August 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Hong Kong Energy Infrastructure Limited and there is no established relationship (financial or others) between CIC and Hong Kong Energy Infrastructure Limited.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the Hong Kong Energy Infrastructure Limited’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Hong Kong Energy Infrastructure Limited. The accuracy, comprehensiveness and trustworthiness of the information collected rests with Hong Kong Energy Infrastructure Limited. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. Hong Kong Energy Infrastructure Limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of Hong Kong Energy Infrastructure Limited, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on Hong Kong Energy Infrastructure Limited can only be used by Hong Kong Energy Infrastructure Limited and the Financial Institution. The distribution and publication are at the discretion of Hong Kong Energy Infrastructure Limited, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-022 |
|---|---|
| Certificate no. | SFCS-2021-006 |
| Date of application | 2021.12.22 |
| Company name | Hong Kong Energy Infrastructure Limited |
| Business registration no. | 68258914 |
| Company profile | Hong Kong Energy Infrastructure Limited (HEI) is the investment, consulting and technology application arm of Kum Shing Holdings, Hong Kong’s energy and mobility infrastructure specialist. HEI’s mission is to develop new business models based on the extensive knowledge Kumshing has accumulated over half a century through engaging in the development, operation and maintenance of infrastructure assets. Its goal is to contribute to the future of low carbon, resilience and sustainable urban living locally and overseas. In relation to energy projects, HEI seeks to combine its deep knowledge in conventional centralized power generation, transmission and distribution with newly acquired expertise in renewable and distributed power systems to achieve optimal energy efficiency and to ensure reliability and lower emission. In relation to mobility projects, HEI takes advantage of its extensive asset management experience in street lighting systems to develop applications and IOT solutions and to be a key player within the eco-system supporting Hong Kong’s smart city initiatives. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Hong Kong Energy Infrastructure Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Renewable Energy |
| Eligibility Criteria | Construction or installation of a renewable energy system which consists of 423kW PV modules with calculated energy yield of 435,000 kWh x year-1 LEED 4.1 BD+C Utility (CLP) Feed in Tariff (FiT) grid connection agreement |
| Project Categories | Energy Efficiency |
| Eligibility Criteria | Construction or installation of energy efficiency equipment, technology, product that reduce energy consumption, including shading optimizer, bifacial mono PV module application and Central Energy Management System (KS-Enerwise). Technology showcase includes our operated remote Distributed Energy project facilities, local RE system, weather station and public information display functions to provide, smart grid operation, local climate data, energy saving and carbon reduction information to the intended users and operators. Energy modelling and benchmark with base case of PV system |
Hong Kong Energy Infrastructure Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Hong Kong Energy Infrastructure Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Hong Kong Energy Infrastructure Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | NPC Waterproofing System Reinforcement and Photovoltaic System FiT Investment Project |
| Location | Hong Kong |
| Project description | System Capacity: 423kW; Technologies High-light: Shading Optimizer, Bifacial & Half-cut Mono Cell Module applications; Construction Period: Oct /2021 to Jun / 2022; Investment period: 7 years out of FiT scheme (up to 31st December 2021); Project Lifetime: 12 years Sustainable Site – Urban Heat-Island Effect Mitigation: Reduce 48,0456MJ / year solar heat gain from roof, as well as the cooling load of building whereby thermal insulation effect of added Epoxy waterproofing layer approx. 5,422m2 with shading area 2,005m2 of added 976 no. PV modules on top; and Energy Atmosphere – Onsite Renewable Energy: Installation of 423kW PV modules with calculated energy yield of 435,000 kWh x year-1. |
| Highlights of green elements and estimated environmental impact | To further enhance our premises community harmonization from live quality and safety. We fix and reinforce the damaged roof waterproofing system and finance it totally whereby the FiT earning of our new-build PV system; Create a positive image on green energy solution adoption and sustainability in district by providing a largest PV system in local (To Kwa Wan) region; Estimated decarbonization (CO2) 304.6Tg, equivalent to the CO2 removal capacity by 13,243 no. of trees, for the trees that commonly found in Hong Kong which are able to reach at least 5 metres in height. (estimation and conversion figures are referred to EPD’s “Guidelines to account for and report on GHG emission and removals for buildings in Hong Kong”; Central Energy Management System (KS-Enerwise) we provided includes our operated remote Distributed Energy facilities, local RE system, weather station and public information display to provide, smart grid operation, local climate data, energy saving and carbon reduction information from time to time; Project showcase and demonstration centre is to be constructed in premises by June of 2022, to aligns and advocates both private and public social stakeholder whole towards this sustainability goal. Not only we are establishing our own digital systems as an energy saving in building automation and green solutions applications. Our company also looking to incorporate with the government’s environmental policy digitization goals and make Hong Kong to be greener city. |
HEI proposes to raise Green Loan for NPC Waterproofing System Reinforcement and 423kW Photovoltaic System FiT Investment Project that falls into two of the Green Loan Principle project categories which are renewable energy and energy efficiency.
HEI explained the following eligibility criteria which the project fulfils GLP:
Renewable Energy – The project will be installed of 423 kW PV modules with calculated energy yield of 435,000 kWh x year-1.
Energy Efficiency – The project will provide the energy efficiency product, for example shading optimiser, bifacial mono PV module application an Central Energy Management System (KS-Enerwise), this system will attached with technology, including remote Distrusted Energy project facilities, local RE system, weather station and public information display functions in terms of smart grid operation, local climate data, energy saving and carbon reduction information to the intended users and operators.
Based on above information, we concluded that HEI project fulfils GLP requirements.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Hong Kong Energy Infrastructure Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
The Project selection will be based on contract requirements, LEED requirement, CLP requirements. The evaluation process will be conducted internal checking process with management system guidelines.
We consider that the applicant has well-defined internal checking procedures for project evaluation and selection.
Hong Kong Energy Infrastructure Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Hong Kong Energy Infrastructure Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Hong Kong Energy Infrastructure Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with internal policy
HEI confirmed that there is a dedicated account for the proceeds. Key transaction information, including transaction date, the principle amount of proceeds, repayment or amortisation profile, maturity date and interest, purchase contract and/or relevant project or sales contract will be recorded. A list of eligible projects and brief descriptions of the projects will also be included and it has internal mechanism in tracking the financial account.
Hong Kong Energy Infrastructure Limited is committed to transparent reporting and will publish relevant project documents within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, Hong Kong Energy Infrastructure Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Renewable Energy |
| Metrics | Energy Yield per unit area of installation (kWh/m2 x yr-1); Energy yield per kW PV Installation (kWh/kW x yr-1); |
| Methodologies | BS7671; LEED version 4.1; and Energy code of energy ordinance 610 |
| Project Categories | Energy Efficiency |
| Metrics | Carbon reduction yield per unit area of installation (-CO2/ m2 x yr-1); Carbon reduction yield per kW PV Installation (-CO2/kW x yr-1); Life Cycle Cost LCC (For contracted period 22 years); Life Cycle Assessment LCA (For contracted period 22 years); Life Cycle carbon reduction per unit of monetary spend (HKD) = LCA/LCC (-CO2/HKD) |
| Methodologies | S7671; LEED version 4.1; and Energy code of energy ordinance 610 |
We confirmed that HEI has committed to continue to perform impact reporting in the aspects of renewable energy and energy efficiency.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-022, Certificate no.: SFCS-2021-006) of the CIC Sustainable Finance Certification Scheme with validity from 27-08-2021 to 26-08-2023 .