Hong Kong's Executive Council on Tuesday approved CLP Power Hong Kong Limited extending the contract for supply of nuclear electricity from Daya Bay Nuclear Power Station for another term of 20 years from May 7, 2014, to May 6, 2034, according to the local government website.

CLP Power has currently contracted for 70 percent of the electricity output of Daya Bay for supply to Hong Kong which accounts for about one-third of its local demand. The term of the supply contract will expire on May 6, 2014.

Hong Kong's Secretary for the Environment Edward Yau said a reliable, safe and efficient electricity supply that can adequately cater for the demand for electricity is essential for the overall economic development of the city.

CLP Power's extension of the contract for electricity supply from Daya Bay provides an assurance of electricity supply at reasonable and affordable prices for Hong Kong consumers, and also a continued supply of cleaner electricity to Hong Kong, which will help alleviate air pollution and greenhouse gas emission locally, he added.

By a Memorandum of Understanding on Energy Co-operation (MOU) signed between the National Energy Administration of the Central People's Government and the Hong Kong Special Administrative Region Government on Aug. 28 last year, the two sides indicated support for the current supply of nuclear electricity to be extended for a further term of 20 years upon expiry in May 2014.

The MOU envisages that the supply quantity will not be less than the current level in principle while pricing will be agreed on commercial principles among the relevant enterprises.