Environment chief calls for private participation in running district cooling systems

The Environment and Ecology Bureau will submit the review results of the district cooling system in Hung Shui Kiu/Ha Tsuen and San Tin Technopole to the Legislative Council in the second quarter, Secretary for Environment and Ecology Tse Chin-wan said.

The government is reviewing the scale and delivery mode of the systems in the two new development areas, which could save at least HK$40 billion in construction costs, according to the latest Budget.

In a blog post on Sunday, Tse explained that district cooling systems centralize cooling production and distribute chilled water or air to multiple buildings within a region.

He said such systems offer cost-efficiency advantages and represent a promising business opportunity.

However, he noted that the current model, where the government directly builds and operates these systems, excludes private sector participation and requires significant public funds.

“The government’s initial efforts in developing and operating district cooling systems have demonstrated their feasibility and set an example,” Tse said.

“It’s time to explore better approaches for building and operating these systems in future development areas, breaking away from past practices to leverage private sector innovation and investment.”

Tse said a district cooling system is operating in Kai Tak while systems in Tung Chung and Kwu Tung North are under construction. 

The planned systems for Hung Shui Kiu/Ha Tsuen and San Tin Technopole, still in initial or planning stages, are set to become the largest of their kind in the city, with projected government costs reaching tens of billions of Hong Kong dollars.

(Ayra Wang)