at a CAGR of 42.38% till 2020 (Lee and Cheng 2016.).

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Present state of the Renewable Energy Development
Figure: Development of renewable energy by type
The above figure outlines the deployment of the Renewable energy in Hong Kong.
The figure demonstrates bioenergy as the most established form of energy (waste to energy)
and it contributes 98 percent of the overall renewable energy in the Hong Kong city. The
bioenergy is mainly comprised of two types. The first one is from the Hong Kong’s three
most active landfill sites that captures the biogas for the generation of electricity for the
production of town gas, its transport, leachate treatment, and the onsite uses. It has been
calculated that the quantity of the biogas that is captured and utilized is 12,600 m3/h. the
various closed landfills are also equipped with the utilizations and the gas collection facilities.
Secondly, the Hong Kong also has three production facilities that produces renewable fuel

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from the waste cooking oil. Due to a small local market, majority of the biodiesel produced is
exported to Europe. It is also important to mention that that an incineration plant with a
capacity of 14 MW steam turbine generation was opened in the year 2016 (Gov.hk 2019).
This specific plant treated a total of 11 waste water plant with a capacity of 1200t. The waste
water is treated and the sludge generated is used for the generation of electricity. Hong Kong
has a limited instalment of PV which accounts for 1.5 percent of the total renewable energy.
The application of the PV in such a scale is due to the Lamma Solar System which was first
commissioned in the year 2010 and it has a capacity of 550KW and later on this expanded to
1 MW by the year 2013. At the Lamma Power Station, the open spaces and the rooftops
installed a total of 8660 panels and the power station has the capacity of producing a total of
1100 MWh of electricity per year. Town Island is also a perfect example that is a part of the
Renewable Energy Supply Project. Town island is a remote island which is located off the
coast of Sai Kung this island previously had no access to electricity (Ma et al. 2014). The
inhabitants of this place relied heavily on the diesel generation units. To improve the access
to the electricity, the CLP group of Hong Kong in the year completed a renewable energy
grid that had the 179 KW of the PV. This had made the island to rely on the renewable
energy. Furthermore, there were other cases of renewable energy in which the rooftop areas
were placed with the PV systems. Like it has been seen that the rooftop areas of the Electrical
and Mechanical Services Department (headquarter) have a 200 KW system in the Science
Park.
The development of the wind energy is very limited in the Hong Kong region
(considering the fact that the overall there is only a deployment of less than 0.5 percent of the
renewable energy). In the year 2006, the Hong Kong government has commissioned the
Lamma Power station that has the capacity of 800KW turbine. The wind power Station of
Lamma generates an approximately 920 MWh of the electricity in a year. The Lemma project

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is one of the pilot projects and it is still the only wind power plant in Hong Kong (Gao, Yang
and Lu 2014). There are also other distributed wind energy systems in Hong Kong, like the
2.8 KW system installed in the EMSD headquarter, 12 KW system installed in the Ma Wan
theme park, 16 KW system installed in the Town Island. Hong Kong recently has developed
a hydro power plant at a small scale. The Tuen Mun Hydropower plant was set up in the year
2013 with a capacity of 500 KW. This innovative project takes into account of the elevation
at which the Tai Lam Chung Reservoir where water is stored and Tuen Mun Water Treatment
Works is the place where the water is treated. In the year 2015, the hydro power plant is
completed and it generated an approximately 3000 MWh of electricity per year. The hydro
power plant meets the 10 percent of the total energy demand of water treatment plant. The
renewable energy development projects in Hong Kong mainly comprises of the pilot projects
that are government initiatives and the initiatives of the power companies. The pilot projects
have made it easy to confirm the potential of Hong Kong towards the development of
renewable energy (Shu, Li and Chan 2015).
Barriers to the Renewable Energy Development
Hong Kong has high potential to become self-reliant in terms of renewable energy,
however there are several hindrances that can hinder the development of renewable energy in
Hong Kong. There are physical limitations that pertain to the lack to space and it is one of the
obvious barrier. It is important to mention that Hong Kong is a city with a very dense
population and it has very few flat areas. Majority of the renewable energy requires a lot of
dispersed areas for the effective generation of electricity. The small scale distribution factor
system is limited by the space factors and due to this reason the rooftops of the Hong Kong
buildings are utilized for various activities storage for the equipment, sport facilities,
playgrounds, gardens. Thus, the renewable energy systems that are placed on the rooftops
compete with the other alternative sources. Another major barrier is the lack of the policy

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support. The one country two system guarantees Hong Kong with the high level of the legal,
economic and the political system. Furthermore, the other regions of China are bounded by
the laws but the scenario is similar for Hong Kong (Zhang, Shen and Chan 2012). It is
important to note that the Hong Kong is not bounded by the carbon laws, and energy laws
and policies that are set up by the central government. Hong Kong has no central government
and there are carbon/energy targets set like the other regions. The political context of Hong
Kong has contributed towards the promotion of the renewable energy. There has been no
revision of the targets other than the one that are set since the target of 1-2 percent. Hong
Kong has recently released the Hong Kong Climate Action Plan 2030+ and this plan has
suggested that Hong Kong government can achieve a target of 3 to 4 percent by the year
2030. However, it is important to mention that the Hong Kong failed to achieve the target of
3 to 4 percent (Zhang et al. 2012). There is as such no policy that can support the distributed
system of renewable energy. This has led to the creation of the policy void and the
international experience shows that the renewable energy depends on the policy support
measures which includes the low interest loans, direct subsidies, renewable energy portfolios,
net metering and feed in tariffs. Hong Kong presently has no policy that can internalize the
various factors related to the carbon emission, like the emission trading or carbon taxes. This
strategy will greatly affect the renewable energy when Hong Kong is already competing with
the fossil fuel. However, in contrast the mainland China has established the feed in tariffs for
the wind and the solar energy but it is also moving towards the national carbon market. The
lack of the policy support will result into a delay in the procurement of the energy equipment.
In Hong Kong the slow approval processes and the complex planning requirements have led
to the inhibition of the development of the renewable energy in Hong Kong. For example, the
building regulations do not have the provisions of disallowing the installation of solar

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collectors and the solar panels so that the rood space is not utilized for other purposes. The
renewable energy system is not considered to be vital for the public service (Lo 2017).
Energy from sewage treatment
Sewage is normally treated as a waste and it is generated in Hong Kong due to the
everyday activity. Due to the advancement in technology, sewage can be converted into
energy effectively and efficiently through the application of the sewage treatment processes.
Before moving the waste to the land fill sites, the stabilization process is applied to the sludge
for the secondary treatment process and also for the removal of the harmful substances. For
the stabilization of the bio-solids a traditional process of anaerobic digestion is used which is
used for the treatment works worldwide. Organic materials of the sludge are broken down
into a less harmful inorganic product that has various kinds of gases and it is produced as
biodegradation of the organic materials (Poon 2016). Sludge is produced during the
secondary process and the basic principle of the sludge treatment is the decomposition of the
biological waste by biological organisms in the absence of oxygen. This process involves the
usage of different types of the microbes (methanogens and bacteria). The organic materials
are then broken down into much smaller substances. The organic materials consist of the
sludge that are broken down into the less harmful organic materials and along with it the
various kinds of gases also release due to the biodegradation of the organic materials. The
gases specifically are called as biogas. Biogas which is produced during the anaerobic
digestion of the sludge consists of 60 to 65 percent of methane by volume, 35 to 40 percent of
carbon dioxide, with small amounts of water vapour, hydrogen sulphide, hydrogen, nitrogen
and other gases. The heating value of biogas is generally calculated to be 22.4 MJ/m3. There
are four major secondary treatment works that produce the biogas and the four sites include
the Yuen Long Sewage Treatment Works (STW), Shek Wu Hui STW, Tai Po STW, Shatin
STW (Zan et al. 2018). The composition of gas at the four sites is in line with the normal

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ranges and is relatively high with the high levels of H2S at the Shatin STW and the Tai Po
STW. Suppression of the formation of the H2S or removal of the H2S gas to a very low levels
after the process of sludge digestion process is a mandatory process after the power
generation. Before the year 2006, the small proportion of the biogas was used as a fuel for the
generation of electricity and hot water boilers by the internal combustion engines for driving
the air blowers, drive pumps. Hot water from the exhaust boilers, fire engine jackets, and the
boilers and used for maintaining the sludge in the digestion process and also for space heating
in buildings. However, a huge portion of the biogas is flared and burned into the atmosphere
(Swann, Downs and Waye 2017).
Power technologies and combined heat- The technology of cogeneration is also called
the combined heat and power (CHP). Cogeneration can be descried as a technology that can
increase the efficiency of an energy recovery system by the process of simultaneous
generation of power and heat from a single source of energy. This technology includes a
range of equipment but it always requires a heat recovery system and an electricity generator.
This technology takes into account of the thermal energy recovery and the efficiency of the
CHP can also reach 90 percent. Biogas collected from the digester is stored in the gas holder
and in the next step it is compressed and purified by the process of moisture removal and
desulphurization. The Biogas is fed into the CHP plant at a constant pressure. The energy
which is stored in the biogas is then is then converted into mechanical energy and thermal
energy. This energy drives a synchronous generator and the production of electricity and
meeting the power demands required for sewage treatment. The CHP plants that are operating
in DSD have a capacity of 3650 kW, and it is being operated in the grip configuration. The
CHP plant in the Shatin has the largest capacity of 1.4 MW, is a unit that operates in Hong
Kong (Hosseini, Dincer and Rosen 2013).

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Micro-turbine- A micro-turbine is smaller in size in comparison to the regular sizes.
The operating principle of biogas combustion involves the creation of a high pressure of air
flow. The air flow makes the turbine propellers to turn the shaft and this drives the generator
for the production of the electricity. The design of such micro-turbine consists of
recuperators, single stage radial turbine, single stage radial compressor. Manufacturing and
design of the recuperators goes through the fulfilment of the stringent requirements due to the
fact the micro turbines operate under the extreme temperature differentials and high pressure.
The heat from the exhaust can also be used for the absorption of chilling, drying process,
space heating, water heating (Chen and Ni 2014). The efficiency of a typical electrical micro-
turbine ranges from 25 percent to 35 percent. Thus, when the micro-turbine operates in a heat
and power cogeneration combined system which has the efficiency of more than 80 percent.
It has been found that the turbine systems have several advantage over the reciprocating
engine generators like the higher power density, few moving parts and extremely low
emissions. Turbines are advantageous over the majority of the heat contained in the high
temperature exhaust and the heat generated from the waste in the reciprocating engine is split
into the engine cooling systems and exhaust. However, it is important to note that the
reciprocating engines respond quickly and the respond to the changes accordingly and they
are slightly more efficient. The micro-turbine efficiency has lower efficiency in comparison
to the reciprocating engines (Fong and Lee 2015).
Recent development of Combined heat and power generator- The first CHP generator
was commissioned in the year 2006 at the Shek Wu Sewage Treatment Works and later on it
was then connected with the CLP power distribution network. The total capacity of power
generation from the biogas is estimated to have reached 1590 kW. Furthermore, it has also
been seen that the generators have converted about 9.32 million m3 of biogas to 20.2 million
kWh of electricity. This is equivalent to an annual electricity consumption of 2,240

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households having 4 members. This in terms of money represents a savings of roughly HK$
20 million in electricity costs. Thus, it can be said that greenhouse gas emission has reduced
to a large extent after the installation of the CHP generators and it is equivalent to 14,000 tons
of carbon dioxide (Skorek-Osikowska et al 2014). By the end of 2013 and the early part of
2014, two other CHPs were commissioned which included the Tai Po STW and Shatin STW
that has the capacity of 630 kW ad 1400 kW respectively. CHP is considered to be the one of
the fastest growing installations in the DSD and along with it is one of the best ways of
turning waste to a resource and the process includes recovering the chemical energy from the
sewage sludge and chemical energy. DSD continues to explore the feasibility of adding CHPs
into the sewage treatment works for catering to the increasing demand of sewage treatment.
This is done to remain in sync with the latest developments of CHP and along with it also
view the enhanced energy saving (Kopanos, Georgiadis and Pistikopoulos 2013).
Commercial use of the landfill gas- Hong Kong produces 13,000 tonnes of solid waste
and it is disposed of in the three different strategic landfills which included the West New
Territories (WENT) landfill, Northwest New Territories (NENT), and Southeast New
Territories (SENT). The process of gas extraction takes place in an aerobic condition which
includes the putrescible waste in a landfill (Chen et al. 2016). The composition of a landfill
gas consists of
Table: landfill gas composition
Landfill gas composition Volume percentage (dry basis)
Methane 50 to 60
Carbon dioxide 30 to 40
Nitrogen up to 10 percent
Oxygen 1-2 percent
Hydrogen Sulphide Approximately 250 ppmv

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Organic sulphur Approximately 50 ppmv
Landfill gas collected from the landfill sites including the solid wastes is utilized for
the electricity generation. The electricity generated is used as a heating fuel to heat up the
leachate treatment plant and also for onsite consumption. The extraction of landfill gas is
controlled through an automatic system, so that the landfill can be transferred to the different
consumption units at set pressures and quantities. There was an agreement for the joint
development of the of a project aimed towards the use of the landfill gas as heating fuel in a
gas production plant located in Tai Po. Keeping in mind the cost-effectiveness issue, a
treatment unit has been set up in NENT so that he non-methane hydrocarbon, hydrogen
sulphide and carbon dioxide is removed from the raw landfill gas. The product gas also called
the Synthetic Natural Gas consists of the 80 percent of methane and it is delivered to the gas
production plant of Tai Po as a heating fuel through and underground pipeline. One of the
important aspect of Tai Po gas production plant is the stage where steam is formed and at this
same stage methane is converted to hydrogen (Woon and Lo 2013). The synthetic natural gas
used in the Tai Po gas production plant has led to the reduction of the 43,000 of naphtha per
year. This measure of naphtha is almost equal to 135,000 tonnes of carbon dioxide emission.
The energy supplied from the NENT is about 2510 TJ and this has helped in the emission of
53,000 tonnes of naphtha and at the same time has avoided the 166,000 tonnes of carbon
dioxide emission. There are a lot of hurdles associated with the selling of the electricity
generated from the landfill gas to the electricity grid. Due to the certain reason the power
generated from the landfill can be used only internally. It is important to mention that the
town gas that was previously distributed in Hong Kong is not a natural gas. While the natural
gas cannot be burned safely in the town gas appliances. Furthermore, landfill gas even if
upgraded to natural gas cannot be injected into the town gas for the industrial, commercial

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and household use. However, another way is to upgrade the landfill gas to natural gas and use
it to fuel the natural gas vehicles. The natural gas vehicle is not available in Hong Kong yet
and the introduction of the same might raise question on the feasibility, due to the lack of the
any kind of legislation and infrastructure (Woon and Lo 2014).
Situational Dynamics and drivers, restraints and opportunities
The commercial and large residential buildings contribute around 90% of total
electricity consumption in Hong Kong (Han et al. 2014). By enhancing the energy utilisation
efficiency and consumption emission can be effectively reduced. The Electrical and
Mechanical Service Department of Hong Kong has a voluntary Hong Kong Energy
Efficiency Registration Scheme to promote the procedure of increasing energy efficiency.
Before implementing the energy consumption efficiency plan, any organisation should have
the ability to control the energy intensive equipment of the building. The energy waste should
be identified and reduced through enteiliWEB’s link to the building energy usage automation
system (en-trak.com 2018). EnteiliWEB is an energy toolkit that provides a significant link
between monitoring and control. In energy management process an organisation should
develop a dynamic plan to execute the crucial operations namely High level commitment,
prepare an energy Policy, energy management plan, Energy Audit, Formulation of plan of
action, Implementation of the action plan, evaluate, energy saving achievement and return to
energy management change if required (Zhao et al. 2013).
In 2010 “Hong Kong Climate Change Strategy and Action Agenda” a public
consultation document was issued by the HKSAR Government. This document proposed that
the Hong Kong city needs to adopt alternative voluntary reduction target for carbon emission.
The proposed target increased the previous reduction target based on 2005, which was 50%
to 60% by 2020. This change looked forward from the previous projected target of China in

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2009 which was 40%to 45%. To achieve the declared target Hong Kong Government
published a new proposal which was a consultation paper for the Substantially Revamp the
Fuel Mix to generate electricity. This new technique of electric generation presented with
new mixing ration and targets, such as imported nuclear energy for 50%, natural gas for 40%,
coal for 10% and renewable energy for 3% to 4% of the total fuel volume. The target of this
new electric generation procedure was set for 2020 (epd.gov.hk 2019). Considering the
Fukushima event in 2011, the previous electricity generation target became difficult to
achieve properly while spending less amount of national assists. This new fuel mix ratio was
influenced by the public consultation paper from 9th March to 9th June, 2014, in order to
balance the competitive energy objective while taking care of the safety, reliability,
affordability and environmental performance.
Fuel Mix Policy Options Importation Coal and
Renewable
Energy
Natural Gas
Grid
Purchase
Nuclear
(Daya Bay)
Existing plan for fuel mix N/A 23% 55% 22%
Option 1: Purchasing from the Mainland
power Grid
30% 20% 10% 40%
Option 2: Using More Natural Gas for
Local Power Generation
N/A 20% 20% 60%
Table: Existing and Optional Fuel Mix Policy [source: epd.gov.hk 2019]
Along with the Fukushima event of 2011, several other reports also support the
proposed fuel mixing ratios. According to previous fuel mixing ratio proposed in 2012, the
mix of coal is 53%, imported nuclear energy is 23%, natural gas is 22% and Renewable
Energy is 2%. Through this mixing Hong Kong cannot achieve the objective of reducing
carbon emission by 50% within 2017. Therefore, the changes were required on an urgent
basis to find proper track for future electricity production. The new proposed mixing ration
and plan can provide better quality improvement and enhanced capabilities of eco-friendly
action. However, throughout the new implementation procedure and quality improvement the

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four policy objectives namely safety, reliability, affordability and environmental performance
can be preserved properly (Ng 2012).
Chapter 3: Research Methodology
Research philosophy
Research philosophy defines the perception of the research with which the research
can design the structure of the research and the procedure of data collection. In this research,
the focus is to measure the advantages and disadvantages of existing energy management
system in Hong Kong. It requires some statistical and numerical analysis along with the
rational cause and effect based discussion. The perception this research is to analyse the data
through logical and scientific data analysis, which includes the sensory organ based
examination and conclusion forming. Therefore, this research has a post positivist approach.
Along with this, this research also analysed the responses of the interviewee and analysed
their response through positivist perspective. Therefore, among positivism, interpretivism and
realism the research philosophy of this research is positivism.
Research design
The research design emphasises the structure of the research presentation and the
process of data collection and findings. The purpose of this research is exploring the existing
energy management systems in Hong Kong and the potential improvement through analysing
the scope and available strategies. This research does not have any specific pre-assumed or
pre-determined statement to prove or justify. This research did not describe any specific
phenomenon of case studies. Therefore, among the explanatory, exploratory or descriptive
research design, this research has chosen the exploratory research design to explore all

30FINAL DISSERTATION
aspects of the energy management strategy and pans that can be implemented in the Hong
Kong city.
Research approach
The approach of the research refers the presentation of the research outcomes. The
research approach also defines the data analysis technique as well. The research approach of
a research can be inductive or deductive. The purpose of this research is exploring the
existing energy management systems in Hong Kong and the potential improvement through
analysing the scope and available strategies. Deductive research approach allows the research
to justify any pre-determinants or variable relationships. On the other hand, the inductive
research approach based on the general observation and exploratory research manner. This
research does not have any specific pre-assumed or pre-determined statement to prove or
justify. Because of the exploratory design of this research, the inductive research approach
has been chosen as the appropriate research approach for this research. Aiming Towards
exploring the existing energy management system and finding more effective quality
improvement planning the research approach of this research is Inductive
Data collection Method:
The data collection method implies the process of collecting information from various
resources for analysing and formulating outcomes. The data collection method of a research
can follow 2 types of data collection procedures namely Primary data collection and
Secondary data collection. Aiming Towards exploring the existing energy management
system and finding more effective quality improvement planning the research has executed
both primary and secondary data collection process. For secondary data collection, the
research will collect data from online articles, journals, previously published study report,
government report and theoretical books. For primary data collection the research will

31FINAL DISSERTATION
conduct a semi-structured interview on 1 management level person from Business
Environment Council Limited, 1 person from Electrical and Mechanical Service Department
(EMSD) and 2 Environment and Energy Management experts. Apart from that Some case
study has been also done to formulate the practical supports for the various interventions in
energy management system.
Data Analysis Method:
Data analysis is the crucial part of any research irrespective of the purpose, structure
and approach of the research. The data analysis method allows a research to analyse collected
data and to formulate the outcomes accordingly. The conclusion of this research is
completely depends on this data analysis part. For numerical analysis the research can utilise
quantitative data analysis and for interpreting non numerical data the qualitative data analysis
is used. Aiming Towards exploring the existing energy management system and finding more
effective quality improvement planning the research has conducted both qualitative and
quantitative data analysis process. In qualitative analysis the research will follow the thematic
analysis pattern to analyse the interview based data and information. On the other hand to
measure the energy consumption, energy efficiency, energy management protocols and their
implementation scope the research has followed the mathematical and statistical analysis.
This numerical analysis is known as quantitative analysis. For more simplistic and positivist
approach the numerical findings have been presented in graphical format. It has allowed more
visualisation of findings and better conceptualisation. The case study analysis has been also
conducted to collect several supportive and argumentative data from the global energy
management system and energy consuming industry.

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Ethical consideration
Ethical consideration is one of the most essential part of any research that validates
the authenticity and the moral perspective of the conducted research process. This research is
based on literature review and an interview based data collection process. Therefore, in both
of this process the compliance with ethical issues is crucial. On the other hand, willingness of
the participants is the major concern of the interview. Before conducting the interview
session, the research will ensure that the data collection strategy would comply with the data
protection act and other ethical considerations. Apart from that, a justification paper of the
interview has been distributed within the percipients before conducting the interview. The
interview questions were developed in a way that could not heart anyone’s psychological,
social, cultural, emotional or intellectual perspective. At the same time, the respondents were
free to leave the interview session or to skip any question they want. The literature review
section has been developed by secondary data collection from valuable resource. All the
secondary resources are authenticated and peered review. Apart from that the online journal
and article based data collection did not violate the copyright and anti-piracy acts.
Summary
Aiming Towards exploring the existing energy management system and finding more
effective quality improvement planning the research philosophy is Positivism. This research
has chosen the exploratory research design to explore all aspects of the energy management
strategy and pans that can be implemented in the Hong Kong city. Because of the exploratory
design of this research, the inductive research approach has been chosen as the appropriate
research approach for this research. For secondary data collection, the research will collect
data from online articles, journals, previously published study report, government report and
theoretical books. For primary data collection the research will conduct a semi-structured

33FINAL DISSERTATION
interview on 1 management level person from Business Environment Council Limited, 1
personnel from The, and 1 person from Electrical and Mechanical Service Department
(EMSD) and 2 Environment and Energy Management experts. The research has conducted
both qualitative and quantitative data analysis process. In qualitative analysis the research
will follow the thematic analysis pattern and to measure the energy consumption, energy
efficiency, energy management protocols and their implementation scope the research has
follow the quantitative data analysis.
Interview questions:
How you perceive the Existing Energy production and consumption challenges in Hong
Kong?
How could these dilemmas can intervene in the economic, social and other major components
of Hong Kong?
How you think the quality management and improvement in fuel mixing can help the energy
management?
Do you want to recommend any particular tools for quality improvement procedure for
residences, commercial and business operation?
Chapter 4: Analysis of findings and discussion
Existing Energy production and consumption challenges
Regarding the shortage of indigenous energy resources, ensuring a stable, long-term,
safe, affordable and environmentally friendly energy supply become chiefly important to the
economic development of Hong Kong. The holistic approach is the most suitable approach to
ensure sustainability across the entire energy management process considering the primary
sources to energy supply and end term energy consumption. Affordable energy supply in

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Hong Kong has been already confirmed by the Government commitment and stakeholders’
engagement procedure. For cleaner power generation process various efforts are being
invested within the building sector involving various instruments abiding by the Scheme of
Control Agreement. This agreement refers the cooperation between Government and energy
companies, Buildings Energy Efficiency Ordinance, BEAM Plus and the Energy Efficiency
Labeling Scheme. The purpose of this agreement is to deal with energy consumption and also
the greenhouse gas emissions (Mesthrige Jayantha and Sze Man 2013). Air Pollution Control
Ordinance has already achieved 30 scores in Improvement of air pollutant emissions
reduction. Considering all the reduction strategies and outcomes for decreased greenhouse
gas emissions, constructive conditions have been already proposed with the introduction of
new fuel mix policy. The new fuel mixing strategy is ha huge shift from coal to gas for
electricity generation. It has the potential to make significant difference and improvement.
Another challenging outcome of climate change is increasing resilience of energy
infrastructure against extreme and destructive weather conditions and events. These events
can disrupt the entire energy supply and can even damage production plants and other
valuable distribution assets. The Recent extreme weather events in South China and the PRD
region is the best example, which is constantly pointing out the importance of the need for
greater adaptability and resilience of energy infrastructures. Holistic support for the
development of proper infrastructure and diversification of cleaner energy source different
advanced technologies are also necessary (Mah et al. 2012).
Existing Quality management and Quality Improvement
In terms of renewable energy, significant level of progress can be noticed in the Hong
Kong Electric Company Limited and CLP Power. Both of this associations are considered as
the largest investors in wind energy in Asia. They are also the largest foreign investor of wind

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power in India and China. However the irregular nature of solar and wind power sources is
becoming unable to be reliable for as a appropriate energy supply foundation in Hong Kong
city. Besides, the quality of on-shore renewable energy resources in Hong Kong’s has a
significant weak point that is the low availability of land. It is becoming the most critical
challenge for local as well as on-shore development of the renewable energy. Therefore, it is
clear that to make the interventions economically and technically feasible large scale green
power sources such as offshore wind farm or solar power is necessary (Hensen.com.hk 2019).
Future Prospect of Energy Management System through quality management in Hong Kong
One of the major targets of the government of Hong Kong is to reduce the energy
intensity by 25% within 2030 from the energy consumption level of 2005 level. In September
2007, it has been as set out in the APEC Leaders' Declaration on Climate Change, Energy
Security and Clean Development issued. As per the discussion and on this Annual Seminar,
building was identified as the largest energy consumer. It has been found that building
considering the commercial and residential sector consumes about 90% of the total electricity
used in Hong Kong. At the same time it generates about 66% of greenhouse gas emissions (as
shown in Fig.2). Therefore, efforts are being invested in cleaner power generation process
and in the building sector for energy efficiency through number of instruments including
Buildings Energy Efficiency Ordinance, establishment of BEAM Plus and the Energy
Efficiency Labelling Scheme to raise environmental impact awareness, promote green
building, energy efficiency and renewable energy. Under the Energy Efficiency Labelling
Scheme, for supply in Hong Kong the energy labels are required to be shown on the products
to inform consumers regarding their energy efficiency performance (Imes, and Hollister,
Allure Energy Inc 2013). At the same time, the strategies of reduction emissions reduction
strategies have already restricted the supply portal of traditional energy supply chain of Hong
Kong power industry. Besides, Air Pollution Control Ordinance has already introduced the

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Emission Performance Linkage Mechanism under the Scheme of Control Agreement. As per
this agreement Government has to restrict the private power generator and distributor
companies in order to reduce. This scheme includes both the CLP Power and The Hong Kong
Electric Company Limited and they are also agreed to support Government initiatives (Ning,
Wubulihairen and Yang, 2012). From past few years Various emerging and effective
technologies namely electrostatic precipitators, flue gas desulphurization and low NOx
burners has been introduced as the interventions within the traditional power generation
processes in order to achieve target of emission reduction. A higher permitted rate of the new
financial incentive schemes for renewable energy development has been already introduced
in 2008, which is capable to return of 11% benefit. Already various supplementary strategies
have been implemented in transportation especially in public transport. It helps to increase
the yearly market shares of the franchised public transportation (as shown in Fig.3) and to
impose the vehicle emission regulations like pre-Euro IV diesel commercial vehicles, retrofit
Euro II and Euro III and promoting the use of electric vehicles (Chen et al. 2013).
Sustainability challenges and Energy policy reforms
In the year 2010, The Hong Kong Special Administrative Region issued a
consultation document that proposed that Hong Kong must reduce the carbon intensity target
by the year 2020 and the target is of 50 to 60 percent. The proposal was in line with the target
2020 of China which was announced by the 2009, and the reduction was 40 to 45 percent of
carbon intensity. In order to achieve the target, the Hong Kong government went with the
mixing fuel for the generation of electricity by the year 2020. This has been done to
compensate for the renewable energy (3 to 4 percent), coal (10 percent), natural gas (40
percent), and import of renewable energy (50 percent). However, due to the Fukushima Event
in the year 2011, the targets that were previously set became difficult to achieve. A new fuel
mix ratio is brought into the scenario and it is framed to balance the overall energy objectives

37FINAL DISSERTATION
that depends on the environmental performance, affordability, reliability and safety (Mah et
al. 2012).
Tools of Quality Improvement
Servo Motor System for Injection Moulding Machines
Servo Motor System a specific kind of fuel injection system supported by a moulding
machine that allows any motor to reduce the energy consumption while increasing the
mechanical efficiency. In conventional operation system, the injection moulding machine is
used to confirm that the open-loop dosing oil pump, asynchronous induction motors and other
motor systems are in fully functional condition. The operational procedure of the Injection
Moulding Machine similar to the traditional fuel injection, while the total energy
consumption becomes less during the time of powered on. This Injection moulding process
can be segmented into several stages that include high pressure clamping, melting plastic,
plastic injection, cooling, packing, mould and Thimble. In every phase of this process,
different amount of operating pressure and flow rates of fuel are required (Quan, Quan and
Zhang 2014). These operations are done in different settings. The majority of the available
injection system has fixed volume pump hydraulic system. The fixed volume system can
provide a constant rate irrespective of the situational requirement of fuel. In this system, the
surplus volume of hydraulic oil passes through the relief valve reflux in high pressure
throttling. It causes only 60 to 70 percent of energy efficiency. At the same time, full-speed
hydraulic oil circulation makes long term performance benefit for the machine by reducing
the resultant frictional force. It also blocks the excess leakage of energy due to noise and
frictional force. As a result, with better mechanical efficiency the machine consumes less
energy than usual (Peng, Wang and Wei 2014).

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Infra-Red Heating System for Injection Moulding Machines
In industrial machinery, a huge amount of energy is consumed during the start-up
time. To make initial momentum and to reach the threshold temperature to perform
adequately the machine consumes a considerable amount of energy. Infra-Red heating system
preheat the machine to reduce the post ignition power consumption. It is also helpful for
domestic mechanical equipment that require huge power to start-up. In this system a Infra-red
gun is mounted with the fuel injection system either for petrochemical fuel or electrical.
Before starting up the ignition the Infra-Red gun throws Infra-Red ray to heat up the machine
before and during the ignition. An average consumption of a heavy electrical machine is
about 62.6 KW on regular basis. After the intervention of the Nano-electric heating the
consumption can be practically reduced to 38.8 KW. IF 26 days of operation is considered in
a month then the saving for this technology will be Q = (62.6-38.8) * 26 = 618.8KWH /
month (Oppelt et al. 2012).
Cloud server based energy management system
With the intervention of wireless network connection, the utility of Internet of things
has been increased significantly. This internet of things can be also utilised in the energy
management system for industrial, commercial and domestic use. In this system, a tracker is
attached to the electrical machine that tracks the electric consumption of the machine and
delivers the data to a dedicated server through real-time data sharing. User or the
administrator should have a user interface to access the dedicated server for energy
management. The user or administrator can view the current energy consumption in any
particular machine along with the temperature, operational efficiency and technical disputes.
Through this, the faults can be identified and the equipment can be repaired immediately

39FINAL DISSERTATION
without causing excess energy consumption. Sometimes this system can work as a plug and
play mode where the user does not need any additional software to use this technology (Lee
and Zomaya 2012).
Sub-Metering
Sub-Metering technique enable a post billing automated auditing system that enable
the user to view the eclectic consumption comparison with a detailed assessment report. The
Sub-metering system works as a simultaneous data processing system mounted on the meter
gauge of any domestic or commercial meter box. The data processing of Sub-Metering does
not interfere the original meter reading or gauging procedure. It just makes a copy of the
generated output and executes several assessment programs to develop audit report. This
audit report can help the user to even verify the accuracy of the utility bills. It can be also
used to allocating energy cost to specific departments or tenets. One of the most helpful
point of utilising this technique is it helps to determine the required changes in energy
consuming systems to enhance energy efficiency (Fu et al. 2015).
Direct Alcohol Fuel Cell Technology
Fuel Cell technology has already made its place as a most effective and alternative
energy conservation system for future. The direct alcohol fuel cell is an additive enhancement
of this technology that marked a new way of sustainably future. A conventional fuel cell is an
electrical device that is capable to convert chemical energy to electrical energy. In
conventional fuel cell, pure hydrogen is used as fuel and operated below 100-degree Celsius
temperature. Here the challenge is the storage and distribution of the hydrogen as the fuel
through commercial market. Therefore, alternative fuel in fuel cell technology would be more
beneficial and tangible. Introducing the DAFC or Direct Alcohol Fuel Cell can allow the
technology to be more friendly for commercial trading. In near future this technology can be

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used as fuel source in powered devices, such as electronic equipment, electronic cars and
others. As per the exiting progress it has been found either methanol or ethanol could be used
in DAFC from renewable sources (Yan et al. 2012).
Collecting these elements from natural renewable resources can make this technology
very sustainable and eco-friendly. DAFC also operates in very low temperature and low heat
transition. 24 DAFC can be used with same heat energy required for a existing fuel-cell that
can increase the diversity of potential application. However, the major challenge is lo
affordability of this technology. Due to the high operating cost of Platinum-based catalysts
the resultant price can be boosted above the average expense capacity of people. In this
situation utilisation of non-platinum electro-catalysts and Nano-structured electro-catalysts
based on non-noble metals can be less costly (Corti and Gonzalez 2013).
Paris Agreement and Hong Kong
The Paris Agreement on the climate change brings huge amount of opportunity a
challenges for the way in which the technologies, science and economies. A report from the
World Bank on development and climate change has showcased that holding temperature
below the 2 degrees will require a deep structural change in the world economy. Considering
all the above-mentioned facts, Hong King stands at the centre point of both the opportunity
and climate risk. Hong Kong is a part of China which is an emerging super-power and also a
super polluter that leads to a change in the leadership and self-interest. It is also important to
mention that the Hong Kong’s separate development leads to its comparison with some of the
most developed nations and cities. This provides an opportunity for Hong Kong with a
unique role. Hong Kong can easily connect with the leaders of the leading developed nations
when the provisions of city planning will be taken into account (enb.gov.hk 2019).

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The Paris Agreement came into force in the year 2016 and it succeeded the Kyoto
protocol. It was decided by the Government of Central People that the Paris Agreement will
be applicable for the Hong Kong Special Administrative Region. Complying with the Paris
Agreement, Hong Kong will accrue multiple benefits. Such benefits will include the richer
biodiversity with a climate resilient system, happier people, green jobs and green lifestyles,
more sustainable environment and less amount of waste, more leisure spaces with low carbon
transport, better health with cleaner environment, productive offices along with efficient
homes. Hong Kong has mentioned that will abide by the Paris Agreement timeline and at the
same time it will follow the reporting timeline. Due to this the Hong Kong has the developed
a 4T for the smooth performance of its Operational Framework. The Paris Agreement is an
ambitious plan or a treaty which has been agreed in the year December 2015, and it succeeds
the Kyoto protocol which will expire in the year 2020. On the earth day (22 April 2016),
China formally agreed and it ratified the same on the September 2016. On November 2016,
the Paris agreement came into force (Williamson 2016).
The main provision of the Paris Conference called for a collaborative global action to:
 The keep the global rise in temperature well below the mark of 2 degrees Celsius and
this target will be relative to the preindustrial levels. The main motive will be to bring
the temperature down to 1.5 degree Celsius.
 Achieve a peak greenhouse gas emission as quick as possible and a balance will be
achieved between the sinks and the carbon sources in the second part of the 21st
century. Thus, target is to achieve and reach a carbon neutrality between the year
2051 and 2100 (Savaresi 2016).
Gear up every 5 years

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The Global actions are entirely based on the bottom up approach, and it includes that
each and every party or the signatory will be devising their own ambitious plan. Such
ambitious plans are called the Nationally Determined Contributions (NDC) that has the both
the timelines and the targets. Each of the signatories to the Paris Agreement will be preparing
a NDC for 5 years and each of the NDC will present a progression over the previous year.
The targets are met through the process of transparent implementation so that each one of the
parties that are meeting the NDC obligations. The Paris Agreement requires the target
implementation in the immediate years for the following purposes (Bodansky 2016).
 By the year 2023, first global stock will be conducted and after every 5 years an
assessment will be conducted in a collective way.
 Facilitation of dialogue between the parties and the dialogue will be based on the
collective efforts put up towards the achieving a peak carbon of 1.5 to 2 degree
Celsius.
 Creation of transparent mechanism to facilitate an implementation plan for the Paris
Agreement (Brun 2016).
Collaboration
The Paris Agreement has called the parties to have cooperation with the Private
Sector, regions, cities, financial institutions, civil society so that a stronger and more
ambitious form of the climate actions can be taken.
China’s nationally determined contributions
The Nationally determined actions of 2030 include the following
 Increase the stock of the forest volume by 4.5 billion cubic meters and it is analysed
based on the 2005 level.
 Increase the share of the consumption of the non-fossil fuels to around 20 percent.

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 Reduce the emission of carbon dioxide by 60 percent of the GDP and it will be
analysed and based on the 2005 level.
 Reduce the emission of the carbon dioxide by 2030 and at the same time making the
best effort to initiate early (Gao 2016).
Along with all these Nationally Determined Actions China also pledged to have it
defences placed against the climate risks like the coastal areas, cities, ecologically vulnerable
areas, water resources, water resources, forestry, agriculture. This has been done to
strengthen the emergency response systems, and the early warning system and the disaster
reduction and prevention mechanism. The Paris Agreement is framed into a simple
framework and it can be operationalised and understood for the community, business and
government. Target setting with the timelines will ensure a transparent metric for the tracking
results and everyone will work together for working together and summarising the Paris
Agreement (Hof et al., 2017).
International aviation and shipping
One of the highlighting fact is that the Paris Agreement do not include the
International aviation and shipping. The issues pertaining to the climate change falls within
the purview of the International Maritime Organization and the Civil Aviation Respectively.
International Maritime Organization has mandated that the design of the new ships must have
a new design standards aimed towards the energy efficiency while the existing ships with the
operational design standards (Larkin et al. 2018). Meetings conducted in the year 2016, made
it mandatory for the ships to both record and report the fuel consumption as the beginning
point and it is asked that fuel consumption must be considered by the international shipping
to be more fuel efficient. Furthermore, the deliberation is to continue the endeavour of
reducing the carbon emission by the shipping industry and this plan is in line with the
meeting that took place in October. This has been done in the light to adopt an initial

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International Maritime Organization. For the aviation industry, International Civil Aviation
Organization devised a strategy that will implement a carbon offset as well as the carbon
neutral growth from the year 2020. The International Civil Aviation Organization took up a
scheme to infuse the technological advancement in fuel efficiency and also include
procedures in the reduction of the fuel consumption and also use the sustainable alternative
resources (Harris, Chow and Symons 2012).
Chapter 5: Conclusion
From the above discussion it can be concluded that Energy Management
System Industry in Hong Kong is a high-speed growing sector. This sector is becoming the
important source of earning nationally. The energy management system is divided into three
categories, namely Domestic Energy Management, Industrial Energy Management and
Commercial Energy Management. Before investing on any specific energy management
policy and procedure the Hong Kong based business and industrial organisations should have
appropriate idea about the existing conditions, scopes of energy management programmes.
The research on energy management system can help the organisations to identify the most
suitable and profitable energy management procedure for them. As per the energy
consumption record of Hong Kong since 2007 the total energy consumption has been
increased significantly. However, the electrical energy consumption has been reduced from
52% to 47% compared with the other two energy sources. On the other hand, the oil
consumption has been increased by 6%. Instead of the decreasing rate of primary energy
requirements the final energy requirement has been increased since 2013. The total energy
consumption in domestic purpose is gradually increasing. However, the percentage share of
industrial electricity consumption is decreasing. At the same time, the commercial buildings
contribute to the total electricity consumption by 66.2%, which makes the total energy

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consumption by the building higher that expectation. When it comes to the consumption of
Gas, domestic consumption has the maximum intake of gas. However, being very low
consumer of gas, the industry based operation has increased the consumption of gas by 2%
from 2007. Energy Management includes the energy production, distribution, consumption,
resource utilisation and energy recycling. Effective energy management is not only providing
the better opportunity to increase the operational profit, it is also a basic requirement of every
industry in this era of energy conservation. In 2011, International Organisation for
Standardisation or ISO released a new energy conservation management guideline for every
organisation irrespective of their size, market position, revenue and geographical condition.
This standardised energy management guideline in known as ISO 50001, which specifies the
requirements for establishing, implementing, maintaining and improving an energy
management system. Energy Management System Industry in Hong Kong is a high-speed
growing sector. This sector is becoming the important source of earning nationally. In Energy
Management System and distribution process, of Hong Kong has progressed in many ways
from past 5 years. At the same time the ever changing energy requirements and imposed
energy management policies have huge impact on overall industrial, corporate and economic
growth of the nation. After the declaration of Green Energy management from the
government of Hong Kong, the Electricity management board, Hong Kong Science &
Technology Parks Corporation (HKSTP), Business Environment Council Limited (BEC) are
working together for alteration of their existing energy usage and management plan to some
extent. According to the Guidelines on Energy Audit 2007 the government of Hong Kong
encouraged all the commercial buildings should implement the full BEEO procedure. The
Energy Audit 2007 also issued a set of codes named Energy Audit Codes that are applicable
on all EAC, CBSI and BSI buildings. The Paris Agreement on the climate change brings
huge amount of opportunity a challenges for the way in which the technologies, science and

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economies. A report from the World Bank on development and climate change has
showcased that holding temperature below the 2 degrees will require a deep structural change
in the world economy. Considering all the above-mentioned facts, Hong King stands at the
centre point of both the opportunity and climate risk. Hong Kong is a part of China which is
an emerging super-power and also a super polluter that leads to a change in the leadership
and self-interest.
Chapter 6: Recommendation
The technological costs are falling and the advancement in the technology means that
it is a 100 percent transition to the renewable energy in Hong Kong and it is possible by
2050. The Hong Kong city can tap the energy from the huge pile of land fill gas, and the
organic waste for the source of power and at the same time can import energy from abroad.
This at the same time will require a proper legislative framework for its implementation and a
plan or strategy that will incentivise the invest into the renewable energy sector. This is
possible only if the Hong Kong is willing to do it. It is also important to mention that the
Hong Kong had a limited amount of space for the large scale generation of energy. However,
there are possibilities and it will require an energy strategy along with a legislative
framework. A report published by the intergovernmental Panel on the climate change has
revealed that the 85 percent of the global energy will come from the renewable energy by the
year 2050 (scmp.com 2019). This timeline will be required to reach the zero carbon emission
and the also reduce the worst effects arising from the global warming. Due to the space
constraint it is not at all feasible for the large scale solar farms or the large scale onshore
wind. However, there are options of tapping the huge opportunities arising from the tidal
power and wave power to a carbon neutral biofuel waste to energy and carbon neutral.
Instead of capturing the methane from the landfills, which Hong Kong is already doing (Lu

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and Tam, 2013). Else a new German technology called the Hydrothermal carbonisation can
also be used as a viable option. The hydrothermal carbonisation is a process which turns the
organic waste into a form of non-polluting form of bio coal that can be used as a fuel. This
bio coal can also be used to fertilise soil during the agriculture, bio coals can be used in the
chemical process which will produces plastics and it will also provide fuel for the coal fired
power stations. Even if Hong Kong achieves 100 percent transition to the renewable energy,
still Hong Kong will be unable to achieve self-sufficiency and it would mean that the Hong
Kong has to import electricity from the China or other countries (Lu, Jordan and Berge
2012).
Hong Kong does not have its own oil fields still it imports oil from other countries.
Like the same way, solar power can also be brought from Australia or Gobi Desert. This can
be made easier because the electricity transmission and storage uses improved technology.
Biofuels are also the other viable options but this will depend on the development of an
electric transport system. The climate action plan for the year 2030 of Hong Kong has
revealed that the renewable energy will only provide 3 to 4 percent of the energy mix as the
current scenario only provides 1 percent of contribution. Hong Kong has implemented the
feed in tariff scheme that is although implemented on small scale is again without a proper
framework behind it (Lu and Law 2013). Such kind of schemes allow the renewable
producers to sell the power to the grid at a higher price. The feed in tariff model is an
international market that promotes the renewable and it has even been replicated worldwide
scenarios. This has helped in the reduction of the electricity prices and at the same time has
increased the renewable energy by about 6 percent in the year 2000 and by 32 percent by the
year 2015. In the past Hong Kong made a mistake by looking for the nuclear and the natural
gas and considering them to be cleaner fuels (Ma et al. 2014). Although natural gas is
relatively cleaner in comparison to coal and nuclear energy but they latter are destructive and

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polluting for the environment. Making new investment into the solar and wind energy is
cheaper in comparison to the nuclear plant, gas and coal plant. Every amount of investment
into the nuclear and the fossil fuel will turn into a stranded investment because coal will
vanish in future. Onshore wind prices and the solar process have fallen considerably since the
year 2010 by 73 percent and by a quarter respectively. The International Renewable Energy
Agency has exerted that the electricity from all the renewable sources will be competitively
priced in comparison to the fossil fuels by the year 2020 (Fong and Lee 2012).
It is important to note that the 100 percent shift towards the renewable energy is a
feasible option for the Hong Kong city but it will require the support of the government for
the necessary flow of funds. Huge amount of organic waste is generated from the leaf litter
and trees and furthermore there is a huge potential arising from the tidal energy generation
from the extensive waterways and coastline.
Figure: Hong Kong’s renewable energy potential [source: scmp.com 2019]
The figure states the scenario of potential energy development in Hong Kong and it
covers the bioenergy, onshore wind, offshore wind, and solar energy. Considering the fact

49FINAL DISSERTATION
that Hong Kong is located is located in the sub tropics and the city receives significant
amount of solar flux. It has been measured that in average the global horizontal radiation is
1.29 MWh/m2. There are several studies that have indicated that fact that potential for the
generation of electricity is through the solar water heating and solar photovoltaics in the city.
While it has been estimated that the Hong Kong has the potential for 6 GW of rooftop PV and
this could approximately lead to the generation of 6000 GWh electricity annually. This huge
amount of energy would be sufficient to fulfil the demand of 14 percent of the Household
which is compared with consumption of 43,912 GWh of electricity (Ma, Yang and Lu 2013).
There are other studies that have confirmed that the rooftop PV can generate about 1660
GWh/year and this percentage is about 6 percent of Hong Kong’s entire energy demand.
Furthermore, consultation studies along with the Hong Kong government have proved that
there is a potential of 5944 GWh/year and it includes the open spaces, airports, railways,
roads and rooftops (scmp.com 2019). In Hong Kong the solar water heating and the
production of hot water accounts to 4 percent of the total energy usage in Hong Kong. The
estimation also includes the liquefied petroleum gas, electricity, and town gas (produced from
the natural gas and naphtha) which are used as main energy sources. Different studies have
indicated that it is both economically attractive and technically feasible to utilize the solar
water heating in the several buildings in Hong Kong (Chow and Ji 2012).
Studies have emphasized on the potential of the wind energy in Hong Kong and a
case study included some conducted in Waglan Island in the southeast portion of the Hong
Kong Island. The main findings of the study have revealed that there is a good wind potential
and the wind speed ranges from the 5.8 m/s to 8.3m/s during the months of October. A
simulation model has revealed that a 37 m high wind hub with a wind turbine of 10KW with
a potential to operate for 6820 hours (which is roughly about 78 percent of time).
Furthermore, the wind hub generates 32,400 KWh of electricity. The quantity of land that has

50FINAL DISSERTATION
the wind energy potential for Hong Kong is 393 Km2 and the mostly the mountainous areas
have the largest wind sources. It is technically feasible for Hong Kong to install 1000 wind
turbines and place them at a density of 2.5 turbines/km2 (Gao, Yang and Lu 2014). This will
lead to the production of 2630 GWh of electricity annually and it will meet 6 percent of the
Hong Kong’s electricity demand. Wind turbines can also be installed on the rooftops of the
buildings and it is even estimated that 3000 GWH/year of the electricity can be generated.
Offshore winds also have significant potential for Hong Kong energy generation because 60
percent of the total area is covered by sea and the wind resources are higher for the sea in
comparison to the land. It has been estimated that the 7688 wind turbines can be installed in
Hong Kong water and it has the capability to generate 25,000 GWh of electricity in a year
(Shu, Li and Chan 2015). Thus, facilitating and fulfilling the demand of 57 percent of the
electricity demand of Hong Kong. This practice however, is impractical due to the fact that
the placement of the wind turbines is limited by the recreational areas, conservation, fishing,
and shipping routes. Thus, due to the presence of the constraints there is a potential of 11,280
GWh/year. It has been estimated by the Electrical and the Mechanical Services Department
that the area which is suitable for the wind development excluding the shipping channels,
parks and the shipping channels is 744km2 and the estimated production of energy is 8000
GWh/year (Ma et al. 2014).
Hong Kong has a limited number of farmland and due to this the potential for crop
plantation is minimal. On the other hand, the city produces a large amount of municipal solid
waste and on a daily basis which is landfilled. Thus, there remains an opportunity to generate
electricity from the waste. It has been estimated that on an average a 550 kWh of electricity
can be generated. There are also studies that pertained to the development of the zero-carbon
communities and buildings in Hong Kong by the usage of the renewable energy. Studies have
shown that the zero energy building can be achieved by using the renewable energy which

51FINAL DISSERTATION
includes the wind turbines as well (Fong and Lee 2012). The entire island can be made fossil
fuel free by using the solar, wind energy, and pumped hydro storage systems.
Energy management in buildings- In Hong Kong the consumption of energy in
buildings for more than 60 percent of the entire energy consumption in buildings in the past
decade. The majority of the energy consumed in the buildings is mainly due to the operation
of the systems and equipment including the various building service installations. It is
important to mention that efficient use of the energy can effectively reduce the energy
consumption in buildings and it can reduce the operation costs of the equipment and building.
The cooperation and the maintenance personnel, operation personnel, end-users, and the
building managers are required in the reduction of the energy consumption in buildings
(Shaikh et al. 2014). Energy management program can be defined as a process that has the
options of continuous improvement and it is comprised of the well planned actions. The
program of energy management in buildings includes a number of the steps. The steps
include high level commitment, preparation of the energy policy, energy management plan,
energy audit, formulation of the plan of action, implementation of the action plan, and
evaluate the energy saving achievements (Kailas, Cecchi and Mukherjee 2012). High level
commitment from the upper management is a vital thing. The energy management can only
be achieved only with the support of the senior management. The energy related activities
can be coordinated by an energy management team. Furthermore, the senior staff member
can be appointed as a team leader who will coordinating the entire program (Ee.emsd.gov.hk
2019). Preparation of the energy policy is a statement which will describe the goal of
performing energy management in a specific building. Energy management plan can be
framed after successfully forming the energy team and the energy policy. The energy
management will act as a management plan which will guide and assist in improving the
energy efficiency. The energy management plan will also include the cost and energy

52FINAL DISSERTATION
reduction targets and the organization of the management resources (Missaoui et al. 2014).
Energy Audit will be carried out for the monitoring the historic and the ongoing energy use
for the buildings. It will serve as an important step towards improving energy performance
and identifying the opportunities. The different aspects of the energy audit will include the
data collection, site survey and measurement, and benchmark. The energy audit for the
buildings leads to the identification of the energy management opportunities. It provides a
baseline data which is used in the implementation of the energy management opportunities
and a comparison can be made overtime (Krarti 2016). The different aspects of an energy
audit include: data collection defines how the gathering of information regarding the where,
how and when the energy will be used in the evaluation of the building energy performance.
This information will be collected from the meter buildings and the energy bills. Site survey
and measurement is a detailed action plan which will provide a present scenario of the energy
usage. The site survey and measurement will provide the means of improvement which will
be identified after the analysing the measured data (Ee.emsd.gov.hk 2019). Benchmark and
the indicators are the vital tools for managing energy usage that corresponds to the type of the
building. Through benchmarking the performances of the similar facilities are analysed and
the energy performance is measured. Benchmarking is an important step because through
benchmarking the deficiency in the present energy management practices can be identified.
Formulation of the action plans will be based on the results gathered from the energy audit
and the energy management opportunities will be implemented to ensure a systematic
process. The plan of action must contain the budgetary requirements, funding requirements
and an implementation table (Coakley, Raftery and Keane 2014). Implementation of the
action plan and the progress of its implementation is needed to be implemented to ensure the
desired energy target within the specific timeframe. The top down approach is followed so
that the action required for the active participation is carried out smoothly. Evaluation of the

53FINAL DISSERTATION
energy saving achievement and the energy usage data are reviewed regularly because it is an
important step towards the energy management. The energy management team of a building
can improve the energy management plan by updating the action plan, setting new
performance goals and identifying the best practices (Ee.emsd.gov.hk 2019).

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