Fuel woes a wake-up call to Hong Kong SAR on energy security – Opinion

This photo taken on Sept 17, 2024 shows a container terminal in Hong Kong, South China. [Photo/Xinhua]

A quiet revolution is rolling through the Hong Kong Special Administrative Region”s government compounds. As recently reported, over half of the city’s bureau directors and secretaries have swapped their traditional sedans for Chinese-made electric vehicles, with BYD’s Denza brand leading the charge. This shift in the official vehicle fleet is a commendable, symbolic nod toward sustainability. Yet it also casts the city’s broader, challenging energy landscape into stark relief. While our officials are sending out a “green action” signal, Hong Kong finds itself dangerously adrift at the proverbial sea, buffeted by a raging global energy storm that exposes the city’s fragile and costly dependence on imported fossil fuels.

The ongoing conflict in the Middle East has brutally underscored this vulnerability. As one analysis details, the blockage of critical choke points like the Strait of Hormuz has sent oil prices soaring. Hong Kong, entirely reliant on imported refined products with no domestic refining capacity, now suffers the unenviable distinction of having the world’s most expensive gasoline and diesel fuel. The ripple effects are crippling: Transport operators slashing routes; airlines and shipping lines imposing emergency surcharges; and the public groaning under the weight of exorbitant fuel costs. This is not a temporary squeeze; it is a systemic defect. The crisis reveals an energy supply model that is not only prohibitively expensive — burdened by layers of intermediaries, astronomical land rents for stations, and opaque pricing — but also existentially risky, tying our city’s livelihood to volatile geopolitics thousands of miles away.

Contrast this with the strategic foresight demonstrated across the border. While Hong Kong grapples with price shocks, the Chinese mainland has been steadily executing a long-term energy security blueprint. Its investment is twofold: securing robust traditional supply chains while aggressively pioneering the new energy frontier. As noted, China’s Sinopec is a global refining behemoth, with world-class facilities dotting Guangdong province’s coastline near Hong Kong. More critically, the national 15th Five-Year Plan (2026-30) prioritizes energy security through a sweeping green transition. China leads the world in solar, wind, and hydropower capacity, and in the production and adoption of electric vehicles and their supply chains. This dual-track national strategy provides a cushion against external shocks that Hong Kong sorely lacks.

Hong Kong’s path forward for achieving energy security must therefore be one of urgent convergence with this national strategy. Our symbolic adoption of EVs must catalyze a foundational overhaul of our energy supply architecture. We must move beyond being a passive, price-taking consumer and become an active, integrated partner in a regional green-energy system.

First, we must deepen tangible supply cooperation with the mainland side of the Guangdong-Hong Kong-Macao Greater Bay Area. The solution to our refined fuel crisis lies literally next door. We should formalize long-term procurement agreements with mainland refiners in Guangdong, bypassing cost-additive third parties. As proposed, the SAR government could act as a bulk buyer or establish transparent pricing mechanisms to ensure stability and fairness. The discussion of building a local refinery, while a longer-term prospect, also warrants serious study for strategic reserve purposes.

Second, Hong Kong must leverage its unique strengths to accelerate the green transition. Our financial hub must become the region’s premier green finance center, funding the massive infrastructure projects needed for renewable energy and grid modernization. Our research institutions should collaborate with mainland tech giants on next-generation solutions — advanced energy storage, smart grids, and green hydrogen. The goal is to integrate Hong Kong into the mainland’s burgeoning new energy industrial chain, not just its power grid.

Third, we must reform the high-cost structures that make energy unaffordable. This includes revisiting land policy for fuel stations and energy infrastructure to reduce the rent burden that ultimately hits consumers. Adoption of models like open-franchise fuel retail could also introduce competition and lower costs.

The switch to EVs in our government parking lot is a start. But the real test lies in powering the entire city — its ships, its planes, its industries, and its homes — with secure, sustainable, and affordable energy. The Middle East crisis is a painful lesson. Hong Kong can no longer afford to outsource its energy security. By proactively integrating with the national green strategy and the Guangdong-Hong Kong-Macao Greater Bay Area’s resources, we can transform this vulnerability into a new pillar of economic resilience and environmental leadership. The time for a decisive shift is now, before the next crisis leaves us stranded.

The author is a veteran journalist based in Hong Kong.

The views do not necessarily reflect those of China Daily.

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