Chapter 592 - Overturning and Starting Over

After the meeting, Xia Yu allowed Han Tianze to lead the way to inspect the power plants under the Xiangjiang Electric Light Company.

Since the establishment of the company, the locations and sizes of its power plants had undergone numerous changes. The first power plant, the Wan Chai Power Station, was located on Star Street in Wan Chai, with an initial generation capacity of only 100 kilowatts. It supplied power to Sun Street, Moon Street, Star Street, Bright Street, and Electric Street in Central and Wan Chai on Hong Kong Island. The plant was eventually demolished in 1922.

Following this, a new power station was constructed at Fortress Hill, North Point, and began operations in 1919 with an initial capacity of 3,000 kilowatts. It has since been expanded several times. However, as demand for electricity on Hong Kong Island grew, the North Point plant alone could not meet the island's needs. To address this, another power plant was built at Ap Lei Chau in the Southern District to supply electricity from both the north and south.

The power plant at Ap Lei Chau, built in 1968, remains an advanced, fully computerized facility. Three phases of the project have already been completed and commissioned, with one final phase pending. Upon completion, the plant's capacity will reach 1,061 megawatts (MW).

Unfortunately, as an oil-fired plant located near an urban area, the Ap Lei Chau station causes significant pollution. Considering Hong Kong Island's overall urban planning, the Hong Kong government requested that the Hong Kong Electric Company gradually close the Ap Lei Chau station. To compensate, the government made a generous offer, allowing the company to choose a new site for a replacement plant, provided it complied with all regulations. Eventually, the company selected a site on Lamma Island for this new power plant.

Xia Yu took a quick look around the Ap Lei Chau plant before traveling to Lamma Island to inspect the new plant, already under construction. It was clear that the Ap Lei Chau plant would be phased out. Xia Yu decided that, once the Lamma power plant was operational, both the outdated North Point and Ap Lei Chau plants would be demolished and replaced with commercial developments to maximize their value.

Soon, the group boarded a boat to Lamma Island.

Lamma Island is the third-largest island in Hong Kong, with an area of about 14 square kilometers. It is located in the Outlying Islands District and was originally known as 'Pok Liu Chau.' Because the island lies to the south of Hong Kong and resembles the Chinese character '丫' (ya), it was later named 'Lamma Island' (南丫島).

Xia Yu knew that Zhou Leunfa, currently under the umbrella of Universal Brokers, was born on Lamma Island.

The site of the new power plant, known as Pineapple Spit, is located in the northwest part of Lamma Island. This location was chosen due to its proximity to Hong Kong Island, which reduced the cost of laying cables, and its lack of nearby residents, which saved on demolition and relocation costs and minimized disruptions to local life.

As they arrived at the busy construction site, Han Tianze immediately began to brief Xia Yu: "Boss, according to our negotiations with the Hong Kong government, the Lamma Power Station covers an area of 50 hectares. The original plan is to develop it in three phases. The first phase is currently under construction, expected to take five years, and will consist of three 250MW oil-fired generating units, for a total generating capacity of 750MW."

He watched Xia Yu's face closely for a reaction.

Xia Yu nodded slightly, his expression calm, giving nothing away. He was satisfied with the government's willingness to grant 50 hectares of land—industrial land, but still a significant area with great future potential.

To put it in perspective, Lamma Island covers just 14 square kilometers, or 1,400 hectares. The power station would occupy one twenty-eighth of the island's total area.

"Let's go inside and take a look," Xia Yu said.

As they proceeded, they saw that the first phase of the project had already used 15 hectares of land, all of which had been leveled with foundations laid. Some flat-roofed structures were already standing, and a massive cooling tower was halfway through construction.

Under a large shed nearby, numerous steel frames were stored. Noticing Xia Yu's gaze, Han Tianze explained, "Boss, these are materials for the transmission towers. They've only partially arrived, but construction will start as soon as we have everything."

"Hmm," Xia Yu acknowledged. "The generator sets haven't arrived yet, have they?"

"No, not yet," Han Tianze replied. "The generator sets were ordered from Mitsubishi Electric in February, but they haven't been completed."

Xia Yu continued, "What's the total construction period and design capacity for the power plant?"

"The initial plan is to build in three phases, with a total generating capacity of 3,500 megawatts. At the current pace, it will take until around the year 2000 to complete," Han Tianze responded.

Xia Yu frowned. "That's too slow!" he declared.

It was only 1979, but the Lamma Power Station was planned to take 20 years to complete—far too long in Xia Yu's vision of taking the Hong Kong Electric Company to compete with global power giants. Waiting two decades to build the foundation would be a significant delay.

Moreover, even when fully completed, a capacity of 3,500 megawatts, or 3.5 million kilowatts, would mean a theoretical peak daily power generation of 84 million kilowatt-hours (kWh). However, power plants rarely operate at full capacity year-round; the actual output typically ranges between 30% and 40% of peak capacity.

Based on this calculation, once fully built, Lamma Power Station would have an annual power generation capacity of 9.2 to 12.2 billion kWh. This would not be enough to meet Hong Kong Island's electricity demand, which Xia Yu vaguely remembered would reach around 50 billion kWh in later years.

Hong Kong's local power generation capacity was simply insufficient. Even with both the Hong Kong Electric Company and China Light and Power combined, total output was under 40 billion kWh. To meet demand, an additional 10 billion kWh had to be supplied from the Daya Bay Nuclear Power Station.

Given this scenario, it was clear that the Lamma Power Station, once completed, would not be enough to meet Hong Kong Island's electricity consumption, let alone supply power to Kowloon, the New Territories, or even Guangdong Province.

When the current plan was developed, the management had been shortsighted, focusing only on Hong Kong Island and its property sector. Now that Xia Yu was in charge, he saw that the original plan was fundamentally flawed and needed a complete overhaul.

Regardless of whether or not he acquired China Light and Power in the future, the Hong Kong Electric Company needed to be strong enough to dominate the electricity market in Hong Kong. Any surplus capacity could be sold to Guangdong Province, which, during the 1980s and 1990s, suffered from severe electricity shortages—presenting many opportunities.

Turning to Han Tianze, Xia Yu said firmly, "Stop all construction on the power plant for now. We need to re-plan and redesign everything. The current plan is not acceptable!"

Han Tianze's face turned pale. He hadn't expected such a strong reaction from Xia Yu, who was now overturning the entire construction plan, a clear sign of his deep dissatisfaction.

Without questioning why, Han Tianze immediately responded, "Understood, I'll stop the construction right away."

"Wait," Xia Yu interrupted. "It's not that urgent. Listen to me first."

He continued, "The plant will now use coal-fired generator sets, and no more oil-fired units. If possible, we could also consider gas-fired generators. The total capacity should be increased to 6,000 megawatts, and under no circumstances should construction take more than five years. The goal of Xiangjiang Electric Light Company is to become a multinational power giant, and we cannot waste time on a single project."

"Expand the power construction department and create a strong team to build the Lamma Island power station with full force. All facilities must be developed simultaneously, without worrying about costs."

"Cancel the original order to Mitsubishi Electric for the oil-fired units. The penalties for cancellation are a small price to pay. We need to re-tender and make sure we get the best generator sets available."

"Fifty hectares is not enough. After we have a new plan, apply to the Hong Kong government for additional land. I'm confident they will accommodate us to solve Hong Kong's electricity needs. If there are any difficulties, report to me immediately."

Xia Yu's barrage of orders left Han Tianze feeling dazed but deeply inspired. The new boss's plan was ambitious—far more so than anything the company had envisioned. Xia Yu was indeed worthy of his reputation as a rising star in Xiangjiang; his vision and approach were extraordinary.

Only by following a leader like this could one find true motivation!

Filled with newfound determination, Han Tianze declared, "Boss, I'll get started on the new plan right away. I won't let you down! If I can't finish, I'll resign!"

He spoke loudly, his face flushed, making a bold commitment to prove his dedication. The boss's ambitious vision was clear, and he was ready to do whatever it took to achieve it!