Critical Success Factors for integrating renewable energy development in a country with 2 systems: The case of Pearl River Delta and Hong Kong SAR in China
2017
Lam, Patrick T.I. | Yang, H.X. | Yu, Jack, S.
China is well ahead in the renewable energy (RE) sector, both for its manufacturing and installation capabilities, although grid connection is lacking behind. Whilst most generating sites are in the northeastern and northwestern provinces due to geography, the south has a role to play. Zooming down the Pearl River Delta (PRD), with Hong Kong Special Administrative Region at its estuary, complementary effects on RE have been taking place due to “One Country – Two Systems” since 1997, when the latter's sovereignty was reverted to China. A study was carried out on the challenges facing the RE sector in the PRD, its Critical Success Factors and collaborative opportunities. Quantitative survey findings indicate keen competition, grid connection and skilled labour shortage problems. Critical Success Factors include the availability of capital and grid connection incentives, customers’ satisfaction, R & D capability, grid stability, safety and competitiveness with fossil power. Qualitative interviews confirm Hong Kong's edge as a market economy having a trusted legal environment, since it can attract mainland RE enterprises in public listing, financing, exhibiting, providing insurance services and a platform for intellectual property protection and trading, both for their domestic and overseas ventures. Maintenance of status quo (i.e., stability) is important.
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