Malta’s 2030
National Energy and Climate Plan
December 2019
CONTENTS
CONTENTS ................................................................................................................................... 1
LIST OF ABBREVIATIONS ............................................................................................................... 1
LIST OF TABLES ............................................................................................................................ 3
LIST OF FIGURES ........................................................................................................................... 5
1 OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN ........................................................ 1
1.1 EXECUTIVE SUMMARY ............................................................................................... 1
1.2 OVERVIEW OF CURRENT POLICY SITUATION ............................................................... 7
1.3 CONSULTATIONS AND INVOLVEMENT OF NATIONAL AND EU ENTITIES AND THEIR
OUTCOME .............................................................................................................................. 15
1.4 REGIONAL COOPERATION IN PREPARING THE PLAN ................................................. 25
2 NATIONAL OBJECTIVES AND TARGETS ................................................................................. 26
2.1 DIMENSION DECARBONISATION .............................................................................. 26
2.1.1 GHG EMISSIONS AND REMOVALS............................................................................. 26
2.1.2 RENEWABLE ENERGY ............................................................................................... 29
2.2 DIMENSION ENERGY EFFICIENCY .............................................................................. 45
2.3 DIMENSION ENERGY SECURITY ................................................................................ 50
2.4 DIMENSION INTERNAL ENERGY MARKET .................................................................. 52
2.5 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS ................................. 59
3 POLICIES AND MEASURES ................................................................................................... 61
3.1 DIMENSION DECARBONISATION .............................................................................. 61
3.1.1 GHG EMISSIONS AND REMOVALS............................................................................. 61
3.1.2 RENEWABLE ENERGY ............................................................................................... 64
3.2 DIMENSION ENERGY EFFICIENCY .............................................................................. 78
3.3 DIMENSION ENERGY SECURITY ................................................................................ 89
3.5 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS ............................... 107
4 CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES AND MEASURES ........... 110
4.1 PROJECTED EVOLUTION OF MAIN EXOGENOUS FACTORS INFLUENCING ENERGY
SYSTEM AND GHG EMISSION DEVELOPMENTS ...................................................................... 110
4.2 DIMENSION DECARBONISATION ............................................................................ 120
4.2.1 GHG EMISSIONS AND REMOVALS........................................................................... 120
4.2.2 RENEWABLE ENERGY ............................................................................................. 144
4.3 DIMENSION ENERGY EFFICIENCY ............................................................................ 150
4.4 DIMENSION ENERGY SECURITY .............................................................................. 153
4.5 DIMENSION INTERNAL ENERGY MARKET ................................................................ 158
4.6 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS ............................... 160
5 IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES ........................................... 168
5.1 IMPACTS OF PLANNED PAMS DESCRIBED IN SECTION 3 ON ENERGY SYSTEM AND GHG
EMISSIONS AND REMOVALS ................................................................................................. 168
5.2 MACROECONOMIC AND, TO THE EXTENT FEASIBLE, THE HEALTH, ENVIRONMENTAL,
EMPLOYMENT AND EDUCATION, SKILLS AND SOCIAL IMPACTS OF THE PLANNED POLICIES AND
MEASURES ........................................................................................................................... 206
5.3 OVERVIEW OF INVESTMENT NEEDS ........................................................................ 218
5.4 IMPACTS OF PLANNED PAMS ON OTHER MEMBER STATES AND REGIONAL
COOPERATION ..................................................................................................................... 228
ANNEX I – DETAILED SUMMARY OF PUBLIC’S VIEWS DURING PUBLIC CONSULTATION PROCESS 229
ANNEX II – NOTIFICATION OF DETAILED METHODOLOGY TO IMPLEMENT ARTICLE 7 OF DIRECTIVE
2012/27/EU ............................................................................................................................. 246
LIST OF ABBREVIATIONS
CCGT Combined Cycle Gas Turbine
CHP Combined Heat and Power
DSO Distribution System Operator
EED Energy Efficiency Directive
EIA Environmental Impact Assessment
EMD Electricity Market Directive
EPBD Energy Performance of Buildings Directive
ESD Effort Sharing Decision
ESR Effort Sharing Regulation
EU ETS EU Emissions Trading System
EU European Union
EWA The Energy & Water Agency
FAME Fatty Acid Methyl Esters
FEC Final energy consumption
FIT Feed-in-Tariff
GDP Gross domestic product
GHG Greenhouse Gas
GJ Giga Joule
GVA Gross value added
GWh Gigawatt hour
H&C Heating and cooling
HPWH Heat pump water heater
HVAC High Voltage Alternating Current
HVO Hydrotreated vegetable oil
ICE Internal Combustion Engines
IMSC Inter-Ministerial Steering Committee
IPPU Industrial processes and product use
ktoe kilotonnes of oil equivalent
kWh Kilowatt hour
kWp Kilowatt peak
LN Legal Notice
LNG Liquified Natural Gas
LULUCF Land Use, Land use change and Forestry
MCCAA Malta Competition and Consumer Affairs Authority
MCST Malta Council for Science and Technology
MESDC Ministry for Environment, Sustainable Development and Climate Change
MMR Monitoring Mechanism Regulation
MRA Malta Resources Authority
MS Member State
MTGP Melita TransGas Pipeline
MTIP Ministry for Transport, Infrastructure and Capital Projects
NECP National Energy and Climate Plan
NEEAP National Energy Efficiency Action Plan
NREAP National Renewable Energy Action Plan
NSO National Statistics Office
PA Planning Authority
PAMs Policies and measures
PEC Primary energy consumption
PV Photovoltaic
R&I Research and innovation
RED Renewable Energy Directive
RES Renewable Energy Sources
REWS Regulator for Energy and Water Services
SEA Strategic Environmental Assessment
SL Subsidiary Legislation
SME Small and Medium-Sized Enterprise
SWH Solar Water Heater
TSO Transmission System Operator
UNFCCC United Nations Framework Convention on Climate Change
WSC Water Services Corporation
WSM WasteServ Malta
WEM ‘With Existing Measures’ scenario
WPM ‘With Planned Measures’ scenario
LIST OF TABLES
Table 1 - Recommendations on Draft NECP issued to Malta and corresponding justifications ........... 21
Table 2 - Malta's RES contribution between 2021-2030, % .................................................................. 38
Table 3 - Estimated trajectories for sectoral share of RES (WPM), 2021-2030 .................................... 39
Table 4 – National NECP Population projections, thousands ............................................................... 45
Table 5 - Final energy consumption, ktoe. ............................................................................................ 49
Table 6 - Share of final energy consumption in the residential sector by type of end-use in 2016, %
(Source: Eurostat) ................................................................................................................................. 81
Table 7 – Gas pipeline project implementation plan ............................................................................ 92
Table 8 - Projected total population and number of households as five-year averages. ................... 110
Table 9 - Projected average GDP growth in five-year periods, %. ...................................................... 111
Table 10 - Projections of GDP per capita, EUR 2016 prices. ............................................................... 111
Table 11 Natural gas and carbon price (EU ETS) projections, EUR (2016)/MWh
and EUR (2016)/t CO
2
.
............................................................................................................................................................ 115
Table 12 Solar PV technology cost assumptions, EUR 2013/kW excluding taxes (Source: Technology
pathways in decarbonisation scenarios, 2018). .................................................................................. 116
Table 13 Cost reduction scenario, EUR 2014/kW excluding taxes (Source: Fraunhofer ISE, 2015). . 116
Table 14 - Low and high capital cost estimation, EUR/kW (Source: Zountouridou et al., 2015). ....... 117
Table 15 Technology assumptions for technologies in the residential and commercial sectors. ...... 118
Table 16 Technology assumptions for categories of vehicles. ............................................................ 119
Table 17- Total GHG emissions, with and without LULUCF ................................................................ 121
Table 18 - Greenhouse gas emission trends by gas ............................................................................ 124
Table 19 - Total CO2 emissions vs total electricity generated in Malta by power plants, 2005-2017 137
Table 20 Share of renewable energy in gross final energy consumption, total and per sector 2010 -
2017 .................................................................................................................................................... 144
Table 21 - Overall RES share and sectoral shares under WEM scenario, 2021-2030, GWh ............... 149
Table 22 - Total primary energy consumption and final energy consumption by sector from 2013-2017,
ktoe (including heat pumps) ............................................................................................................... 150
Table 23 Overall energy performance requirement for new dwellings, kWh/m² per annum. ......... 152
Table 24 Overall energy performance requirement for new non-dwellings (offices), kWh/m² per
annum. ................................................................................................................................................ 153
Table 25 - Gas deliveries to Malta, 2017-2018 ................................................................................... 155
Table 26 Malta-Sicily Electricity interconnector details. .................................................................... 158
Table 27 - Overview of domestic R&I projects carried out between 2010-2018, grouped by Set Plan
Actions ................................................................................................................................................ 164
Table 28 - Public sector R&I expenditure by relevant fields of socio-economic objective, EUR (Source:
NSO). ................................................................................................................................................... 164
Table 29 - Private sector R&I expenditure by relevant fields of socio-economic objective, EUR (Source:
NSO). ................................................................................................................................................... 165
Table 30 - Total number of researchers between 2014-2017, (Source: Eurostat tsc00003 & NSO). . 165
Table 31 - Number of researchers by relevant fields of science between 2014-2017, (Source: NSO).
............................................................................................................................................................ 165
Table 32 - Main price components by tariff bands in non-household sector in 2017, EUR nominal
(Source: Eurostat). .............................................................................................................................. 166
Table 33 - All policies and measures under the WPM scenario.......................................................... 169
Table 34 - Electricity imports and exports under the WPM scenario, GWh ....................................... 193
Table 35 Projected EU ETS carbon prices according to EU Reference Scenario 2016 ........................ 197
Table 36 – Policy interactions under WPM scenario between Energy Union dimensions ................. 205
Table 37 - Impacts Assessed: Economic (ECO), Social (SOC), Environmental (ENV), Others (OTH). .. 208
Table 38 - Modelled WPM PAMs ........................................................................................................ 211
Table 39 - Direct and Voluntary Financial Burden of a sub-set of PAMs ............................................ 219
LIST OF FIGURES
Figure 1 - Public consultation process on the NECP ............................................................................. 16
Figure 2 - Inshore marine areas used by Puffinus Yelkouan as recorded from 31 GPS data loggers,
extracted from Borg et all (2010) Source: MEPA .................................................................................. 31
Figure 3 - Bathymetric map of the Maltese Islands .............................................................................. 33
Figure 4 - Overview of major maritime activities in Maltese waters (Source: Strategic Plan for
Environment and Development of Malta, 2015) .................................................................................. 33
Figure 5 - WindEurope projections on 2016 and 2030 offshore wind installations per sea basin (Source:
WindEurope, 2017) ............................................................................................................................... 34
Figure 6 - The effect of cloud cover on electricity generation by 133 MWp of installed solar PV.
Transients of circa 60MW are experienced within 60 minutes with the current level of installed
capacity ................................................................................................................................................. 35
Figure 7 - Fuels consumed for Heating and Cooling in 2017 ................................................................ 36
Figure 8 - Annual energy consumption per square km and per capita, 2012. Source: Eurostat. ......... 37
Figure 9 - Estimated trajectories for sectoral share of RES under WPM scenario, 2021-2030 ............ 39
Figure 10 - Solar PV capacity and generation under the WPM scenario, 2021-2030 ........................... 40
Figure 11 - RES Electricity trajectory between 2021-2030, GWh ......................................................... 41
Figure 12 - RES Heating and cooling under WPM scenario 2021-2030, GWh ...................................... 41
Figure 13 - RES trajectory in transport under WPM scenario 2021-2030, GWh .................................. 42
Figure 14 - Estimated trajectory for bioenergy under the WPM scenario 2021-2030, GWh ............... 43
Figure 15 - Projections of biofuels under WPM scenario, 2021-2030, GWh ........................................ 44
Figure 16 - Malta projections of energy intensity compared to those from PRIMES 2007 database .. 47
Figure 17 - Projected primary and final energy consumption levels in absolute terms, ktoe. ............. 48
Figure 18 - Electricity interconnectivity level under WPM scenario ..................................................... 53
Figure 19 - Nominal transmission capacity of interconnector vs 30% of peak load (WPM), 2018-2040
.............................................................................................................................................................. 54
Figure 20 - Nominal transmission capacity of interconnector and installed RES generation capacity,
2018-2030 ............................................................................................................................................. 55
Figure 21 – Solar PV generation during a typical day in April with intermittent cloud cover (MW) .... 55
Figure 22 - Priority areas for R&I activities defined in the Draft National Strategy for Research and
Innovation in Energy and Water (2021-2030), subject to amendments following the upcoming public
consultation process. ............................................................................................................................ 60
Figure 23 - Electricity production in 2017 from PV systems on full vs partial export by sector (residential
(RSD) vs. non-residential (Non-RSD)), % ............................................................................................... 71
Figure 24 - Production from PV systems on full or partial export under WPM scenario, 2018-2030, %
.............................................................................................................................................................. 72
Figure 25 - Final energy consumption per capita in 2017, GJ/capita (Source: Eurostat) ..................... 78
Figure 26 - Final energy consumption by sector in the EU in 2016, % (Source: Eurostat) ................... 79
Figure 27 - Final energy consumption in Malta by sector in 2016, % ................................................... 79
Figure 28 - Average consumption per dwelling (adjusted to EU climate) in 2016, toe/dw (Source:
Odyssee-Mure)...................................................................................................................................... 80
Figure 29 - Percentage of households unable to keep their home adequately warm in Malta compared
to EU average, % (Source: Eurostat) ................................................................................................... 106
Figure 30 - GVA distribution in 2017, %. ............................................................................................. 112
Figure 31 - Projected demographic trends. ........................................................................................ 113
Figure 32 The projected vehicle fleet profile by type of vehicle (fuel source not indicated), stock. . 114
Figure 33 - Total GHG emission trends, 1990-2017 ............................................................................ 120
Figure 34 - Annual percentage change in total emissions year-to-year ............................................. 121
Figure 35 – Annual percentage change of total emissions compared to base year (1990) ............... 122
Figure 36 – Trend in emissions per capita compared to population growth trend ............................ 123
Figure 37 - Greenhouse gas emission trends by gas, 1990 – 2017 ..................................................... 124
Figure 38 - Percentage share by gas of total GHG emissions ............................................................. 125
Figure 39 - CO
2
emission trends by sector .......................................................................................... 126
Figure 40 - Share of sector/category in total CO
2
emissions for 2017 ................................................ 126
Figure 41 - CH
4
emission trend by sector ............................................................................................ 127
Figure 42 - Share of sector in total national CH
4
emissions, 2017 ...................................................... 127
Figure 43 - N
2
O Emission trends by gas, total and by sector .............................................................. 128
Figure 44 - Share of total national N
2
O emissions, 2017 .................................................................... 128
Figure 45 - F-Gases emission trends by gas: HFCs, PFCs, SF, totals by gas ......................................... 129
Figure 46 - Share by sector of total GHG emissions............................................................................ 130
Figure 47 - Annual percentage change compared to 1990, by sector ................................................ 130
Figure 48 - Emission trends in the energy sector................................................................................ 131
Figure 49 - Annual percentage change in Energy sector emissions year to year ............................... 132
Figure 50 - Annual percentage change in Energy sector emissions compared to base year (1990) .. 132
Figure 51 - Emissions trends by gas within IPPU sector ..................................................................... 133
Figure 52 - Emission trends by gas within Agriculture sector ............................................................. 134
Figure 53 - Share by gas in total Agriculture emissions, 2017 ............................................................ 134
Figure 54 - Emission trends in LULUCF sector ..................................................................................... 135
Figure 55 - Emission trends in Waste sector ....................................................................................... 136
Figure 56 - Total GHG emissions from the energy sectors under WPM and total WEM, kt CO
2
eq. .. 138
Figure 57 - ESR energy ssector emissions under WPM scenario and total WEM, kt CO
2
eq. ............. 138
Figure 58 - Stock emissions in IPPU .................................................................................................... 139
Figure 59 - Agriculture GHG emission projections, WEM and WPM .................................................. 140
Figure 60 - Net LULUCF emission totals .............................................................................................. 141
Figure 61 - Landfilling profile projections, by scenario ....................................................................... 142
Figure 62 – Thermal treatment profile projections ............................................................................ 143
Figure 63 - Biological treatment, by scenario ..................................................................................... 143
Figure 64 - Emissions projections in Waste sector ............................................................................. 144
Figure 65 - Share of RES technologies in consumption in 2017 .......................................................... 145
Figure 66 - Renewable energy consumption in H&C, 2010-2017, GWh ............................................. 146
Figure 67 - Renewable energy consumption in the electricity sector between 2010-2017, GWh ..... 147
Figure 68 - Renewable energy consumption in the transport sector, GWh ....................................... 148
Figure 69 - RES overall share and by sector under the WEM scenario, 2021-2030, % ....................... 149
Figure 70 - Final energy consumption by sector in 2017, % ............................................................... 150
Figure 71 - Projections for energy consumption under the WEM scenario, ktoe (incl. heat pumps) 152
Figure 72 - Estimated energy mix as share in gross inland consumption, including electricity imported
over the interconnector in 2017, %. ................................................................................................... 154
Figure 73 Energy mix for electricity generation between in 2013 and 2017, ktoe............................ 155
Figure 74 - LNG Deliveries by origin, 2017 and 2018 .......................................................................... 156
Figure 75 - Electricity generation by source under the WEM scenario, 2018-2040 ........................... 157
Figure 76 Trends in the proxy for the market price from 2011-2017, EUR (2016)/kWh. .................. 160
Figure 77 - ESD/ESR projections by sector .......................................................................................... 171
Figure 78 - National total air pollutant emission projections, kt ........................................................ 172
Figure 79 - NOx emission projections by sector, kt ............................................................................ 173
Figure 80 - NMVOC emission projections by sector, kt ...................................................................... 174
Figure 81 - SO
2
emission projections by sector, kt.............................................................................. 175
Figure 82 - NH
3
emission projections, kt ............................................................................................. 175
Figure 83 - PM
2.5
emission projections, kt .......................................................................................... 176
Figure 84 - Black carbon emission projections, kt .............................................................................. 177
Figure 85 - RES share in gross final energy consumption for WEM and WPM scenario, incl. RES credits
............................................................................................................................................................ 178
Figure 86 - RES technology consumption under WPM in 2021-2040, GWh ....................................... 179
Figure 87 - PV capacity for WEM vs WPM scenarios, 2010-2030, GWh ............................................. 180
Figure 88 - Projections for energy consumption under WPM, ktoe (incl. heat pumps) ..................... 181
Figure 89 - Projections for final energy consumption for road transport sector, split by fuel, under the
WPM scenario, ktoe ............................................................................................................................ 182
Figure 90 - Final energy consumption in aviation sector under WPM scenario, ktoe ........................ 183
Figure 91 - Final energy consumption in inland navigation sector, split by fuel under WPM scenario,
ktoe ..................................................................................................................................................... 183
Figure 92 - Final energy consumption in industry, split by fuel under the WPM scenario, ktoe ....... 184
Figure 93 - Final energy consumption split by fuel for services sector under WPM scenario, ktoe .. 184
Figure 94 - Final energy consumption split by fuel for agriculture sector under WPM scenario, ktoe
............................................................................................................................................................ 185
Figure 95 - Final energy consumption split by fuel in residential sector under WPM scenario, ktoe 185
Figure 96 - Electricity generation by source under the WPM scenario, 2018-2040 ........................... 186
Figure 97 - Energy mix for electricity generation under WPM scenario (%) ...................................... 187
Figure 98 - Projected energy mix as a share in PEC under WPM scenario (%) ................................... 188
Figure 99 - Net import dependency of WEM and WPM scenarios (%) ............................................... 188
Figure 100 - Projected consumption of imported energy sources (WPM), GWh ............................... 189
Figure 101 - Projected consumption of domestic energy sources (WPM), GWh ............................... 190
Figure 102 - Installed capacity by source under WPM scenario (MW), 2018-2040 ........................... 191
Figure 103 - Peak load (MW) and gross electricity consumption (GWh) under WPM and WEM scenario,
2018-2040 ........................................................................................................................................... 192
Figure 104 WPM Annual Peak Demand (MW) under different temperature conditions: (i) normal
climate; (ii) extreme temperature with a 2.3% probability; and (iii) extreme temperature with a 0.1%
probability. .......................................................................................................................................... 193
Figure 105 - Electricity imports and exports over the interconnector (WPM), 2018-2040 ................ 194
Figure 106 - Peak electricity demand shortfall expressed in MW and total number of hours, WEM and
WPM ................................................................................................................................................... 195
Figure 107 - Shortfalls (MW) at peak hours under different temperature conditions: (i) normal climate;
(ii) extreme temperature with a 2.3% probability; and (iii) extreme temperature with a 0.1%
probability. .......................................................................................................................................... 195
Figure 107 - Projected minimum Sunday load and concurrent PV generation under WPM scenario
(MW) ................................................................................................................................................... 196
Figure 108 - Projected wholesale electricity and gas prices from 2018-2040, EUR (2016)/kWh. ..... 197
Figure 109 - Share of households with heat pumps by end-use and households with no heat pumps
under WPM scenario (%) .................................................................................................................... 198
Figure 110 - Typical annual electricity consumption of households with heat pumps for heating and
cooling under WPM (kWh/year) ......................................................................................................... 199
Figure 111 - Typical annual electricity consumption of households with heat pumps for cooling only
under WPM (kWh/yr) ......................................................................................................................... 199
Figure 112 - Typical annual electricity consumption of households with no heat pumps under WPM
(kWh/yr) .............................................................................................................................................. 200
Figure 113 - Share of RES in gross final consumption of energy (GFCoE) under the different sensitivity
scenarios, % ........................................................................................................................................ 202
Figure 114 - The trajectory of increase in RES-H&C under the different sensitivity scenarios, % ...... 203
Figure 115 - Projected peak load and number of hours with electricity shortfall under the different
sensitivity scenarios ............................................................................................................................ 204
Figure 117 - NECP modelling rationale ............................................................................................... 207
Figure 118 - Overall semi-qualitative score of modelled WPM PAMs ................................................ 213
Figure 119 - Individual PAM semi-quantitative score ......................................................................... 214
Figure 120 - Overall Semi-qualitative score of WPM PAMs excluding the Critical PAM .................... 214
Figure 121 - Semi-Qualitative Score of all Unmodelled WPM PAMs .................................................. 215
Figure 122 - WPM Impact on job creation .......................................................................................... 216
Figure 123 - Costs borne by Government under a WPM scenario ..................................................... 218
Figure 124 - Total investments by scenario, mil. €
2016
........................................................................ 221
Figure 125 - Investment costs by sector under the WPM scenario, mil. €
2016
.................................... 222
Figure 126 - Investment shares by sector under the WPM scenario (%) ........................................... 223
Figure 127 - Additional investments under the WPM scenario .......................................................... 224
Figure 128 - Overall discounted investments as a difference between WEM and WPM ................... 224
Figure 129 - WPM investments split by technology type, 2018-2040 ................................................ 225
Figure 130 - Net increased investment in the WPM scenario split by technology cluster ................. 226
Figure 131 - Total investments as a share of GDP (%) ........................................................................ 226
Figure 132 - Annual investment in households (€
2016
/household) ..................................................... 227
1
1 OVERVIEW AND PROCESS FOR ESTABLISHING THE PLAN
1.1 EXECUTIVE SUMMARY
Political, economic, environmental and social context of the plan
Malta’s National Energy and Climate Plan (NECP) is presented at a time when globally, energy and
climate issues are at the forefront of political and societal debate and the implications of climate
change are ever so perceptible. At European level there is a clear drive towards climate neutrality by
2050. The new European Commission acknowledges that although Europe is currently on track to
meet its 2030 emission reduction targets and goals enshrined in the Paris Agreement, reaching climate
neutrality by 2050 will require more ambitious contributions of all sectors. In view of this increased
ambition, the Commission is expected to present a proposal for the European Green deal which will
include even more ambitious proposals in the area of Energy and Climate Change.
The Governance Regulation
1
, which sets out the framework for the NECP, aims to ensure the
achievement of the Union’s 2030 long-term objectives and targets in line with the Union’s
international commitments under the Paris Agreement. A bottom-up approach is adopted, whereby
Member States present their fair and ambitious efforts and contributions towards a decarbonised
energy system and towards mitigating climate change. Whilst the Governance Regulation sets the
basis for the development of this plan, this is complimented by a package of new EU legislation
targeting energy efficiency, renewable energy, energy security and market design, appropriately
referred to as the “Clean Energy for all Europeans Package”.
Malta’s National Energy and Climate Plan follows the scope of the Energy Union and covers its five
dimensions: decarbonisation, energy efficiency, energy security, internal energy market, and research,
innovation and competitiveness. The five dimensions are considered as being closely related and
mutually reinforcing and are correspondingly treated as such within the plan. The underlying
requirement of the plan’s integrated and holistic nature was fully considered during the development
of the NECP. In line with the iterative process outlined in the Governance Regulation, Malta’s Draft
NECP was submitted to the European Commission in December 2018 and updated during the course
of 2019 whilst taking due account of the Recommendation
2
published by the European Commission
on Malta’s Draft NECP.
Malta’s NECP follows the structure required by Annex I of the Governance Regulation. The Plan sets
out Malta’s national objectives and contributions for 2030 in the respective dimensions in Section 2
of the Plan and contains a description of the policies and measures that need to be implemented in
order to reach these objectives in Section 3. This is supplemented by an analytical basis consisting of
a description of the current situation in the five dimensions as well as projections until 2040 which are
based on robust and consistent data, assumptions and modelling exercises. Projections under the
‘With Existing Measures (WEM)’ scenario are presented within Section 4, while the expected projected
1
Regulation (EU) 2018/1999 of the European Parlaiment and of the Council on the Governance of the Energy Union and
Climate Action.
2
Commission recommendation of 18.6.2019. SWD(2019)268. Available online:
https://ec.europa.eu/energy/sites/ener/files/documents/mt_rec_en.pdf
2
development of Malta’s energy system and emissions under a ‘With Planned Measures (WPM)’
scenario are presented under the Impact Assessment section in 5.1. The impact assessment, which
forms part of the analytical basis, further provides an overview of the impacts of the ‘WPM’ scenario
on macroeconomic, health, employment, social and skills, and including an overview of the expected
investment needs. Malta’s NECP presents two main scenarios: a ’With Existing Measures’ scenario
and a ‘With Planned Measures’ scenario. While the former provides a snapshot of the current situation
in Malta with implemented and adopted measures as of end of 2017 (with no impact post 2020), the
latter scenario also consists of planned policies and measures which were adopted and implemented
post-2017and portrays Malta’s projected achievement once these measures are implemented.
The NECP serves as a strategic planning framework and policy document that will guide Malta’s
contribution to achieving the Energy Union’s 2030 objectives and targets, whilst identifying those
measures necessary for their achievement during the period until 2030, with an outlook until 2040.
The Plan aims to support Malta’s economic, environmental and social development and sustainability,
while also focusing on providing clear benefits for citizens, businesses and investors in the Maltese
Islands. Whilst the Ministry responsible for finance and budget has been actively involved in the
development of this plan, all financial estimates included in Malta’s National Energy and Climate Plan
are subject to review and endorsement on annual basis by the Ministry responsible for finance and
budget.
It is crucial that the current social, economic and environmental context of the Maltese Islands and its
impact on the energy system and climate change mitigation is kept in mind when reading this plan.
Malta’s first NECP arrives at a time of high annual GDP and population growth driven by an expanding
service-based economy and a corresponding increased demand for labour force, leading to significant
net inwards migration.
The NECP provides a clear path for Malta to attain the overarching objectives of a sustainable,
affordable and secure energy system which needs to follow a decarbonisation trajectory, whilst
recognising the inherent challenges and opportunities brought about by national specificities such as
spatial constraints, high population density, and a mild Mediterranean climate. This calls for specific
solutions in each of the five dimensions, which may also depend on further technological and cost
developments.
Strategy relating to the five dimensions of the Energy Union
Malta’s strategy under the Decarbonisation dimension strives to promote the transition to a low-
carbon economy, primarily through the pursuit of upholding national GHG emissions reduction
commitments, and by continuing to deploy all viable indigenous renewable energy sources. Malta’s
efforts towards climate change mitigation and adaptation are enacted in the Climate Action Act,
established in 2015, and further strengthened through the ratification of the Paris Agreement,
whereby Malta reaffirmed its commitment to address climate issues to its fullest potential and
contribute towards achieving the EU’s collective target of 40% reduction of GHG emissions by 2030
compared to 1990 levels.
In the area of renewable energy, Malta will continue its efforts to increase its renewable energy share,
a task which is progressively becoming ever more daunting given the growth in final energy
consumption. Malta will extend its current support framework for RES to the period until 2030 and
3
launch new initiatives tailored to local specificities to ensure that technically and economically viable
indigenous sources of renewable energy may be exploited.
Temperate climatic conditions and lack of energy-intensive industries mean that Malta has the second
lowest final energy consumption per capita across all EU Member States. Nevertheless, the specific
characteristics of Malta’s energy system and market, such as its small nature, the existence of a single
electricity distributor/supplier, the absence of natural gas and district heating and cooling networks,
and the small size and number of suppliers and market players limit the range of measures available
to meet energy savings obligations. Steep population and GDP growth in recent years has made it
difficult to restrain energy consumption. Nevertheless, Malta’s efforts in the area of energy efficiency
post-2020 will seek to achieve cost efficient energy savings in the relative sectors whilst taking into
account the effective potential. Malta will strive to continue decreasing the overall energy intensity of
its economy and uphold its obligations under the Energy Efficiency Directive
3
.
Malta’s strategy under the Energy Security dimension will continue to emphasize the Government’s
commitment to achieving greater security of supply through the diversification of energy sources and
suppliers and reduce energy import dependency primarily through the deployment of indigenous RES.
Periodic contingency planning in the case of supply disruption for electricity, gas and oil sectors will
be ensured, while energy security is also tackled within the context of the long-term objective of
decarbonising the energy system, which will pose new challenges for Malta and thus will require new
solutions. Malta considers the Gas Pipeline project with Italy as an important element to secure its
energy supply and tap future opportunities such as the supply of biogas blended with natural gas and
possibly also Hydrogen.
Malta’s electricity grid is linked to the European grid via the 200MW Malta-Italy subsea
interconnector, which ensures that Malta’s interconnectivity shall remain well above the EU-wide
target of 15%
4
throughout the whole projected period. The interconnector contributes to the
robustness of the electricity system and strengthens Malta’s security of supply. Malta does not have
an electricity transmission system or a liquid wholesale market and is eligible to derogate from the
application of a number of provisions of the Electricity Market Directive
5
due to the small size and
peripheral position of Malta’s electricity system, which stands at the edge of the EU grid. Policies and
measures under the internal energy market and energy security dimensions are driven primarily by
the delivery of the gas pipeline project, but also focus on increasing the flexibility of the energy system
and ensuring that vulnerable and energy poor consumers are duly protected.
Malta will endeavour to boost research, innovation and competitiveness, and a national R&I strategy
driven by the smart specialization process is expected to be finalized by 2020. In order to foster
research & innovation specifically in the area of energy and low-carbon technologies, it was
determined that a sector-specific strategy for R&I in energy (and water) will be developed to fully take
advantage of the value-added of such targeted investment. The National Strategy for Research and
Innovation in Energy and Water (2021-2030) is expected to be finalized by Q1 2020. The Strategy’s
3
Directive (EU) 2018/2002 of the European Parliament and of the Council amending Directive 2012/27/EU on energy
efficiency.
4
Calculated as electricity interconnection capacity (i.e capacity of the electricity interconnector with Italy) over the net
installed capacity in Malta.
5
Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal
market for electricity and amending Directive 2012/27/EU
4
main aim is to contribute to Malta’s transition to a low-impact and decarbonised economy in an
effective, just and timely manner; strengthen competitiveness, growth and commercial
attractiveness; and increase the level of domestic support for R&I in Malta.
5
Overview table with key objectives, policies and measures of the plan
Dimension
Key policies and measures
Decarbonisatio
n
GHG emissions
and removals
Management of Farm Slurries in the Maltese Islands;
Waste Management Plan 2020-2030;
Development of Waste-to-Energy Facility;
Sustainable mobility measures;
Renewable
Energy
Measures exploiting all technically and economically viable
indigenous RES sources;
Extension of current policy framework in the area of RES for the
period until 2030 whilst providing new initiatives tailored to local
specificities.
- Financial support schemes for Solar PV;
- Schemes to support solar water heaters and heat pump
water heaters;
- Biofuels substitution obligation;
Energy
Efficiency
Energy savings obligations and incentives for all energy end-use
sectors, through measures such as:
- Electricity tariffs supporting energy efficiency;
- Support schemes for services and industry;
- Government leading by example;
- Projects in primary water network and wastewater
treatment plants
6
Energy
Security
Delivery of gas pipeline (“MTGP”) project;
Critical infrastructure protection and cyber-security in the energy
sector;
Contingency planning (Gas Security of Supply, Risk Preparedness
in the electricity sector, Oil Supply Disruption, Emergency stock
holding obligations);
Energy storage solutions and demand management
Internal
energy
market
Measures targeting an increase in the flexibility of the energy
system and the protection of energy consumers.
Delivery of gas pipeline (“MTGP”) project;
Research &
Innovation and
competitiveness
Delivery of objectives of the National Strategy for R&I in Energy &
Water, which may include
6
:
- Establishment of Platform RINEW;
- Enhanced financing of R&I projects within the priority
areas identified;
- Increased public-private partnerships in energy R&I;
- Systematic collection of data for evidence-based
evaluation;
6
Subject to changes and updates following the public consultation on the Draft R&I Strategy expected to be finalized in January 2020.
7
1.2 OVERVIEW OF CURRENT POLICY SITUATION
National and EU energy system and policy context of the plan
Recent years proved to be a period of rapid enhancement of the energy sector in Malta. Government’s
energy policy focuses on providing Maltese citizens and businesses with affordable, sustainable and
secure forms of energy; this is a reflection of the overarching policy fundamentals expressed by the
EU Energy Union. The underlying objectives guiding Malta’s energy policy decisions in the last decade
include:
• Reducing Malta's dependence on the importation of oil through the achievement of a
diversified energy mix;
• Reducing the carbon footprint and greenhouse gas emissions of Malta through improved
efficiency in generation capacity, and through the replacement of heavy fuel oil with natural
gas and renewable sources;
• Enhancing and strengthening the security of supply of the country whilst ensuring the
availability of appropriate back up capacity;
• Stimulating investment in renewable energy sources through the provision of appropriate
incentives;
• Achieving a degree of interconnection for electricity supply; and
• Overhauling the generation capacity of the country with a view to achieving higher efficiency
gains whilst stimulating investment in natural gas infrastructures.
A number of these objectives have been successfully addressed. With Malta’s Energy Policy published
in 2012, a clear roadmap was delineated to ensure that Malta’s energy sector meets these objectives.
Priority was given to the swift upgrading of inefficient conventional electricity production
infrastructure and the introduction of LNG as fuel for power generation, which until then was reliant
on heavy fuel oil. Malta closed the inefficient Marsa Power Station; completed and placed in operation
the 200MW interconnector with the European grid; and has commissioned a new 205MW gas-fired,
high efficiency combined cycle gas turbine (CCGT) power plant as well as an LNG facility for the
provision of natural gas in the short term with a view to replace this option by a permanent multi-
purpose gas pipeline with Sicily. In addition, the recently built 149MW power plant which comprises
eight diesel engines has been converted to run on natural gas instead of heavy fuel oil. Four of these
engines can also run on diesel oil, a feature sought to contribute towards the desired level of security
of supply. The developments in the generation sector that have taken place have been given the
highest priority as these have resulted in significant primary energy savings and in substantial
reductions in GHG emissions from the energy sector. Investments in the power generation sector were
guided by the Energy Efficiency first principle and indeed managed to increase the overall conversion
efficiency from 25-30% to more than 50%.
The Distribution System Operator (DSO) executed a number of upgrades in its Distribution Centres to
consolidate the national electricity distribution grid. It also invested more than €100 million
7
over the
7
https://www.enemalta.com.mt/upgrading-your-network/2014-2017/
8
period 2014-2017 to upgrade and expand major nodes of the national electricity network and improve
the quality of service.
Malta’s energy policy also focuses on maximizing Malta’s effective renewable energy potential. The
Government increased its efforts to support the deployment of renewable energy, especially
photovoltaics, solar water heaters and heat pump water heaters (which are particularly well suited to
Malta’s geographic location), and whilst acknowledging the technical, geographical and spatial
barriers limiting renewable energy potential, Malta continues to support the exploitation of viable
indigenous sources of renewable energy.
Malta does not have a natural gas network (LNG is only made available to the power plant), although
uses of natural gas in niche applications may start to develop if the Malta-Italy gas pipeline is pursued.
Throughout the years, Malta continued in its effort to address climate action. These efforts culminated
in 2015 with the development and enactment of the Climate Action Act. This provides the legal
framework within which climate action is pursued and establishes a governance structure. Climate
mitigation and adaptation strategies were devised with programmes of measures to address the local
context. Through the ratification of the Paris Agreement, Malta reaffirmed its commitment to address
climate issues to their fullest potential and to contribute towards the European Union’s collective
target of 40% reduction of its GHG emissions by 2030 compared to 1990 levels.
Current energy and climate policies and measures relating to the five Energy Union
dimensions
The policy framework for energy and climate in the Maltese Islands is described in the following key
documents:
• The National Energy Policy, published in 2012;
• The National Renewable Energy Action Plan for 2020, published in 2017;
• The National Energy Efficiency Action Plan for 2020, published in 2017;
• National Strategy for Policy and Abatement Measures Relating to the Reduction of
Greenhouse Gas Emissions, published in 2009; and
• Malta’s Low Carbon Development Vision, 2017.
Other supporting documents amplify aspects of these policy frameworks and include measures
designed to implement the various policies. The policies and measures described in the above-
mentioned policy documents feature in the ‘With Existing Measures’ scenario.
National Energy Policy (2012)
The major policy areas and objectives set out in the 2012 National Energy Policy are listed below,
broadly annotated under the five dimensions of the Energy Union. These policy areas remain generally
valid within the current policy framework until 2030, even though priorities and emphases may have
changed, and various major projects have been implemented.
• Decarbonisation: The 2012 Energy Policy focused on Government support targeting the
sustainable development of renewable energy sources, including commitments to reduce
GHG emissions related to the production, distribution and consumption of energy. The
9
reduction of GHG and other emissions was to be reflected in policy, legislation and
implementation of projects.
• Energy efficiency: Government focused on encouraging and facilitating the achievement of
increased energy efficiency in electricity generation and distribution, and in energy end-use,
and through leading by example.
• Energy security: The Government’s focus was placed on diversification away from reliance on
oil products, replacement of ageing power plants, and ensuring that contingency plans are in
place to cater for short-term disruption of oil or LNG supply. The government continued to
support the sustainable deployment of viable indigenous renewable energy sources.
• Internal energy market: The objective was to establish an electricity and gas interconnection
with the European grids to provide the basis for integration with the EU internal energy
market. The Government also aimed to ensure that the legal and regulatory frameworks result
in affordable energy pricing, whilst encouraging competition within the limits imposed by the
market size and structure. Social measures are also in place to support and protect vulnerable
consumers.
• Research, innovation and competitiveness: The Government committed that its fiscal policy
and its education and research policies support the general objectives of ensuring security of
supply, environmental protection and competitiveness.
As a consequence of the changed priorities and of major projects undertaken in recent years, various
measures arising out of the Energy Policy (2012) have been implemented, others superseded or
rendered irrelevant. Several, certainly the more important, were achieved earlier than originally
planned.
The National Renewable Energy Action Plan (2017)
8
The need for an updated action plan covering the period 2015 to 2020 arose after reconsideration of
the RES options triggered by technological, social and economic developments. The plan includes a
revision of the national RES perspective while remaining faithful to the underlying Energy Policy of
2012 and Malta’s commitments to meet the 10% Renewable Energy Target in line with Directive
2009/28/EC.
The Policy measures set out in 2015 and updated in 2017 are listed below. These are classified under
the ‘Decarbonisation’ dimension in the NECP framework.
• Indigenous sources of RES to be prioritised: Malta will seek to reasonably exploit indigenous
sources of RES to reduce the country’s dependence on foreign energy sources and thus add
to security of energy supply, green job creation and foreign investment.
• ‘Cooperation Mechanisms with other Countries’ as a fallback solution: Malta will consider
Cooperation Mechanisms with other countries to meet its 2020 Renewable Energy target only
as fall-back in the case that there will be a minor shortfall in meeting its 2020 target.
8
https://ec.europa.eu/energy/en/topics/renewable-energy/national-action-plans
10
• Malta’s RES mix to be diverse and multi-faceted to counter natural constraints: Malta will
exploit all cost-effective sources of RES that can make a contribution, however small, to the
final target. This is to counter its specific geographic, environmental and spatial constraints
(limited land area and high population density and its rich but fragile natural environment).
• RES and conventional energy are to be considered holistically: Government and competent
authorities will ensure in their decisions that all the components of the local energy sector, of
which RES is part, must holistically contribute to reach the objectives of the energy policy.
• Well managed deployment of RES: Government will ensure that investment and incentives
in RES are staggered in such a way as to avoid creating shocks and economic bubbles, while
achieving targets in a timely manner.
• Investment in Renewable Energy will be incentivised: Government will put forward incentive
schemes, consistent with national and EU legislation, to make up for the cost premium over
conventional energy and that are optimised to achieve their objectives at the lowest cost.
• Energy efficiency to be prioritised: Government will robustly and effectively promote efficient
use of energy resources, in line with the framework in Directive 2012/27/EU of the European
Parliament and of the Council and the ‘Energy Efficiency First’ principle.
• Building a Knowledge base and support Research: Government supports indigenous
research, development and innovation (RDI), intended to address specific challenges faced by
Malta by virtue of its particular geographic specificities, while contributing towards building
the competence and prestige of local institutions. Government supports the development of
appropriate technology to harness renewable marine energy. This is of particular relevance
to Malta given the limited landmass.
The National Energy Efficiency Action Plan (2017)
9
The NEEAP of 2017, revising that of 2014, describes the policies and measures until 2020 targeting
end–use efficiency in Malta. The Plan was drawn up as required by, and in line with Directive
2012/27/EU.
The Policies guiding that NEEAP were the following:
• Energy Efficiency Obligation Scheme upon the national electricity supplier, to apply a
progressive (rising block) residential tariff system which is inductive of efficient use of
electricity.
• Financing schemes/instruments and fiscal incentives to incentivize target sectors to adopt
more energy efficient technologies. Measures aim to target the residential, industrial,
commercial and transport sectors.
• Regulations and voluntary agreements with relatively high consumers of energy, encouraging
them to adopt more energy efficient technologies.
9
https://ec.europa.eu/energy/en/topics/energy-efficiency/energy-efficiency-directive/national-energy-efficiency-action-plans
11
• Public Sector leading by example whereby Government and public entities are being seen to
actively pursue energy efficient measures and projects.
The National Strategy for Policy and Abatement Measures Relating to the Reduction of Greenhouse
Gas Emissions (2009)
10
This strategy, commonly referred to as Malta’s Mitigation Strategy, provides a policy framework to
address Greenhouse gases across all sectors. It includes a national governance structure for
management of greenhouse gases, as well as outlining actions to instil a cultural shift towards a better
appreciation of our individual responsibility towards climate protection. These principles were later
enshrined in the Climate Action Act 2015 (CAP543) which provided a solid basis in the form of a legal
structure for governance of Greenhouse Gas (GHG) emissions.
The Mitigation Strategy primarily addresses the decarbonisation pillar of the Energy Union Strategy
but, in doing so, has considered other aspects including energy efficiency and R&I, as described below.
• Decarbonisation: In general, the strategy addresses measures contributing towards a general
unquantified reduction for Greenhouse gas emissions. It also envisaged the basic governance
and administrative structure currently in place.
• Energy efficiency: The strategy included provisions regarding energy efficiency, especially in
the building and electricity sector.
• Research, innovation and competitiveness: The strategy embodied actions that addressed
Research and Development and Innovation (RDI), especially in the local scene and with specific
sectoral scopes.
Malta’s Low Carbon Development Vision (2017)
11
This document was prepared as a stepping-stone to Malta’s Low Carbon Development Strategy, which
in turn crystalizes Malta’s response to the requirements of the UNFCCC, the Paris Agreement, EU
legislation and the obligations under the Climate Change Act 2015 (CAP543). The Vision focuses on
ways and means to transform Malta into a low-carbon and climate resilient country through symbiotic
societal and economic collective actions by 2050.
The Vision has, at its core, a focus on integrating various mitigation and adaptation measures to reduce
local greenhouse gas emissions. It identifies a number of key areas with potential for carbon emissions
reduction and where diversification is possible. The areas identified for action include energy,
transport, waste, agriculture, water, enterprise, tourism, information and communication
technologies (ICT), infrastructure (planning and monitoring of existence infrastructure), finance and
expert knowledge.
Through the Vision, Malta commits to:
10
https://msdec.gov.mt/en/Document%20Repository/Malta%20Climate%20Change%20Adaptation%20Strategy/National%20Climate%20C
hange%20MITIGATION%20Strategy.pdf
11
https://meae.gov.mt/en/Public_Consultations/MSDEC/Documents/MSDEC%20LCDS%20Vision.PDF
12
• Uphold national GHG emissions reduction targets as required by EU legislation by 2020;
• To move towards a reduction of national GHG emissions as opposed to pursuing a continued
limited increase in emission levels post 2020;
• Reduce national GHG emissions post-2030 in accordance with Malta’s economic development
priorities of the time;
• Set sector specific GHG emission reduction targets post-2020 to contribute to meeting
national targets; and
• Identify and implement opportunities to enhance climate resilience in Malta.
Energy Performance of Buildings
The main piece of legislation related to the energy performance of buildings is Legal Notice 47 of 2018
transposing Directive 2010/31/EU on the energy performance of buildings (recast).
Following the transposition of the first Directive on the energy performance of buildings (Directive
2002/91/EC), the ‘Technical Guidance F – Minimum Energy Performance of Buildings in Malta 2006’
regulating the minimum energy performance of buildings was issued in 2006. This first technical
guidance on the energy performance of buildings only specified certain aspects of energy
performance, such as the maximum building element U-value and design parameters. For instance
whilst its specified the maximum allowable glazing to wall ratio or the building services efficiency, no
energy thresholds were included. In 2015, a new document ‘Technical Document F – Minimum Energy
Performance Requirements for Buildings in Malta 2015’ was issued, updating the existing minimum
energy performance requirements, and listing the overall energy thresholds for residential buildings
and offices.
In 2015, Malta published its first plan on how Nearly Zero Energy Buildings will be addressed in Malta.
This policy document establishes targets for new nearly zero energy buildings, both for residential and
other buildings, and examines possible barriers.
A number of policies and measures have been put in place to promote energy-efficiency in buildings.
Predominantly, these have taken the form of financial incentives or grants. For example, as of 2018,
REWS offers a grant on the purchase of roof insulation and double-glazing products for domestic use
that reduce the consumption of energy. As part of a process to preserve and restore the built heritage
of the Maltese Islands and promote sustainable regeneration, the restoration grant scheme Irrestawra
Darek
12
, aimed at privately owned residential buildings within urban conservation areas, was launched
to promote investment. Other policies and measures focused on financial incentives and grants for
the deployment of renewable energy, soft loans for green or energy efficiency investments, as well as
financial investments assisting businesses in becoming more energy-efficient and education
campaigns.
12
More information available at: https://www.pa.org.mt/en/irrestawra-darek
13
Key issues of cross-border relevance
Issues of cross-border relevance for Malta have to be viewed within the context of an island with no
land borders and with effectively one neighbouring Member State. This has direct implications on
Malta’s energy system which is reflected in this plan, in particular under the Energy Security and
Internal Energy Market dimensions.
Therefore, issues of cross-border relevance relate primarily to commercial contracts relevant to
importation of electricity via the electricity interconnector and LNG for fuelling of the power station.
As from April 2015, the Maltese electricity system has been synchronised with the Italian system, with
scheduled imports through the 200MW HVAC 220kV electricity interconnector. The interconnector is
operated by Enemalta plc in coordination with the transmission system operator in Italy, Terna.
According to this arrangement, the Maltese electricity system is being treated as a virtual consumption
and production point connected to the Italian transmission grid. The interconnector is prevalently
used for imports of electricity and balancing.
The planned gas pipeline interconnection between Malta and Gela (Sicily, Italy) has reached the
permitting stage and technical, financial and environmental studies are underway. The pipeline is
scheduled for completion in 2025 provided it secures the necessary financing.
Cross-border cooperation in areas falling under the other dimensions, such as joint projects in
renewables, cooperation and sharing of best-practices on measures targeting energy efficiency and
possible joint projects in the area of research & innovation in low-carbon technologies are also
considered.
Administrative structure of implementing national energy and climate policies
An Inter-Ministerial Steering Committee (IMSC) was established through Cabinet Decision
CAB/90/XIII/17 with the objective to deliver Malta’s first National Energy and Climate Plan. The IMSC
was established to ensure that all national stakeholders contribute effectively towards the National
Plan, as the development of the Plan required the coordination and contribution from several entities.
Each Ministry forming part of the IMSC designated a high-level political representative to sit on the
Committee. Under the IMSC, two Technical Working Groups were established, one on energy
modelling and another on non-energy, climate-related modelling, tasked with providing relevant
quantitative assessments and technical input to the IMSC. The main role of the IMSC is that of aligning
diverse Ministerial priorities so as to develop a holistic and integrated NECP. By the end of 2018, the
deadline for the submission of Malta’s Draft NECP, the IMSC had met eight times. The IMSC met
another five times during 2019 in order to ensure the timely development and completion of the
remaining sections required for the submission of Malta’s Final Plan and to address issues such as the
outcomes from the public consultation process and recommendations published by the European
Commission on Malta’s Draft Plan. There is a possibility that the IMSC structure or a similar one will
remain in place post-2019 to overlook the implementation of policies and measures which have been
established as part of the NECP.
Given that the legal basis of the Governance Regulation falls primarily within the remit of the
Directorate-General for Energy, the Ministry for Energy and Water Management is the lead Ministry
14
in the development of the NECP. The following Ministries, all of which are represented on the IMSC,
are considered as important contributors to the drafting of the Plan and have been tasked with
providing input to sections falling under their remit.
• The Office of the Prime Minister
• Ministry for the Environment, Sustainable Development and Climate Change
• Minister for Transport, Infrastructure and Capital Projects
• Ministry for the Economy, Investment and Small Business
• Ministry for Finance
• Ministry for European Affairs and Equality
• Ministry for Education and Employment
• Ministry for Justice, Culture and Local Government
• Parliamentary Secretary for Financial Services, Digital Economy and Innovation
Apart from the individual Ministries sitting on the IMSC which are listed above, other national
governmental entities are considered as key stakeholders responsible for the implementation of
specific sections of national energy and climate policies falling and are also represented on the IMSC.
Technical assistance on the NECP
During the development of the Malta’s Draft and Final Plans, Malta has benefitted from the use of
technical support programmes provided by European Commission services. Malta participated in a
European Commission’s project in which Member States were provided assistance in developing
national greenhouse gas projections
13
. The results and recommendations of this project fed into
another Commission project through which technical assistance was provided to six Member States
in their development of the Plan
14
. The scope of this project from DG CLIMA and DG ENERGY was to
provide support to Member States in preparing aspects covering climate-related data gaps. Technical
assistance was being provided in relation to expert peer-review of the models available at the Malta
Resources Authority for the elaboration of projections of GHG emissions by sources and removals by
sinks for the sectors Industrial Processes and Product Use (IPPU), Agriculture, Land Use, land-use
Change and Forestry (LULUCF), and Waste.
Malta also benefitted from technical assistance through the Commission’s Structural Reform Support
Service (SRSS) contract. As part of the SRSS, the Ministry for Energy and Water Management benefited
from the services of experts for a period of 12 months, who assisted with the development of energy
models. The Ministry for Environment
15
, Sustainable Development and Climate Change applied for
Advisory Service concerning the Agricultural Sector.
Technical assistance was provided by E4SMA who focused primarily on the review of the analytical
basis of Malta’s NECP, supporting updating of the NECP modelling framework, development of the
Impact Assessment section, as well as on the preparation of terms of reference for the Strategic
Environmental Assessment. Support was provided on running the updated and enhanced modelling
framework, in particular to conduct a scenario and sensitivity analysis. In relation to the Impact
13
Service request No. 2016/03 under framework contract CLIMA.001/FRA/2015/0014
14
CLIMA/C.2/SER/2017/0002
15
“Technical support for the development of the integrated NECP of Malta” (SRSS/C2018/035)
15
Assessment, support was provided primarily on section 5.2 (macroeconomic, social, health impacts)
and 5.3 (overview of investment needs).
The SRSS project “Technical support on the emission framework for the agriculture sector in Malta”,
the beneficiary of which was the Ministry for Environment, Sustainable Development, and Climate
Change reviewed the existing and potentially new data providers to establish the most appropriate
data streams on improving the agriculture inventory.
1.3 CONSULTATIONS AND INVOLVEMENT OF NATIONAL AND EU ENTITIES AND THEIR
OUTCOME
Involvement of Parliament
Malta’s national law does not require formal endorsement of Malta’s National Energy and Climate
Plan by the Parliament. As outlined in Section 1.2, through Cabinet Decision CAB/90/XIII/17, the IMSC
on the NECP was established to ensure a coordinated approach of all Ministries relevant to the
development of the Plan. The Cabinet of Ministers has been regularly updated on the status of the
Plan. The Draft Plan, as well as options for policy scenarios establishing the direction of Malta’s
national energy and climate policies post-2020, were presented to Cabinet on the 4th December 2018
and the Draft NECP subsequently endorsed, in time for the Draft Plan’s submission to the European
Commission by the end of 2018.
Malta’s Final NECP was approved by the Cabinet of Ministers on 3 December 2019, prior to its formal
submission to the Commission in December 2019 in line with the requirements of the Governance
Regulation.
Involvement of local and regional authorities
Given Malta’s size, regional authorities do not exist. Local Councils form the most basic form of local
government; however, their role is primarily administrative and their involvement in energy and
climate policy design is marginal. The Local Government Division at the Ministry for Justice, Culture
and Local Government is responsible for assisting the Ministry in the formulation of strategies, policies
and legislation as required. Nevertheless, Local Councils were invited to provide feedback on Malta’s
NECP as part of the formal online public consultation process which took place at the beginning of
2019. This is further detailed in the section below.
Consultations with stakeholders, social partners, and engagement of civil society
and the general public
The involvement of local authorities, social partners, civil society organisations, the business
community, industry and other stakeholders as well as the general public is considered key under the
Regulation on the Governance of the Energy Union. Article 10 of the Regulation also requires that
Member States ensure that the general public is given early and effective opportunities to participate
in the preparation of the plans. The process of stakeholder engagement kicked-off early on in the
preparatory stages of the draft NECP. The public consultation process was then carried out at the
beginning of 2019 and is therefore fully reflected in Malta’s Final NECP.
16
Stakeholder involvement and public consultations for Malta’s NECP was carried out in three main
stages:
• Early stakeholder consultations (during the drafting stage); and
• Online public consultation (after finalization of Draft NECP).
• Public consultation session on Malta’s Draft NECP
Figure 1 - Public consultation process on the NECP
Early consultations with key stakeholders
Early consultations with key stakeholders were held from April 2018 until October 2018. The aim of
consultations with stakeholders such as licensed fuel suppliers, academia and the business and
industry community in the early stages of drafting of the NECP was to provide stakeholders with an
opportunity to discuss issues of interest and to ensure that sufficient time was provided for the
submission of feedback, whether formal or informal, which could then be effectively considered in the
preparation of the draft plan. Stakeholders were presented with the legislative background of the EU
Energy Union and its five dimensions, the Union’s 2030 targets, the requirements of the Governance
Regulation and the NECP, and were given an opportunity to comment and provide their views on the
direction of Malta’s policies in the five Energy Union dimensions for the forthcoming decade and
beyond. It was highlighted to the stakeholders that the NECP adopts a bottom-up approach and
provides each Member State the opportunity to come up with ambitious, but realistic, national
contributions to the Union’s collective 2030 targets.
17
Individual meetings were held with the following entities which were considered as key stakeholders
with respect to Malta’s national energy and climate policies:
• Building Industry Consultative Council (BICC)
• Malta Developers Association (MDA)
• Malta Business Bureau (MBB)
• Institute for Climate Change and Sustainable Development (University of Malta)
• Institute for Sustainable Energy (University of Malta)
• Malta College for Arts, Science and Technology (MCAST)
• Malta Hotels & Restaurants Association
• The Commission for Environment of CURIA (Il-Kummissjoni Ambjent tal-Knisja)
• Malta Chamber of Commerce
• EneMalta Plc
• EneMed Ltd
• Liquigas Malta Ltd
• Easygas Ltd
• Electrogas Ltd
Additionally, a number of stakeholders were invited but declined.
Public consultation
In order to comply with Article 10 of the Governance Regulation, the second stage of the public
consultation process for Malta’s NECP was conducted in 2019 and taken into consideration in the Final
version of the NECP.
The public consultation process was conducted early in 2019. The process followed the already
established national procedure for online public consultations.
16
Using a platform administered by the
Ministry for European Affairs and Equality, the general public, civil society organisations, trade unions,
business organizations, government institutions and the general public are given the opportunity to
participate in the online public consultation process. A notice of the consultation period was posted
on the website of the Energy & Water Agency, the national entity leading the NECP process, on the
Government’s public consultation portal operated by the Ministry for European Affairs and Equality,
as well as on the MEUSAC website (Malta-EU Steering and Action Committee). Publicity was given due
consideration and open consultation notice advertisements were also posted in the major newspaper
outlets.
Online public consultation took place during March and April 2019. Written feedback was received via
the platform from 13 organisations and/or public citizens. The comments received through the online
platform were subsequently analysed and discussed during subsequent meetings of the Inter-
Ministerial Steering Committee. Each entity represented on the IMSC was requested to take due
account of the comments received falling under its remit and requested to provide feedback on how
these comments would be addressed in Malta’s Final NECP.
16
Online public consultation platform: www.konsultazzjoni.gov.mt
18
Public consultation event on the Draft NECP (April 2019)
MEUSAC, together with the Ministry for Energy and Water Management (MEW) and the Ministry for
the Environment, Sustainable Development and Climate Change (MESDC) organized a consultation
session on the Draft NECP on 4 April 2019. The scope of the consultation session was for stakeholders
to provide their views and feedback on the Plan in person. The event was initiated by the chairman of
the IMSC tasked with the coordination of the development of the NECP who introduced the topic. All
Ministries represented on the IMSC were present for the consultation session. The Energy & Water
Agency then provided a presentation highlighting the legislative background, the process for the
development of the Draft Plan as well as the main contents and objectives of the plan in the five
respective dimensions of the Energy Union. Following the presentation, a discussion ensued and the
floor was opened to all attendees for comments, questions and suggestions. The outcome of the
public consultation event and the comments received were then also discussed post the event at IMSC
level in conjunction with other written feedback received through the online public consultation
process.
Other consultation processes
Apart from the general public consultation on the NECP, a separate public and stakeholder
consultation was conducted within the processes of the Strategic Environmental Assessment (SEA) on
the NECP and the Research & Innovation Strategy for Energy and Water being developed by the Energy
& Water Agency.
Stakeholders were consulted throughout the process of the SEA in order to ensure their effective
participation. All relevant parties were given the opportunity to provide their opinions on the
environmental impacts of the measures proposed in the draft NECP. In order to conform with the
national SEA regulation (S.L. 549.61) a statement of adoption and an outline of monitoring measures
will be made public. The statement of adoption will include a summary of how environmental
considerations have been integrated into the NECP, as well as how the environmental report and the
results of the consultations have been taken into account. The statement will also include monitoring
measures. It must be pointed out that the timeframes for the development and finalization of the SEA
do not align with those of the NECP. At the time of finalization of the drafting of Malta’s Final NECP,
the SEA process was at scoping stage. It is expected that the SEA will be concluded during the course
of 2020 and any major recommendations integrated in future NECP updates.
Additionally, the Energy & Water Agency is developing an R&I strategy for energy and water covering
the period 2021-2030. The development of the strategy included a separate set of stakeholder
consultations focused primarily on research institutes, academia, the national authority responsible
for research & innovation and other stakeholders. This stakeholder consultation was concluded in
October 2019 and will be reflected in more detail in the National R&I Strategy for Energy & Water
which will be published in the course of 2020.
Summary of the Public’s Views
Malta’s Draft NECP, which was put up for stakeholder and public consultation received its fair share
of comments, questions and requests for clarifications. As part of the online public consultation
process, 13 organisations and/or citizens provided written feedback. The feedback received originated
from the general public, the industry, academia, NGOs as well as national authorities and touched
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upon various subjects linked to all five Energy Union dimensions and issues pertaining to the
specificities of Malta. The section hereunder provides a summary of the views of various stakeholders
and the general public on Malta’s NECP. A more detailed description of the feedback received during
the public consultation phase, as well as specific comments from the Ministries and entities
responsible for the development of the NECP can be found in Annex I.
The public provided a number of general and cross-sectoral comments, for example that the NECP
did not sufficiently build on top of previous and existing plans and strategies. The NECP is a holistic
and integrated plan, which streamlines previous reporting obligations in the fields of energy and
climate into one and introduces new reporting obligations in dimensions, such as the internal energy
market, energy security and research & innovation and competitiveness. Comments addressing the
lack of involvement of NGOs during the preparation of the Draft Plan had also been received.
In the area of climate and GHG emission and reductions, the public posed queries regarding Malta’s
level of progress towards its ESR target of -19% for 2030, as well as the Government’s future intentions
regarding the purchasing of allowances to meet this target. The Government was urged to address
mitigation and adaptation to climate change in the plan and acknowledge the negative effects of
climate change in Malta on the environment, health as well as on energy demand. The question of
Malta not attaining it’s ESR target and the purchasing of allowances to cover this gap was also
discussed during the public consultation process. Some of the comments received raised the need for
the application of the ‘polluter-pays principle’ to the services sector, which after transport, is the
second highest consumer of energy.
Multiple comments, questions and suggestions were received in the area of renewable energy. The
general public posed queries in relation to Malta’s RES contribution and urged the setting of
progressive targets for Malta in the area of renewable energy. Other questions were related to the
absence of alternative sources of RES, such as wind, off-shore wind or solar PV in Malta’s energy mix
for the next decade. Malta’s RES contribution reflects the Government’s continued efforts to fully
exploit indigenous RES sources within the present technical and geophysical limitations. The relevant
circumstances affecting renewable energy deployment are described in section 2.1.2 of the NECP. The
issue of joint RES projects and statistical transfers to attain Malta’s RES target, as well as community
incentives in the area of RES and communal solar PV farms were also topics discussed as part of the
public consultation process.
In the area of energy efficiency some of the feedback received pointed out that Malta’s Draft NECP
lacks a serious approach in addressing energy efficiency on the demand side as well as the lack of
effective incentives for energy savings or to curb energy consumption in the future. Concerns were
raised that energy efficiency measures in the commercial sector are not sufficiently addressed and
that the Draft Plan missed the opportunity for mobilizing new local markets to invest and propel
energy efficiency. Feedback received pointed out that energy efficiency measures in the commercial
sector are not sufficiently addressed.
The entities and citizens involved in the public consultation process also raised several issues with
respect to the area of buildings, in particular that the area of energy performance of buildings is lightly
considered in the Draft NECP. Several suggestions were highlighted, such as possible incentives to
promote green rooftops, more stringent enforcement of energy efficiency measures in new buildings,
as well as the integration of renewables in new and refurbished buildings in conjunction with the
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allocation of more space on residential rooftops for the installation of solar water heaters. Some
feedback touched upon how NZEB obligations beyond 2020 would be addressed in Malta’s NECP while
other queries were received in relation to Malta’s Long-term Renovation Strategy, which is seen by
the public as an opportunity to make the building sector more energy-positive. Increasing the financial
attractiveness of the integration of RES in buildings from a developers’ point of view was also
discussed.
Some feedback was also received on the internal energy market and security of supply dimensions.
Awareness was raised with regards to what was perceived as high security, high ecological, high
technological and high governance risks associated to the gas pipeline project. Other citizens and
entities raised queries with respect to future plans for a gas distribution network to serve domestic
users after the commissioning of the pipeline. The importance of utility battery storage systems for
security of supply reasons was also raised during the public consultation process, while other
comments and queries received in this area were related to the energy poverty assessment, the
necessity to put low-income households at the centre when designing policy, and the functionalities
of installed smart meters with respect to providing useful energy consumption information to the
consumer.
A relatively large number of comments were received in the area of transport, which plays an
important role with respect to Malta reaching its targets in the areas of reducing GHG emissions,
energy efficiency as well as renewable energy. Specific comments from participants in the public
consultation process addressed the lack of alternative options for public transportation, showed
support for a mass-transit system and asked about incentivizing and disincentivizing measures with
respect to electric vehicles and ICE vehicles, respectively. Some comments pointed out the necessity
to promote modal shift and reduce the population’s reliance on passenger cars while others stressed
the need to encourage the construction of additional walk-lanes and bicycle lanes in Malta. Additional
queries were raised with respect to second-hand imports of vehicles, which do not contribute to either
an increase in average vehicle efficiency or a reduction in fleet age.
Consultations with other Member States
Malta fully appreciates the benefits which may reaped through engagement in regional cooperation
and has consulted with relevant neighbouring Member States during the development of the NECP in
line with Article 12(2) of the Governance Regulation. Due to Malta’s geographical position at the edge
of the European Union, but connected to the European electricity grid through Italy and in the process
of strengthening this interconnection by the development of a gas pipeline between Malta and Sicily,
the regional consultation process focused on discussions with Italy.
As part of the regional consultation process, a bilateral meeting was held on 11 September 2019
between key representatives from both Member States. During the meeting a number of different
topics relevant to both Member States were discussed, including the possibility of finding common
approaches towards similar challenges to meet 2030 EU targets, and how the two sides could
cooperate more closely on a technical level. Given Malta’s connection to the grid through Italy, a
discussion on the expected developments of the electricity market in Italy and in particular in Sicily,
as well progress on the Malta-Sicily gas pipeline project were also held.
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Iterative process with the European Commission
Discussions for the preparation and coordination of Member States’ Draft and Final NECPs were held
within the framework of the Commission’s Technical Working Group on NECPs with regular meetings
being held to discuss best-practices and information relevant for the development of the Plan.
In line with the Governance Regulation, on 18 June 2019 the European Commission published an EU-
wide assessment of Member States’ Draft NECPs and issued Member State-specific recommendations,
as well as accompanying documents with more detailed information on the Commission’s assessment.
The ten recommendations received by Malta focus primarily on additional domestic measures to
achieve the ESR target, increasing the national ambition in the area of renewables, increasing ambition
towards reaching energy efficiency targets and completing missing sections of the Plan, such as the
Impact Assessment and the R&I dimension. The Recommendations issued to Malta also suggest
providing more information on energy subsidies, analysing interactions with air quality policy, as well
as making improvements to the overall detail of objectives and policies and measures included in the
Plan. In line with Article 34 of the Governance Regulation, Member States have to indicate in the Final
Plan how it has taken due account of the recommendation or otherwise provide a justification. The
below table includes the list of recommendations and whether they have been addressed or
otherwise.
Table 1 - Recommendations on Draft NECP issued to Malta and corresponding justifications
Recommendation
17
Section in which Recommendation has been
addressed/ Justification in case this has not been
addressed
1. Plan additional domestic measures, in
particular in the building and transport sectors,
and quantify their expected impacts, in order to
reduce the significant gap to its 2030 greenhouse
gas target for sectors not covered by the EU
emissions trading system of -19% compared to
2005. For reasons of cost-effectiveness some
transfers of annual emission allocation from other
Member States, as provided for by Regulation
(EU) 2018/842 of the European Parliament and
Council, could be justified.
Malta is bound to reduce its GHG emissions by
19% below its 2005 levels. Malta’s limited
mitigation potential, arising from our service-
based economy have resultant high mitigation
costs coupled with significant socio-economic
considerations. Diseconomies of scale also hinder
resorting to alternative technologies. These
challenges have led us to seek the most flexible
options available in line with the provisions under
the Effort Sharing Regulation, given the limited
geographical area, which restricts options for
enhancement of land-based carbon sinks.
Nonetheless, the NECP is a live document, which
shall be updated with additional, new
decarbonisation domestic polices, and measures
which Government would decide to embark on,
even following the finalisation of its national long-
term decarbonisation strategy.
17
Commission recommendation of 18.6.2019. SWD(2019)268. Available online:
https://ec.europa.eu/energy/sites/ener/files/documents/mt_rec_en.pdf
22
2. Significantly increase the level of ambition for
2030 to a renewable energy share of at least 21 %
as Malta’s contribution to the Union’s 2030 target
for renewable energy, as indicated by the formula
in Annex II under Regulation (EU) 2018/1999 and
after due consideration of relevant circumstances
and national constraints. Include an indicative
trajectory in the final integrated national energy
and climate plan that reaches all the reference
points pursuant to Article 4(a)(2) of Regulation
(EU) 2018/1999 in accordance with that share, in
view of the need to increase the level of efforts for
reaching this target collectively. Put forward
detailed and quantified policies and measures
that are in line with the obligations laid down in
Directive 2018/2001 of the European Parliament
and Council
9
, to enable a timely and cost-effective
achievement of this contribution. Increase the
level of ambition in the heating and cooling sector
to meet the indicative target included in Article 23
of Directive (EU) 2018/2001. Provide more
detailed measures to meet the transport target in
Article 25 of Directive (EU) 2018/2001. Provide
more details on the enabling frameworks for
renewable self-consumption and renewable
energy communities, in line with Articles 21 and
22 of Directive (EU) 2018/2001.
The government’s policy remains to support the
deployment of effective indigenous renewable
energy sources and cooperate at regional level
where this can lead to benefits to all parties. This
overarching policy will be pursued until 2030 with
new initiatives launched and tailored to local
specificities. Malta’s relevant circumstances and
national constraints affecting the deployment of
renewable energy sources and hence Malta’s
contribution towards the Union’s 2030 target, are
described in Section 2.1.2.
The indicative RES trajectory, including the three
reference points in 2022, 2025 and 2027 are
included in section 2.1.2 of the Plan. Additionally,
detailed and quantified policies and measures are
described in Section 3.1.2.
In line with Article 23 of Directive (EU) 2018/2001,
Malta shall endeavour to increase its share of
renewable energy in the heating and cooling
sector, as outlined in Section 2.2 v .
For the scope of meeting the requirements of
Article 25 of Directive (EU) 2018/2001, Malta
intends to consider biofuels from feedstocks
listed in Annex IX of the Directive as twice their
energy content.
Details on the enabling frameworks for renewable
self-consumption is provided in Section 3.1.2.v of
the Plan. The Government will continue to
promote renewable self-consumption of
electricity from Solar PV systems and ensure that
no discriminatory charges apply. In view of the
structure of Malta’s electricity system, it is not
foreseen that renewable energy communities will
develop.
3. Substantially increase the ambition towards
reducing final and primary energy consumption in
2030 in view of the need to increase the level of
efforts to reach the Union’s 2030 energy
efficiency target. Propose more ambitious policies
and measures that would deliver additional
energy savings by 2030. Concrete additional
National circumstances affecting primary and
final energy consumption and other barriers
impede a more ambitious contribution to the
Union’s energy efficiency target. Steep increase in
population and GDP, corresponding growing
demand in the housing market, and the year on
year growth in tourist arrivals, have made it
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energy efficiency measures particularly in the
building and transport sectors are needed in order
to meet to be proposed for the 2021-2030 period.
difficult to restrain an increase in energy
consumption. These national circumstances and
barriers are described in more detail in Section 2.2
of the NECP.
Policies and measures expected to deliver energy
savings by 2030 are outlined in Section 3.2.
4. Specify the measures supporting the energy
security objectives on diversification and
reduction of energy dependency, including
measures ensuring flexibility and possibly the
increased role of demand response in the
electricity sector.
The Energy Security and Internal Energy Market
dimensions in Section 3 have been
complemented with further details on measures
supporting diversification, reducing energy
dependency, contingency planning in the area of
security of supply as well as measures intended to
increase the flexibility of the energy system.
Preventive and emergency measures under the
Gas Security of Supply Regulations have also been
outlined.
5. Further elaborate national objectives and
funding targets in research, innovation and
competitiveness, specifically related to the Energy
Union, to be achieved between now and 2030, so
that they are readily measurable and fit for
purpose to support the implementation of targets
in the other dimensions of the integrated national
energy and climate plan. Underpin such objectives
with specific and adequate policies and measures,
including those to be developed in cooperation
with other Member States, such as the Strategic
Energy Technology Plan.
Malta is in the process of developing a Research
& Innovation Strategy in the areas of energy and
water management for 2021-2030. This strategy
will identify key thematic areas for R&I over the
coming decade, reflecting national policies and
objectives for the energy and water sectors. This
strategy will form the basis of the fifth dimension
of Malta’s NECP. National objectives related to
R&I in energy are specified in Section 2.5, while
policies and measures to reach these targets are
highlighted in Section 3.5 of the Plan.
6. Further improve the level of detail of the
objectives and policies and measures of the final
integrated national energy and climate plan
notably to set clear, measureable and forward-
looking objectives for the internal market
dimension and research, innovation and
competitiveness dimensions; and illustrate to
what extent the envisaged plans of petroleum
exploration are in line with longer-term
decarbonisation goals.
As outlined above, the level of detail of objectives
and policies and measures in the dimension of
research & innovation and competitiveness was
strengthened by the development and inclusion
of aspects of the National Strategy for R&I in
Energy and Water for 2021 – 2030 in the NECP.
National objectives for Malta in the internal
energy market dimension reflect the specific
nature of Malta’s energy and electricity system,
such as its size, having a sole supplier of electricity
and the absence of a liquid wholesale market or
electricity transmission system. The electricity
interconnection level is expected to remain well
above the Union 15% target throughout the
whole projection period, reaching 24% in 2030.
24
Objectives for transmission infrastructure and
market integration are therefore confined by
these realities. Nevertheless, objectives, policies
and measures are described within the relevant
dimension of the Plan. An ongoing Electricity
Supply Study will provide more details on future
energy system solutions.
Apart from the increasing deployment of
renewable energy sources, Malta has no
indigenous energy sources that would provide a
secure energy supply and is therefore dependent
on imported fuels and electricity over the
interconnector to meet its energy demand.
Although the Government will continue to
promote petroleum exploration opportunities,
these should not be considered in contradiction
to the long-term decarbonisation goals of the EU
and its Member States, which stand at the
forefront of the National Energy and Climate
Plans.
7. Complement the mainly qualitative references
to some of the projected investment needs,
expenditures and funding sources, with further
quantification in order to obtain a comprehensive
assessment of overall investment needs to
achieve the objectives, as well as information on
the national and Union financial sources to be
mobilised.
Section 5 (Impact Assessment) was not completed
in time for the submission of Malta’s Draft NECP.
The Impact Assessment, including section 5.3 on
an overview of investment needs and
expenditures was conducted during the course of
the preparation of Malta’s Final NECP in 2019 and
therefore features in the Final NECP. Section 5.3
includes an overview of the projected costs borne
by the Government until 2030 as well as the
expected costs borne by the citizens as a result of
the implementation of Malta’s planned Policies
and measures.
8. List all energy subsidies, including in particular
for fossil fuels, and actions undertaken as well as
plans to phase them out.
Bearing in mind Malta’s specificities, there are no
plans to phase out any energy subsidies at this
particular juncture, while remaining committed
to, inter alia, encourage the adoption of
technologies that can help reduce greenhouse gas
emissions.
More Information can be found in Sections
3.1.3.iv and 4.6.iv.
9. Complement the analysis of the interactions
with air quality and air emissions policy,
presenting and quantifying the impacts on air
pollution for the various scenarios, providing
A quantification of the impacts of implementing
the WPM scenario on air pollution is provided in
Section 5.1.i. of the NECP. A link is made between
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underpinning information, and considering
synergies and trade-off effects.
the NECP and Malta’s National Air Pollution
Control Programme.
10. Integrate just and fair transition aspects
better, notably by providing more details on
social, employment and skills impacts of planned
objectives, policies and measures.
An impact assessment conducted for the purpose
of completing Section 5.2 focuses on several
criteria, such as the economic impact, technical
constraints, social acceptability, legal and
regulatory barriers and quality of life with respect
to the implementation of policies under the WPM
scenario. This assessment shall ensure that
policies and measures are well balanced and
conductive of a just and fair transition.
1.4 REGIONAL COOPERATION IN PREPARING THE PLAN
Elements subject to joint or coordinated planning with other Member States
As explained in Section 1.3 iv. above, Malta’s insularity limits the potential and the need for joint and
coordinated planning with other Member States within the framework for the development of the
NECP. Nevertheless, Malta considers regional cooperation as a key element of its NECP. Regional
cooperation focuses primarily in the Energy Security dimension of the plan, with the gas pipeline
interconnection to the European Gas network being the predominant cross-border cooperation
project in the foreseeable future. Cooperation on this project at government level, in technical and
environmental studies and in permitting procedures is explained in more detail throughout the
relevant sections of the Energy Security dimension and specifically under Section 3.3.ii. Regional
cooperation is also considered within the area of contingency planning under the Energy Security
dimension, such as the efforts made in the Gas Coordination Group. Malta is also open to future
regional cooperation in the area of RES projects were these provides tangible benefits to all parties
involved.
Explanation of how regional cooperation is considered in the plan
Aspects related to regional cooperation are considered in more detail within each individual
dimension under Section 3. As referred to in the point (i) above, regional cooperation is considered
primarily within the framework of the ongoing cooperation on the Malta-Sicily gas pipeline.
26
2 NATIONAL OBJECTIVES AND TARGETS
2.1 DIMENSION DECARBONISATION
2.1.1 GHG emissions and removals
Binding national target for GHG emissions and annual binding national limits
pursuant to Effort Sharing Regulation
Through the ratification of the Paris Agreement, Malta reaffirmed its commitment to address climate
issues to their fullest potential and to contribute towards the European Union’s collective target of
40% reduction of its GHG emissions by 2030 compared to 1990 levels.
Malta is bound to reduce its GHG emissions by 19% below its 2005 emissions pursuant to the Effort
Sharing Regulation. Malta’s limited mitigation potential, arising from our service-based economy,
specifically in the transport and agricultural sectors as well as the legacy effect in solid waste disposal,
have resultant high mitigation costs coupled with significant socio-economic considerations. A thriving
economy, which albeit partially decoupled GDP from emissions, still has residual level-off coupling,
which in turn drives up emissions. Diseconomies of scale also hinder resorting to alternative
technologies. These challenges have led us to seek the most flexible options available in line with the
provisions under the Effort Sharing Regulation (ESR), given the limited geographical area which
restricts options for enhancement of land-based carbon sinks such as forests.
Malta remains committed to continue working towards mitigation action to meet its obligations and
comply with the provisions as listed in the Effort Sharing Regulation. This, whilst acknowledging the
geophysical realities including our climatic conditions, which lead us to not having an array of options
for modal shifts to reduce carbon emissions. Sectoral challenges are various, from economies of scale
and low mitigation potential (as in the case of the agricultural sector) to more challenging technology
and innovation issues (e.g. refrigeration and cooling) to land use conflicts due to the geophysical
reality of our islands (e.g. transport/renewables).
Having said this, Malta’s climate and energy policy features prominently in the political agenda as
reflected through the recent major infrastructural investments in the energy sector. As a matter of
fact, in terms of Malta’s GHG emission profile, electricity generation had historically been the primary
emitter in Malta. Malta experienced a significant reduction of approximately 50% in emissions from
the energy sector due to the shift from heavy fuel oil to natural gas and as a result of interconnection
with mainland Europe.
Malta also recognises climate finance as one of the core issues related to the climate discussion.
Malta’s contributions could be defined as modest due to its size and domestic needs. Nonetheless,
Malta considers that there is a lot more potential in reaching out to others, particularly through
academia. Indeed, Malta offered technical support through scholarship programmes to nationals from
various states, particularly those most vulnerable to climate change. These programmes helped such
states to further enhance specific skill sets required to address climate changes challenges. Malta has
27
additionally made financial contributions towards international climate funding and will continue to
uphold these commitments.
Furthermore, Malta’s Sustainable Development Vision for 2050 sets out aspirations and priorities
towards a low-carbon economy, sustainable mobility, transition towards low-carbon energy and
sustainable buildings and urban development, amongst others. It also sets a precedence for
mainstreaming sustainable development up till the year 2050 and is set to become Malta’s main
guiding principle for developing policies when planning and implementing projects.
This Vision acknowledges the fact that the transition to a low-carbon economy is central to our future
economic development model in view of its win-win opportunities. This in turn provides an
opportunity for the business sector to take advantage of the favourable economic policy towards low-
carbon investment. This will shore up the competitiveness of the country and contribute to lower
emissions, improved air quality and health benefits.
Malta has identified the formulation of a long-term Low Carbon Development Strategy as a useful tool
in the implementation of the objectives of the Paris Agreement, and has given this process due
priority. Malta has initiated the process of developing a national Low Carbon Development Strategy
in accordance with requirements under the UNFCCC, European Union legislation, the Climate Action
Act 2015 (CAP543), and in line with the decarbonisation ambitions of the Energy Union. This strategy
aims to consider national circumstances and realities, especially those aspects that link socio-
economic development with climate action. In relation to this, the Maltese Government published a
Vision Document, in 2017, highlighting its aspirations for socio-economic development in a low-carbon
and climate resilient manner. As such the Maltese Government is committed to:
• Uphold national GHG emission reduction commitments in the EU up to 2020;
• Move towards a reduction of national GHG emissions as opposed to pursing a continued
limited increase in emission level post-2020;
• Progress in reducing national GHG emissions post-2030 in full cognisance of Malta’s economic
development and priorities of the time;
• Set sector-specific GHG emission reduction targets post-2020 to contribute to meeting
reduction commitments made at the national level; and
• Identify and implement opportunities to enhance climate resilience in Malta.
National commitments pursuant to LULUCF Regulation 2018/841
The Regulation on the inclusion of GHG emissions and removals from land use, land use change and
forestry (LULUCF) into the 2030 climate and energy framework (Regulation (EU) 2018/841 of the
European Parliament and of the Council of 30 May 2018 on the inclusion of GHG emissions and
removals from land use, land use change and forestry in the 2030 climate and energy framework, and
amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU) requires Malta to ensure that
GHG emissions from land use, land use change or forestry are offset by at least an equivalent removal
of CO₂ from the atmosphere, the so-called ‘no debit’ rule, in the period 2021 to 2030. Accounting
under the LULUCF Regulation is split over two compliance periods, 2021 to 2025 and 2026 to 2030,
with Malta being required to show that over each of these compliance periods, it is abiding, at least,
by the no debit rule. If this cannot be achieved by actions in the sector, the Regulation also provides
for flexibility mechanisms by which Malta can close any gaps that it may have in respect of the no
28
debit rule: the use of annual emission allowances allocated to Malta under the Effort Sharing
Regulation or buying net removals from other Member States who have successfully increased their
rate of net removals beyond their respective commitment. This Regulation should incentivise Malta
to enhance removals or reduce emissions in the LULUCF sector.
In view of the high population density of the islands and the limited land availability, and to a certain
extent the local climatic conditions (such as limited rainfall), the potential for further reduction of CO
2
emissions through carbon sequestration in vegetation is envisaged to be minimal. The woodland areas
of the Maltese Islands total about 200 hectares. Native forest is all but extinct, cut down by early
colonisers for wood and to clear the land for agriculture and building. These residual woodland areas
are now protected by legislation.
It is to be noted that, at present, Malta is reporting net emissions for the LULUCF sector. Efforts are
ongoing, through capacity building support being provided by the European Commission on the
implementation of the LULUCF Regulation, to revise the methodology for the determination of
emissions and/or removals from Malta’s LULUCF activities, which may in future result in a
recalculation of Malta’s LULUCF sector showing a net removal rate. This would, however, reflect a
methodological change; policies and measures in the LULUCF sector will still remain a requirement for
Malta to ensure that, at least, compliance with the no debit rule can be maintained.
[If applicable] Other objectives and targets, including sector targets and adaptation
goals to meet objectives and targets of the Energy Union and the long-term Union
GHG emissions commitments consistent with the Paris Agreement
The Government is the main influencer in defining climate policy, and thus driving a shift towards a
low-carbon economy as is anticipated to be charted out in Malta’s Low Carbon Development Strategy.
This is of primary importance for the Government to mainstream across all economic sectors as it will
shape national consumption and production patterns, thus reducing emissions without hindering
economic growth.
29
2.1.2 Renewable Energy
Relevant circumstances affecting renewable energy deployment (Article 5(1)(e))
Malta’s potential for renewable energy deployment is mainly affected by physical and spatial
limitations, technological advancement and resource potential, with resource availability and cost of
land being the predominant barriers for further deployment.
The geology and topology of the island does not lend itself to the production of hydro (highest point:
253m above sea level) or geothermal energy (no significant thermal gradient), and wave energy
production is still at the research stage. Fresh water and agricultural land are both scarce, thus biomass
production is not an option. Wind was assessed thoroughly pre-2010
18
, but as explained further
below, conventional wind technology has been found to be largely incompatible with the local
context. These relevant circumstances are expanded below and need to be taken into consideration
whilst analysing Malta’s national contribution in terms of its share of energy from renewable energy
sources.
Solar PV
Solar energy is, so far, the predominant viable renewable energy source in Malta, and this led to efforts
aimed at increasing the local RES-share to focus on the deployment of photovoltaic systems.
An assessment of Malta’s technical potential for solar PV was conducted by the Energy & Water
Agency in 2018. The results are similar (although slightly higher) to those estimated by the Joint
Research Centre in 2019 using datasets from ENSPRESO, an open dataset for GIS-based energy models
on renewable energy potentials, when the same assumptions were applied
19
. The technical potential
assessment indicates that PV deployment post-2020 will be largely limited to suitable rooftops within
the residential, commercial and industrial sectors, as well as a handful of ground-mounted systems.
Sites for ground-mounted systems, predominantly designated for installations above 1 MW, are
relatively limited. The total area of the Maltese Islands (316km
2
), coupled with a population density
of over 1,500 persons per km
2
largely restricts the availability of green field sites, and therefore
Government policy on solar farms was designed to take full advantage of brownfield sites such as car
parks, disused quarries and landfills. For this purpose, the Planning Authority, in collaboration with
the Ministry for Energy and Water Management, published the policy framework for the development
of solar farms in 2017
20
. This provides guidance for the location of new solar farms and identifies
environmentally-relevant specifications that need to be integrated into solar farm development.
However, the relatively high land costs for such sites, driven by increasing land scarcity, together with
significant grid connection costs is impacting the financial viability of solar farms. Disused quarries
earmarked for solar farms are typically rented at rates in the region of 5€ per square metre per year.
Areas (including rooftops) within industrial zones fetch much higher rental rates.
18
Strategy for Renewable Electrictiy Exploitation in Malta Volume 1: Renewable Energy Target and Volume 2: Policy Options Review, Mott
McDonald (2005)
19
https://ec.europa.eu/jrc/en/publication/enspreso-open-data-eu-28-wide-transparent-and-coherent-database-wind-solar-and-biomass-
energy - assumptions similar to those taken by EWA are 85 MW/km2, excluding facades and natural areas (the latter being in line with
Malta’s Solar Farm Policy).
20
https://www.pa.org.mt/en/supplementary-guidance-details/file.aspx?f=12083
30
In the residential sector, uptake of solar PV has been positive and projections indicate that potential
exists for additional installations. Dwellings with a rooftop suitable for PV installations include
terraced, semi- and fully-detached houses, and, in some cases, maisonettes. Based on trends, it is
assumed that apartments are not suitable to host PV installations due to limited available roof space
21
and issues relating to ownership; ownership of the rooftop of apartment blocks is often retained by
the original developer in view of the potential for further development.
The majority of residential units currently under development in Malta are either apartments or, to a
lesser extent, maisonettes
22
, to maximize land utilization in view of the significant net inwards
migration driven by strong economic growth as reflected by an increase in GDP of 6.6% in real terms
in 2017. This trend is projected to be sustained over the next decade. In order to cater for the
increased demand for accommodation, planning policies are encouraging redevelopment of two or
three storey buildings into multi-storey apartment blocks. This has a twofold effect: an increase in the
depth of shadows cast on neighbouring buildings, and an increase in PV investor uncertainty, weary
of possible overshadowing within the useful lifetime of the PV system. This trend therefore leads to
an increase in the number of rooftops which are deemed unsuitable for PV installations. By 2040,
apartments and maisonettes are expected to constitute almost 70% of Malta’s building stock.
Wind Energy
Wind energy projects, both onshore and offshore, cannot be successfully implemented in Malta using
mature technologies due to significant restrictions in the local context, including technical, social and
environmental constraints
Onshore Wind Farms
High population density and limited land area inhibit the development of onshore wind power.
Planning constraints include the potential interference with the safety of airport operations as well as
the significant negative visual impact and proximity to densely inhabited areas. Lack of possible
environmental mitigation strategies to reduce impacts on protected bird colonies further contribute
to the unfeasibility of onshore wind farms.
Offshore Wind Farms
With regards to offshore wind turbines, the deep bathymetry of the Maltese marine area is a major
drawback (Figure 3 - Bathymetric map of the Maltese Islands). In nearshore coastal areas and reefs
with depths of less than 50m, constituting potential areas for the development of fixed-bottom wind
farms, environmental and economic concerns remain significant. There are a number of competing
uses for these zones, especially in view of Malta’s reliance on tourism, maritime and shipping activities
(Figure 4). Furthermore, a significant portion of the sea around Malta is a designated as a Special
Protected Area and Special Area of Conservation. Indeed, assessments on the environmental impacts
21
Rooftops in Malta have to accommodate water tanks, TV antennae/aerials and other building services, besides an access room, and the
area is also used for natural drying and airing of clothes and as a place for family leisure. Therefore, roofs of multi-family buildings often
have very limited space for RES installations.
22
Currently, new maisonettes are being built integrated into multi-apartment buildings and are therefore not considered suitable for PV
installations for the above-mentioned reasons.
31
of the now abandoned project to develop an offshore wind farm at Sikka l-Bajda
23
determined that
adverse impacts on bird species, in particular the Puffinus Yelkouan, the marine environment,
including potential adverse impact on the marine geology as location is characterised by submarine
caves which could collapse, and marine life could not be effectively mitigated. The selected area is a
rafting zone for the Puffinus Yelkouan which is an Annex I species under the Birds Directive and which
also requires protection for its habitat
24
. Figure 2 highlights the inshore marine areas used by Puffinus
Yelkouan as recorded from 31 GPS data loggers, extracted from Borg et al (2010). Malta hosts some
10% of the seabird’s world population. This constituted one of the compelling reasons for the rejection
of this project.
Figure 2 - Inshore marine areas used by Puffinus Yelkouan as recorded from 31 GPS data loggers, extracted
from Borg et all (2010) Source: MEPA
25
Potential offshore sites for Wind Farms were also assessed based on their technical potential by a
study commissioned by the Malta Resources Authority in 2005 (Mott McDonald, 2005). All sites
experience moderate to low wind speeds, with only the site at Sikka L-Bajda marginally exceeding
7m/s (7.16m/s at 80m)
26
. Wind speeds at the other sites vary between 6.41 and 6.66m/s (at 90m)
and the corresponding projected capacity factor varied between 22% and 25%. These figures show
that even the most promising site would still heavily underperform when compared to similar farms
located in more favarouable areas such as North Sea where wind speeds are appreciably higher. This
has significant implications on the level of attractiveness of such sites to potential investors.
23
Sikka l-Bajda was identified, through a study by Mott McDonald (2005) commissioned by the Malta Resources Authority, as the only viable
offshore site with a depth of less than 50m in Maltese waters for the deployment of offshore wind.
24
As required by the Habitats Directive.
25
Percentages shown in figure refer to moving speed of <10km/hr for birds tagged with a GPS logger from Rdum tal-Madonna, and they
indicate feeding and rafting behaviour.
26
Farrugia, R.N. and Sant, T., 2016. A wind resource assessment at Aħrax Point: A node for central Mediterranean offshore wind resource
evaluation. Wind Engineering, 40(5), pp.438-446.
%
10
20
30
40
50
60
70
80
90
32
In light of restrictions imposed by bathymetry, the intensity of commercial activity, the concentration
of marine protected areas, and the wind resource itself, conventional offshore wind energy cannot be
considered economically, socially or environmentally viable based on current technologies.
Floating Offshore
The potential for deep offshore wind energy via floating platforms remains in its infancy; this,
combined with the associated high capital investment costs
27
, implies that floating offshore wind does
not constitute a viable short- or medium-term option for Malta. While certain studies point to the
potential commercialisation of floating offshore wind in specific regions with high wind resource, over
the short- to medium-term, the LCOE of a floating offshore wind farm installed in Maltese waters
would still suffer from relatively low capacity factors and have to rely on significant financial support.
Wind speeds of less than 8m/s are typical of the Central Mediterranean, denoting that wind farms
installed in the area would have a relatively low capacity factor, negatively impacting their financial
viability. In fact, studies which identify potential hotspots for offshore wind energy in the
Mediterranean exclude the Central Mediterranean due to its deep bathymetry and limited wind
resource availability
28
,
29
. Indeed, WindEurope
30
projected limited deployment of offshore wind
technology in the Mediterranean until 2030 (Figure 5).
In light of the above, neither onshore nor offshore wind energy are included as a viable renewable
technology option contributing to Malta’s renewable energy objectives for the EU’s 2030 target.
Nevertheless, Malta shall continue to monitor developments in floating offshore solar and wind
technologies, and will seek to attract pilot projects implementing floating solar or wind in view of their
potential in the longer-term. In this regard, Malta shall seek to attract private investment in floating
solar and/or wind which could benefit from support under the Innovation Fund, or if the technology
would near full commercialization, seek funding under CEF.
27
Cost of floating wind estimated around €180-€200 per MWh (https://www.euractiv.com/section/energy/news/worlds-second-floating-
wind-farm-sets-sail-for-portugal/) though this may be higher depending on grid connection costs.
28
Soukissian, T., Karathanasi, F., Axaopoulos, P., Voukouvalas, E. and Kotroni, V., 2018. Offshore wind climate analysis and variability in the
Mediterranean Sea. International Journal of Climatology, 38(1), pp.384-402.
29
Bray, L., Reizopoulou, S., Voukouvalas, E., Soukissian, T., Alomar, C., Vázquez-Luis, M., Deudero, S., Attrill, M.J. and Hall-Spencer, J.M.,
2016. Expected effects of offshore wind farms on Mediterranean Marine life. Journal of Marine Science and Engineering, 4(1), p.18.
30
WindEurope (2017). Wind energy in Europe: Scenarios for 2030. Available at: https://windeurope.org/wp-content/uploads/files/about-
wind/reports/Wind-energy-in-Europe-Scenarios-for-2030.pdf
33
Figure 3 - Bathymetric map of the Maltese Islands
Figure 4 - Overview of major maritime activities in Maltese waters (Source: Strategic Plan for Environment
and Development of Malta, 2015)
34
Figure 5 - WindEurope projections on 2016 and 2030 offshore wind installations per sea basin (Source:
WindEurope, 2017)
Wave energy
As highlighted in Malta’s NREAP
31
(2017) and a number of studies
32
,
33
, wave technology in Malta faces
several limitations in terms of technology, resources and potential sites. In view of the present state
of technology readiness, reliability and affordability
34
, wave energy is not expected to make any
significant contribution towards Malta’s RES 2030 share.
Grid Stability Considerations
Malta’s RES potential post-2020 is limited by grid integration constraints inherent in small, peripheral,
electricity systems. The highest contribution towards Malta’s renewable energy target is expected to
come from solar PVs, (estimated at approximately 41% of total RES consumption in 2020, increasing
to 42% of the total RES share in 2030 under the ‘With Planned Measures’ scenario). The installations
shall be concentrated within a very limited space (Malta’s footprint), and generation is therefore
highly susceptible to rapid fluctuations in output due to cloud coverage. A preliminary assessment
shows that even with 133MWp of installed capacity, cloud cover can cause rapid variation in output
of up to 60MW (Figure 6). These rapid fluctuations already pose a significant risk to grid stability, as at
times of high insolation PVs will, by 2020, be covering more than half of Malta’s electricity demand
(especially on weekends during the shoulder months). Ensuring system stability will either require
significant spinning capacity, utility scale battery storage or flexible balancing services over the
electricity interconnector with Sicily. However, the latter is limited to 200MW (the capacity of the
interconnector) and would in practice be lower if already meeting part of the load. Furthermore,
31
The Energy and Water Agency (2017). The National Renewable Energy Action Plan 2015-2020 - Office of the Prime Minister, pp.120-123.
32
Scott Wilson Kirkpatrick and Co. Ltd (2003). Malta Significant Wave Height Study. Malta: Malta Maritime Authority.
33
Mott MacDonald (2005). Strategy for Renewable Electricity Exploitation in Malta Volume 1: Renewable Electricity Target. Malta: Malta
Resource Authority.
34
Magagna, D., & Uihlein (2015). Ocean Energy Development in Europe: current status and future perspectives. International Journal of
Marine Energy. 11. 84-104.
35
Malta’s load and generation profile are very similar to that of Sicily; this means that excess RES
generation in Malta would coincide with times of high RES generation in Sicily, reducing its effective
market value. Currently, Malta has no utility scale battery storage facilities, and keeping large spinning
capacity is highly inefficient and may not be technically viable at all times. An assessment is being
carried out by the Government to estimate the additional system costs involved to integrate further
PV capacity. However, from the onset it is already clear that the available capacity (and hence
balancing capability) of the interconnector is one of the main limiting factors.
Figure 6 - The effect of cloud cover on electricity generation by 133 MWp of installed solar PV. Transients of
circa 60MW are experienced within 60 minutes with the current level of installed capacity
Heating and Cooling
In 2017, 802 GWh of fossil fuels were consumed in Malta for heating and cooling, with the largest
contributions coming from LPG and gasoil (Figure 7). More than half of the LPG share is attributed to
households for cooking and spatial heating, with the rest being consumed in the services and industry
sectors. Gasoil, fuel oil and diesel for heating and cooling is almost entirely consumed by the industry
and services sectors for process heating. These fuels are used as alternatives to LPG in cases where
the LPG storage requirements cannot be overcome due to space or safety restrictions.
.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
MW
Time of Day
PV
p
= 133MW
36
Figure 7 - Fuels consumed for Heating and Cooling in 2017
Malta’s projected renewable heating and cooling share depends on achieving the target deployment
of solar and heat pump water heaters between 2021-2030. Also contributing to this are the air-to-air
reversible heat pumps which are projected to increase without the need for any further policy
intervention.
In 2015, a comprehensive assessment on the potential for the application of high efficiency
cogeneration and efficient district heating and cooling in Malta was delivered to the Commission in
accordance with Article 14(1) of Directive 2012/27/EU. This report determined that district heating
and cooling systems are not technically viable or cost-effective solutions for Malta. This makes it more
challenging to address the heating and cooling sectors. Furthermore, Malta’s lack of potential for local
cultivation of biomass and manufacturing of biofuels means that any fuel switch to biomass/biofuels
would require imports of these products at significant additional costs.
National contribution in terms of share of energy from RES in gross final energy
consumption in 2030, including indicative trajectory and reference points in 2022,
2025 and 2027
Meeting Malta’s 2020 RES target
In line with Directive 2009/28/EC, Malta is required to meet a 10% renewable energy share in gross
final consumption of energy by 2020. Malta will meet this target mainly through indigenous sources,
but also through biofuel imports and the use of statistical transfers in 2020. It is projected that Malta
reaches a RES share of 9.3% by the end of 2020, and will therefore be seeking to make use of statistical
transfers to cover the shortfall. This gap is mainly due to a higher-than-envisaged increase in electricity
and energy demand in the very short term that reflects the overall increase in population, tourist
activity and economic growth. Efforts by Government to increase the renewable energy share are
ongoing, but the full exploitation of RES within the technical and geographical limitations referred
above is not enough keep up with the steep increase in demand. Furthermore, interest in investment
in RES (mainly solar) appears to be waning, possibly as a result of other investment opportunities at a
LPG
40%
Petrol
Kerosene
1%
Diesel
10%
Gasoil
40%
Fuel Oil
8%
37
time of rapid economic growth. This was demonstrated by the response to the calls issued by the
Government under the competitive bidding process for solar PV installations of more than 1MW
35
.
The total capacity offered in 2018 under the second call was 35MW but the total bids received
amounted to less than 18MW.
Malta’s efforts to meet its 2020 Renewable energy target and future RES objectives must also be
framed within the context of having to rely on land intensive renewable energy sources such as PV.
Figure 8 highlights how, albeit the final energy consumption per capita in Malta is the lowest amongst
the EU-27, the energy consumption per square km is the second highest, marginally exceeded only by
Luxembourg. It follows that for same percentage targets, the amount of RES which needs to be
extracted per unit of area is much higher in the case of Malta. This is particularly relevant for land
intensive renewables such as PV. Thus, for example to meet a 10% RES share in Greece would require
around 0.015 ktoe/km
2
/year whereas the same RES share for Malta would require almost ten times
higher, 0.145 ktoe/km
2
/year.
Figure 8 - Annual energy consumption per square km and per capita, 2012. Source: Eurostat.
Overview of Malta’s 2030 RES contribution
Taking full account of all the relevant circumstances affecting the deployment of renewable energy
described in the introduction to this section, Malta’s contribution to the 2030 Union target in terms
of the share of energy from renewable energy in gross final consumption is shown in Table 2. Malta’s
RES share, and thus its contribution to the Union’s 2030 target is expected to amount to 11.5% in
2030. Malta’s RES contribution in the three reference years, 2022, 2025 and 2027 is expected to reach
10.3%, 11.0% and 11.6%, respectively. The contribution excludes RES ambient cooling captured by air-
35
Under this scheme, support is provided for solar farms through a competitive process in which investors need to bid for support. The
allocation of capacity is based on the bid price, provided that the submission is administratively compliant.
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
Malta
Romania
Bulgaria
Hungary
Portugal
Greece
Lithuania
Poland
Spain
Slovakia
Latvia
Italy
Cyprus
United Kingdom
Estonia
Czech Republic
France
Ireland
Slovenia
Denmark
Germany
Netherlands
Austria
Belgium
Sweden
Finland
Luxembourg
toe per capita per year
ktoe per square km per year
Annual Energy Consumption per square km Annual Energy consumption per capita
38
to-air heat pumps, as the Commission has not yet established a methodology for calculating
renewable energy for cooling, as required by Directive EU 2018/2001 by December 2021
36
.
It must be noted that under the ‘With Planned Measures’ scenario, Malta expects to make use of
statistical transfers or other types of cooperation mechanisms in 2021 to maintain the minimum 2020
RES share of 10% post-2020. Table 2 also indicates the three reference points in 2022, 2025 and 2027
as required by the Governance Regulation. While in 2022 it is expected that Malta will need statistical
transfers to meet the indicative trajectory - reflecting 18% of the total increase in the share of energy
from RES between the 2020 target and Malta’s contribution in 2030 - in 2025 and 2027 Malta’s actual
RES trajectory is expected to be higher than the 43% and 65% indicative trajectory reference points.
It is to be noted that Malta’s RES contribution is projected to be slightly higher in 2027 compared to
the following three years due to expected commissioning of the Malta-Gozo tunnel; this would
significantly decrease the consumption of gasoil by the ferries and consequently affect the gross final
consumption of energy, which is expected to increase at a relatively slower pace in 2027.
Table 2 - Malta's RES contribution between 2021-2030, %
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Malta's RES
contribution
10.0%
10.3%
10.5%
10.9%
11.0%
11.2%
11.6%
11.5%
11.5%
11.5%
Indicative
trajectory increase
(as per Article 4(2) of Reg.
2018/1999)
18%
43%
65%
Reflected in %-
share
10.3%
10.7%
11.0%
Actual RES
trajectory
9.7%
10.1%
10.5%
10.9%
11.0%
11.2%
11.6%
11.5%
11.5%
11.5%
Estimated trajectories for the sectorial share of renewable energy in final energy
consumption from 2021 to 2030 in electricity, H&C and transport sectors
Estimated trajectories for electricity, heating & cooling and transport are provided in Figure 9. Malta’s
RES share in all three sectors are expected to increase in the projected period until 2030 as a result of
the implementation of policies and measures outlined in Section 3 of the NECP.
36
Malta’s contribution to the Energy Union’s renewable target will be updated to include ambient cooling in line with the Commission
methodology, once published.
39
Figure 9 - Estimated trajectories for sectoral share of RES under WPM scenario, 2021-2030
Table 3 - Estimated trajectories for sectoral share of RES (WPM), 2021-2030
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
RES-E
10%
11%
11%
12%
12%
12%
12%
12%
12%
11%
RES-T
11%
11%
11%
12%
12%
13%
13%
13%
14%
15%
RES-H&C
23%
24%
24%
25%
25%
25%
25%
25%
26%
26%
According to Article 23(1) of the recast of Directive 2019/28/EC on the promotion of renewable
sources, Member States are obliged to take action to increase the share of renewable heating and
cooling by an indicative 1.3 percentage points annually between 2020 and 2030 (calculated as an
annual average for 2021- 2025 and 2025-2030). Since Malta does not have a district heating and
cooling system that allows for the use of waste heat, this 1.3% indicative target is limited to an
indicative 1.1% instead.
The share of renewable heating and cooling is expected to reach a share of 22.06% by 2020 and rising
to 25.71% by 2030. In order to reach the indicative 1.1% target, Malta must endeavour to increase
this RES share to a minimum of 33.06% by 2030. In energy terms, this denotes a minimum increase of
an additional 130 GWh to be reached over a period of 10 years, which is almost double that projected
for 2020.
As indicated in the introductory part of Section 2.1.2, the opportunities for Malta to reach the 1.1%
target are highly challenging:
• the unavailability of a natural gas distribution system on the Maltese territory, excludes the
option to blend biogas;
• no sources of indigenious biomass;
• the possibilities of replacing/blending LPG with bioLPG (mainly used for cooking/industrial
processes) are rather limited due to limited availability and significant additional costs to both
0%
5%
10%
15%
20%
25%
30%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Estimated trajectories for sectoral share of RES
(WPM)
RES-E RES-T RES-H&C
40
households and industry. We consider that the 40% share of LPG is largely unaddressable
over the short to medium term;
• a share of 28% biodiesel blend would be required to meet the 1.1% target by 2030. The
additional cost to industry/services would amount to circa €70 million. Given that all biofuels
would need to be be imported, incurringly additional shipping costs (and associated carbon
footprint), such a measure would not provide any tangible economic benefits to Malta.
However, despite it being an inherently challenging target to reach, Malta plans to make use of
the recast comprehensive assessment referred to in Section 2.1.2 in 2020, to further assess cost-
effective opportunities that could contribute towards an increase in the renewable heating and
cooling share by 2030.
Estimated trajectories by renewable energy technology including expected total
gross final energy consumption per technology and sector and total planned
installed capacity per technology and sector
RES-Electricity
RES-E trajectory is composed of RES generation from Solar PV and waste-to-energy CHP plants (Figure
11). Figure 10 illustrates the projected capacity of solar PV from 2021-2030, based on the
Government’s commitment to encourage higher penetration of solar PV through financial support
schemes and other measures which facilitate uptake. Under the WPM scenario, solar PV is expected
to reach 266 MWp by 2030. This implies a total footprint of approximately 3.2 – 3.7km
2
. Both rooftop
and brownfield sites will continue to be given priority for installations. Some repowering is projected
to begin as from 2026. However, this is to a very small extent prior to 2030 as installations of solar PV
predominantly took place from 2010 onwards.
Solar PV technology is projected to contribute to 42% of Malta’s RES contribution in 2030, being the
largest contributing RES technology in Malta.
Figure 10 - Solar PV capacity and generation under the WPM scenario, 2021-2030
0
50
100
150
200
250
300
350
400
450
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
MW/GWh
Solar PV capacity and generation (WPM)
PV capacity (MW) Repowering (MW) PV generation (GWh)
41
Electricity generation from waste-to-energy plants is expected to contribute a relatively small share
to the RES-E trajectory as shown in Figure 11.
Figure 11 - RES Electricity trajectory between 2021-2030, GWh
RES-Heating and Cooling
Renewable energy in the heating and cooling sector is projected to contribute to 33% of Malta’s RES
contribution in 2030 under the WPM scenario. Figure 12 shows the relative contribution by each H&C
technology towards this share. The Government is planning to implement measures targeting solar
water heaters, heat pump water heaters and waste-to-energy plants with the aim of increasing
Malta’s RES Heating & Cooling share. Air-to-air heat pumps are not deemed to need policy
intervention.
Figure 12 - RES Heating and cooling under WPM scenario 2021-2030, GWh
0
50
100
150
200
250
300
350
400
450
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
RES Electricity 2021-2030, GWh
Solar PV Waste-to-Energy (elec)
0
50
100
150
200
250
300
350
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
RES H&C 2021-2030, GWh
Heat pumps SWH Waste-to-Energy (heat) Biomass imports
42
RES-Transport
The RES-T share (Figure 13) is expected to be predominantly met by an increase in biofuel
consumption, achieved through the extension of the present substitution obligation on importers of
road diesel and petrol, who will be required to further increase the share of biofuels in the fuel mix.
The share of renewable energy from electricity in transport is due to a projected increase in the share
of electric vehicles in the road transport vehicle fleet. Under the WPM scenario, the stock of electric
and plug-in-hybrid electric vehicles is currently projected to increase from just above 1,000 in 2020 to
almost 26,000 by 2030, comprising 6% of the projected total fleet. This shift is mainly driven by
Regulation (EU) 2018/1832 and Regulation (EU) 2019/318 which impose stricter CO
2
emissions
standards on manufacturers of road vehicles post-2020. It must be noted that there is no rail system
in Malta, which further exposes Malta’s reliance on road transport.
Figure 13 - RES trajectory in transport under WPM scenario 2021-2030, GWh
[If applicable] Other national long-term or sectorial trajectories and objectives
The Maltese Government is committed make a decision by early 2020 to establish a cut-off date for
the importation and registration of Internal Combustion Engine (ICE) passenger vehicles in Malta. To
comply with this, a holistic strategy will be developed which will identify measures and necessary
initiatives to support such a transition. This would inevitably have a significant impact on Malta’s
future energy system, including Malta’s share of renewable energy in the transport sector, all of which
would be reflected in future NECP updates and reporting cycles.
0
50
100
150
200
250
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
RES Transport (WPM), GWh
Biofuels Electric vehicles
43
Estimated trajectories on bioenergy demand, disaggregated between heat,
electricity, and transport, and on biomass supply by feedstocks and origin
Bioenergy is projected to grow between 2021-2030 (Figure 14), largely due to an increasing
percentage of biofuels in road transport fuels. Production of bioenergy from waste treatment
facilities, both electricity and heat, and the use of biomass for space heating in the residential sector
are expected to remain largely stable in the projected period. The projected consumption of biofuels,
split by type, is shown in Figure 15. Biofuels are expected to continue increasing throughout the
projected period mainly due to the continued blending of road diesel with HVO, FAME (to a lesser
extent), and advanced biofuels in line with the Renewables Directive. Advanced biofuels are expected
to contribute to 25% of the total consumption of biofuels by 2030.
Malta possesses no sustainable sources of biomass and does not have the land area or resources
required to cultivate energy crops to any practical extent. Furthermore, given Malta’s low heating
demand, targeting increased efficiency in heating and cooling is deemed more appropriate than
promoting the importation of biomass. Imported biomass in Malta primarily includes wood pellets,
fuel wood in logs or briquettes, sawdust and wood charcoal, all of which is assumed to be consumed
by the residential sector for heating purposes. In 2018, 49% of biomass imports originated from EU
countries while 51% was imported from non-EU countries. Under the WPM scenario, imports of
biomass are expected to remain largely stable and to follow current trends.
Figure 14 - Estimated trajectory for bioenergy under the WPM scenario 2021-2030, GWh
0
50
100
150
200
250
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
Bioenergy demand (WPM), GWh
Biofuels in transport Waste-to-Energy (elec)
Waste-to-Energy (heat) Biomass imports
44
Figure 15 - Projections of biofuels under WPM scenario, 2021-2030, GWh
0
20
40
60
80
100
120
140
160
180
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
Biofuels in transport (WPM), GWh
Advanced biofuels Biodiesel FAME HVO
45
2.2 DIMENSION ENERGY EFFICIENCY
Relevant circumstances affecting primary and final energy consumption
Article 6 of the Governance Regulation sets out the contribution-setting process for Member States in
the area of energy efficiency. In their contribution, Member States may take into account national
circumstances affecting their primary and final energy consumption, including the remaining cost-
effective energy-saving potential, evolution of GDP, as well as changes in energy imports and the
energy mix. The section hereunder describes and highlights Malta’s national circumstances affecting
primary and final energy consumption as well as the main barriers impeding a more ambitious
contribution of Malta to the Union’s energy efficiency target.
The diversification of energy sources and supply sources achieved in recent years constitutes an
important milestone for Malta. Over the past five years, Malta has transformed its energy mix used
for electricity generation from one based on heavy fuel oil and gasoil to a more sustainable energy
mix based on natural gas, electricity imports and renewables. The increased efficiency of the new gas-
fired generation plant, commissioned in 2017, significantly reduced primary energy demand in Malta.
Nonetheless, increasing population, and corresponding demand in the housing market, and the
growth of tourism have intensified pressure on land and scarce natural potable water resources. Steep
population and GDP growths in recent years have indeed made it difficult to restrain an increase in
energy consumption. From 2010 to 2018, the average annual growth rate of Malta’s population has
amounted to 1.8%, which represents the second largest annual increase in the EU after Luxembourg
and is nearly ten times the EU28 average of 0.2%
37
National population projections used for the
development of Malta’s NECP, which are based on data published by the National Statistics Office
(NSO) and the Ageing population report with adjustments for net immigration and natural increase in
population, show that Malta’s population should increase from almost 500,000 in 2020 to 554,882 by
2030. In July 2019, Eurostat published an update of demographic projections with Malta’s figures
significantly revised over the medium to long- term. While in the projections used for the NECP Malta’s
population would have reached 573,531 by 2040, under Eurostat’s projections Malta’s population
reaches 661,550. While Maltese authorities are cautious about the Eurostat methodology
38
it is
evident that increases in population would inevitably affect Malta’s future energy demand.
Table 4 – National NECP Population projections, thousands
2020
2030
2040
Population
496,790
554,822
573,531
In terms of GDP growth, projections are based on the assumption that the current trend of high annual
economic growth peaked in 2017 at 6.6% and will start to slow down and stabilize in the future,
although maintaining a relatively strong level of 3.5% by 2030. Based on national projections, it is
37
Based on Eurostat data on population on 1 January [demo_pjan], updated 6.6.19
38
Eurostat projections are underpinned by an upward revision in the net-migration assumption as the Eurostat projection methodology
assumes that all migrant workers settle and retire in Malta. On the other hand, local studies establish that foreign workers only stay in Malta
for a temporary period, with an average length of stay of foreign workers of 3.5 years.
46
expected that the outcome of GDP and population projections leads to an increase in GDP per capita
from over 20,000 EUR in 2017 to almost 30,000 EUR by 2030. Although there is an element of
decoupling between energy and GDP, increasing energy demand in absolute terms is expected to
continue post-2020.
Malta has the second lowest final energy consumption per capita across all EU Member States, only
slightly above half of the EU average. This is a result of different factors including climatic conditions
and lack of energy-intensive industry. Heating requirements in Malta are on the lower end of the scale
when compared to other Member States, whereas cooling is provided by heat pump technology,
which in itself is already deemed as being one of the most efficient technologies. However, this also
means that interventions would need to be performed higher up in the marginal cost curve and are
often not viable financially. On the other hand, the changing landscape, whereby a higher share of the
population is living in apartments as opposed to single unit buildings, and higher expectations with
regards to thermal comfort, means that an increasing number of households are resorting to air
conditioners to achieve the desired comfort level rather than relying on natural ventilation.
Furthermore, the shift from single unit buildings to apartments also implies that the most effective
options to reduce the carbon footprint of households i.e. the installation of photovoltaic panels and
solar water heaters, are not always a possible option.
A similar situation exists in government owned and occupied buildings. A case study commissioned by
the Government of Malta to evaluate possible options to renovate a number of typical government
office blocks highlighted that given the low energy intensiveness of activities in the selected buildings,
the return on investment for the majority of the renovation options is quite low. Consequently, in
some cases the payback period may exceed the expected building or improvement duration.
Malta’s share of final energy consumption in the transport sector is at around 55%, which is indeed
much higher than the EU average. It must be pointed out, however, that by virtue of its geographic
isolation, 40% of the final energy consumption in the transport sector is attributed to aviation. This is
a result of both a higher number of tourist arrivals, which has increased from 1.4 million in 2012 to 2.6
million in 2018 (a staggering 80% growth), but also the lack of real alternatives for Maltese citizens to
travel abroad, there being no fixed link to mainland Europe. The same can be said for consumption by
the road transport sector which, albeit several initiatives to promote alternative means of transport,
remains heavily dependent on private cars as the principal means of transportation. So far studies
have shown that there is insufficient activity to support a mass transit system. However, the
Government shall continue to monitor demographic changes and developments in transport demand
whilst assessing the future viability of such a solution from an environmental and financial
sustainability perspective. The highly built Maltese landscape (over 33% is developed) limits options
for exclusive bus lanes or lanes dedicated to other means of transport. The electrification of the
transport sector in Malta is expected to follow trends across Europe and uptake largely depends on
affordability and availability of vehicles. The Government plans to continue supporting and
incentivizing the electrification of the transport sector through grants and specific measures. The
Government also intends to establish a cut-off date for the importation and registration of Internal
Combustion Engine (ICE) passenger vehicles in Malta. A decision will be taken on this by early 2020.
47
Malta’s share of final energy consumption in industry is also significantly lower than the EU average
and as an open, service-based economy, Malta is characterised by low energy intensity. In 2017,
Malta’s energy intensity (calculated as gross inland consumption divided by GDP) amounted to
0.09 ktoe/€. In comparison to other Member States in 2016 and 2017, Malta’s energy intensity was
third lowest in the EU behind Denmark and Ireland. Heavy consumers of energy in the industrial and
services sectors are targeted through regulations and voluntary agreements encouraging the adoption
of energy efficient technologies.
The factors mentioned above along with the specific characteristics of Malta’s energy system and
market, such as its small nature, the existence of a single electricity supplier, and the absence of
natural gas networks and district heating and cooling networks substantially limit the range of
measures available to meet energy savings obligations under the Energy Efficiency
Directive. Notwithstanding this, Malta is doing its share to increase energy efficiency in the various
end-use sectors and will continue to implement energy efficiency policies and measures in line with
the EU’s energy acquis. The Government is also committed to continue leading by example and as
described in the following sections will be implementing a number of measures to promote energy
efficiency.
Indicative national Energy Efficiency contribution to achieving Union target
The EU’s 2030 energy efficiency target of 32.5% is measured with reference to the projections
performed by PRIMES in 2007. Malta’s indicative energy efficiency contribution to the 2030 target is
an energy intensity level of 0.07 toe/€
2005
as compared to a level of 0.15 toe/€
2005
in 2005. Both trends
project a decoupling between energy and GDP; however, the energy intensity projected in this Plan is
lower than that projected by PRIMES (Figure 16).
Figure 16 - Malta projections of energy intensity compared to those from PRIMES 2007 database
The primary energy and final energy consumption levels in absolute terms are projected to be
1,051 ktoe and 786 ktoe respectively (Figure 17).
48
Figure 17 - Projected primary and final energy consumption levels in absolute terms, ktoe.
Energy intensity is being defined as the ratio between primary energy consumption and gross
domestic product at 2005 constant prices. In projecting primary energy consumption, it is assumed
that: (i) renewable electricity and electricity from waste-to-energy plants is dispatched first, followed
by a mix of conventional plants running on natural gas and electricity imported over the
interconnector: and (ii) the share of distribution losses is constant for the period 2021-2030, based on
the average ratio of losses in recent years. The share of electricity imported over the interconnector
is projected to vary between 10 and 20%. This is relevant as a change in this share would have a
corresponding impact on the projected primary energy consumption in view of the way Eurostat
accounts for the efficiency attributed to the interconnector.
Cumulative amount of energy savings to be achieved over period 2021 – 2030
under Article 7(1)(b) of EED on energy savings obligations
As outlined above, Malta’s energy market exhibits specific characteristics such as the existence of a
single electricity distributor, the absence of natural gas or district heating and cooling networks as well
as the small number and size of fuel suppliers which substantially limits the range of measures
available to the policy maker to meet the energy savings obligations. These specific characteristics are
compounded by the small size of the energy market. This is fully recognised under article 7(1)(b) of
the revised Energy Efficiency Directive, whereby Malta is required to achieve new savings each year
from 1 January 2021 to 31 December 2030 equivalent to 0.24% of annual final energy consumption
averaged over the most recent three-year period prior to 1 January 2019.
Malta is experiencing remarkable growth in terms of both economy and population. Real economic
growth in Malta in 2017 stood at 6.6%, underpinned by a 2.2% growth in the total population. In line
with the sustained economic growth, Malta has also seen an improvement in employment figures
which registered a 3.7% increase in 2017. The growth in population, employment and economic
activity resulted in a 7% increase in total final energy consumption. The steep increase in population
and GDP in such a relatively short time span has made it difficult to restrain energy consumption,
1051
786
0
2
4
6
8
10
12
14
16
0
200
400
600
800
1000
1200
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Primary energy consumption (excl heat pumps)
Final energy consumption (excl heat pumps)
GDP
49
which maintained an upwards trend during 2018 and 2019. Figures for final energy consumption are
provided in Table 5.
Table 5 - Final energy consumption, ktoe.
Year
Final Energy Consumption
39
[ktoe]
2016
583
2017
624
2018
661
The provisional average final energy consumption for the period 2016-2018 amounts to 622.7 ktoe.
This translates into an average of 1.5 ktoe of new savings required each year (based on an indicative
linear trajectory) from 1 January 2021 to 31 December 2030 reaching 82.2 ktoe of cumulative energy
savings by end 2030.
Indicative milestones of the long-term strategy for the renovation of the national
stock of residential and non-residential private and public buildings
Malta is aware of its commitments to develop a long-term renovation strategy to support the
renovation of the national stock of residential and non-residential buildings, both public and private,
in accordance with Article 2a of Directive 2010/31/EU. In line with this obligation, the first long-term
renovation strategy shall be submitted by 10 March 2020. In view of this, no indicative
milestones of the long-term renovation strategy are included as part of the NECP.
Total floor area to be renovated or equivalent annual energy savings to be achieved
from 2021 to 2030 under Article 5
The total floor area to be renovated or equivalent annual energy savings to be achieved from 2021 to
2030 under Article 5 on the exemplary role of public bodies’ buildings of Directive 2012/27/EU is not
available.
[If applicable] Other national objectives in areas such as energy efficiency in the
transport sector and with regard to heating and cooling
Malta does not have other national objectives in areas such as energy efficiency in transport and
heating & cooling. Measures and actions undertaken by Malta, including in these sectors, are
described under Section 3.2 of the Plan.
39
Data is based on the latest national energy balance figures which will be reflected in future Eurostat updates. The data
provided for 2018 is still provisional.
50
2.3 DIMENSION ENERGY SECURITY
The elements set out in Article 4(c)
The Energy Security dimension needs to be looked at within the unique context of a geographically
isolated island Member State with a high import dependency due to the lack of domestic energy
sources, with the exception of renewables the deployment of which is in itself largely constrained by
physical limitations and resource potential. The specific characteristics of Malta’s energy system and
market, such as its small nature, the existence of a single electricity supplier, the absence of natural
gas pipeline interconnection are all factors which affect Malta’s security of supply.
The projected growth in energy demand until 2040 under the ‘With Planned Measures’ scenario will
require more energy, which in turn will require higher deployment of RES, more reliance on electricity
imports over the interconnector and possibly additional conventional local generation capacity
40
. It
will also require a more flexible energy system which amongst others incorporates storage and takes
advantage of opportunities for demand side management. The Energy and Water Agency
commissioned a study which will assess how Malta can ensure a secure power system whilst remain
aligned with its international commitments on decarbonisation.
Malta’s National Energy Policy (2012) underlined the Government’s commitment to the diversification
of energy sources and contingency planning in the case of supply disruption, in order to achieve
greater security of supply. The emphasis on diversification seeks to ensure diversification in terms of
energy sources, procurement sources, exporting country and supplier. Since the adoption of the
National Energy Policy, in line with the objectives mentioned therein, Malta’s energy system has
undergone multiple changes, such as the commissioning of a 200MWelectricity interconnector with
Sicily in 2015 and the restructuring of the local power generation capacity to run on natural gas (LNG)
while decommissioning inefficient units fired by heavy fuel oil and the old Marsa Power Station. This
has significantly reduced the carbon footprint of the electricity generation mix, which is now based
primarily on natural gas, electricity imported via the interconnector and the increasing share of
electricity produced by photovoltaic installations, while also maintaining standby gasoil generation
capacity (including dual fired diesel engines) available as back-up in the event of an emergency, a
feature contributing to Malta’s security of supply.
The objectives set out in the 2012 policy remain, to a large extent, still valid today and even post-2020,
whilst the measures necessary to achieve these objectives have to be adapted to new realities and
developments within the global energy market, the EU’s internal energy market as well as local
developments, such as the expected substantial increase in population, increased demand in the
labour market and growth of tourism and energy demand. Energy security must also be tackled in
conjunction with the long-term objectives of decarbonisation of the energy system and the economy
as a whole.
Malta’s high-level objectives in the area of energy security as set out in the NECP can be summarized
into the following:
- Continued diversification of energy sources and suppliers;
40
The energy modelling framework used to project Malta’s WEM and WPM scenarios for the purpose of the NECP did not
consider peak energy demand situations caused by extreme weather conditions, etc but focused on a ‘normal’ day.
51
- Reduction of import dependency through the deployment of indigenous sources of renewable
energy whilst taking into account the specificities of Malta’s energy system;
- Increasing the flexibility of the national energy system, including through the roll-out of cost-
effective, innovative solutions such as storage;
- Periodic contingency planning in the case of supply disruption for the electricity, gas and oil
sectors;
- Energy security in the context of the long-term objective of decarbonisation of the energy
system and increased deployment of RES;
National objectives with regard to increasing the diversification of energy sources
and supply from third countries
Natural gas, which is used as fuel in the power generation sector is currently imported in the form of
LNG. There are currently no gas pipeline interconnections, however a Final Investment Decision on
the construction of the Melita Trans Gas Pipeline project (MTGP) between Malta and Sicily is expected
to be taken by 2020 subject to financing. LNG is imported via marine carriers and held in a Floating
Storage Unit (FSU) supplying LNG to a regasification plant and to Delimara 3
41
and Delimara 4
42
power
plants. LNG is procured on the international market, which provides flexibility in terms of sources of
origin. In 2017 and 2018 LNG was delivered from 8 different countries of origin.
A physical connection to the European gas network would result in a more reliable, secure and energy
efficient form of transport of natural gas as it will replace the LNG supply chain, which has both a limit
in its technical capacity and its susceptibility to adverse weather conditions. MTGP is being designed
with bi-directional flow capability, and hence may provide for future reverse flow from Malta to Italy
(European gas grid) in case of emergency gas disruption situations. This would facilitate the
formulation and implementation of preventive, emergency and solidarity action plans at both national
and EU regional levels as required by the Security of Gas Supply Regulation. The gas pipeline project
is described in more detail in Section 3.3.i.
National objectives with regard to reducing energy import dependency from third
countries
As mentioned above, given Malta’s unique geographical location tied with the absence of domestic
energy sources (with the exception of indigenous renewable sources) and the specificities of Malta’s
energy system, make it extremely challenging to reduce energy import dependency in general,
including from third countries. In view of this, Malta’s objectives with regard to reducing import
dependency are interlinked with national objectives focusing on the continued deployment of
domestic renewable energy sources and the over-arching long-term goal of decarbonizing the energy
system. Should the Melita TransGas Pipeline come into operation, Malta would strengthen its
interdependency with other EU Member States by being connected to the Trans-European Natural
Gas network. This would eliminate Malta’s current reliance on transportation routes of LNG from third
countries.
41
Delimara 3 (D3): 8 gas-fired turbines with a maximum rated capacity of 152 MW. 4 of the 8 engines are dual fuel and can
also run on gas-oil, supporting security of supply.
42
Delimara 4 (D4): 205 MW gas-fired high-efficiency combined cycle gas turbine (CCGT) commissioned in 2017.
52
To strengthen the diversification of energy supply and reduce energy import dependency, Malta’s
objective in the area of renewable energy is to fully exploit all cost-effective indigenous renewable
energy sources whilst also contributing to the long-term goal of decarbonisation of the energy system.
Nevertheless, given the limited options for cost-effective indigenous sources due to reasons explained
in the decarbonisation dimension, Malta’s reliance on energy imports persists and is expected to
remain high in the projected period.
National objectives with regard to increasing the flexibility of the national energy
system, in particular by means of deploying domestic energy sources, demand
response and storage
Increased flexibility of the national energy system will be tackled by the Government and energy
system operators through multiple actions:
- Increased deployment of domestic renewable energy sources and their safe integration in the
energy system;
- The Government will continue to assess innovative, viable and cost-effective solutions tailored
to the specificities of Malta’s energy system, such as the deployment of energy storage
solutions, which would incorporate aspects related to increased RES generation;
- The Government will continue to assess solutions for ensuring system stability with respect to
grid integration constraints inherent in small and peripheral electricity systems;
The ongoing study commissioned by the Government will assess the economic and technical viability
of flexibility solutions for the power system for the upcoming decade and beyond.
2.4 DIMENSION INTERNAL ENERGY MARKET
2.4.1 Electricity interconnectivity
The level of electricity interconnectivity aimed for in 2030
The electricity networks in Malta and Sicily (Italy) are linked by a 200MW HVAC interconnector,
connecting Malta to the European electricity grid, which came into full operation in 2015. This
contributes to the robustness of the electricity system and hence the security of supply in Malta, while
enabling the trading (predominantly for import and balancing) of electricity on the Italian electricity
wholesale market. Malta is considered as a foreign virtual consumption/production zone within the
Italian market. The interconnector is operated by Enemalta and considered as part of its distribution
system.
Malta’s electricity interconnectivity level is projected to be at 24% by 2030 under the WPM scenario,
remaining well above the EU 15% interconnectivity target. The Government is currently undertaking
an assessment to determine which infrastructure requirements are required in the medium-term
(until 2035) to ensure the desired level of generation adequacy is maintained. In the area of electricity
53
interconnectivity, Malta’s objective until 2030 in the area of interconnectivity is therefore to remain
above the 15% EU target.
Figure 18 - Electricity interconnectivity level under WPM scenario
Indicators of urgency of action:
1) Price differential in the wholesale market exceeding an indicative threshold of 2EUR/MWh
between Member States, regions or bidding zones
Enemalta is obliged to dispatch electricity from local generation plants and/or from the interconnector
based on their order of economic merit. Any imbalances between the volumes determined on the
day-ahead market and actual electricity flows over the interconnector are settled at the prices
calculated using the methodology determined by AEEGSI (now ARERA) through its decision
549/2015/R/EEL (Deliberazione 20 Novembre 2015: Disciplina degli sbilanciamenti effettivi applicabile
all’interconnessione Italia-Malta). In the absence of a liquid wholesale market in Malta, the Regulator
(REWS) determines a proxy of the wholesale market price on an annual basis by estimating the
variable cost of meeting the demand forecast for a given year from local fossil fuel generation and
imported electricity, excluding that portion of forecasted demand which is not expected to be met by
conventional sources or imported electricity. The proxy is published annually in Schedule 4 of SL.
545.27 and was included in the State Aid decision issued in relation to the notified competitive bidding
process for the granting of aid to generators producing electricity from RES with capacity of 1MWp or
more. However, given the structure of the electricity system in Malta, the proxy for the market price
is not deemed to be an appropriate indicator to benchmark against the 2EUR/MWh indicative
threshold.
2) Capacity of interconnector in relation to Malta’s Peak Electricity Load
The nominal transmission capacity of the interconnector is 200 MW. Based on projections of national
peak load under the WPM scenario, it is expected that the capacity of the interconnector shall remain
0%
5%
10%
15%
20%
25%
30%
35%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Electricity interconnectivity (WPM)
WPM 2030 EU Target
54
above the indicative threshold of 30% of peak load
43
throughout the projected period until 2040
(Figure 19). Nevertheless, moving towards 2040 the nominal transmission capacity of the
interconnector will be just sufficient to satisfy this 30% threshold. This is being taken into account in
the assessment currently being conducted by the Government, and the best level of interconnectivity
will be reviewed once this is concluded.
Figure 19 - Nominal transmission capacity of interconnector vs 30% of peak load (WPM), 2018-2040
3) Capacity of interconnector in relation to installed RES
The capacity of the interconnector is not expected to be exceeded by the indicative threshold of 30%
of projected installed renewable electricity generation capacity between 2021-2030 under the WPM
scenario, as shown in Figure 20. However, in the context of Malta’s electricity system, the 30%
threshold has limited relevance. RES electricity in Malta is almost exclusively generated from
photovoltaic systems with no storage capability and significant intermittency caused by highly variable
and localized cloud cover.
43
The projection of peak load does not take into account potential (and likely) variations from the climatic average, that is,
the impact of temperatures on peak loads.
0
100
200
300
400
500
600
700
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
MW
Capacity of interconnector vs 30% hourly peak load (MW)
Interconnector capacity
Hourly peak load (MW) - average year
30% of peak load
55
Figure 20 - Nominal transmission capacity of interconnector and installed RES generation capacity, 2018-2030
Figure 21 – Solar PV generation during a typical day in April with intermittent cloud cover (MW)
Figure 21 shows how, with an installed PV capacity of 133MWp, transients of circa 60MW are
experienced within 60 minutes. As the installed renewable electricity generation capacity grows to a
projected 266MWp by 2030, these transients are expected to increase proportionally. In view of the
relatively small size of the Maltese grid, such transients are significant and consequential, resulting in
interconnector imbalances requiring rapid load shifting, as well as frequent start-up and shutdown of
the conventional generating plants. In practice this means that the interconnector capacity needs to
handle the full extent of the imbalances, at least until conventional power plants can be ramped up,
if spare capacity is available. This scenario also has significant implications for the DSO which is
responsible for balancing the Maltese electricity system, which could be partially mitigated if the
Italian electricity intraday wholesale market (with reference to the Sicilian bidding zone) would allow
bids closer to gate closure time. The study commissioned by the Ministry responsible for Energy shall
0
50
100
150
200
250
300
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
MW
Capacity of interconnector below 30% of installed RES
generation capacity
Interconnector capacity
Installed RES generation capacity (Solar PV)
30% of installed RES capacity
.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
MW
Time of Day
PV
p
= 133MW
56
identify options to optimize system costs whilst increasing its flexibility to absorb further renewable
energy sources.
2.4.2 Energy transmission infrastructure
Key electricity and gas transmission infrastructure projects and modernisation
projects
Electricity transmission infrastructure
There is no electricity transmission system in Malta and hence no transmission system operator (TSO).
Malta was granted derogations pursuant to Article 66 of Directive EU/2019/944 from the
requirements of Article 43 (Unbundling of transmission systems operators), Article 35 (Unbundling of
DSO), Article 6 (Third party access), and until 5th July 2027, from Article 4 (Free Choice of Supplier).
Natural Gas Transmission Infrastructure Projects
The proposed Malta-Italy Natural Gas Pipeline (MTGP) (Project of Common Interest 5.19) is described
in Section 3.3.i. under the Energy Security dimension.
Modernisation projects
Malta’s electricity generation infrastructure recently underwent major modernisation. This included
new, upgraded and more efficient generation capacity which allows the DSO to meet future demand
with significantly higher efficiency and lower emissions. Between 2014-2017, the DSO invested over
€100 million to upgrade and expand major nodes of the national electricity network and improve
quality of service. Therefore, no other major modernisation projects are envisaged in the short-term.
Main infrastructure projects envisaged other than Projects of Common Interest
LNG storage as a back-up in case of gas disruption
The Energy and Water Agency, in cooperation with Transport Malta, conducted a feasibility study,
funded under the CEF Synergy, to assess the potential of LNG as marine fuel in Malta. The first part of
the study concluded that while the demand for LNG bunkering in the Central Mediterranean is
expected to increase at a rather modest rate during the next decade, medium- to long-term solutions
will rely on access to LNG storage facilities.
Based on the outcomes of this study, synergies with the power sector and the option of having an LNG
storage facility to cater for potential gas disruptions shall be explored in the framework of the ongoing
study by the Government.
57
2.4.3 Market integration
National objectives related to other aspects of internal energy market, such as
increasing system flexibility, market integration and coupling, smart grids,
aggregation, demand response, storage, distributed generation, mechanisms for
dispatching, re-dispatching, curtailment and real-time price signals
There is no liquid wholesale market in Malta. Malta is also eligible to derogate from the application
of a number of provisions of Directive (EU) 2019/944. These acknowledge the specificities of the
Maltese electricity system, in particular its size (consumption of circa 2.4TWh per year) and its
peripherality at the edge of the EU grid. These features also contribute to a significant cost to ensure
the desired level of generation adequacy as recognised by EU Commission’s decision SA.45779 which
approved availability payments as part of a Power Purchase Agreements and Gas Supply Agreement
for the provision of additional generation capacity and gas supply. Enemalta plc is designated as the
sole supplier of electricity in Malta.
[If applicable] National objectives related to the non-discriminatory participation
of renewable energy, demand response and storage, including via aggregation, in
all energy markets including a timeframe for when the objectives should be met
The Electricity Market Regulations (SL. 545.13), subject to the fulfilment of requirements related to
the maintenance of reliability, safety and stability of the distribution system, oblige the DSO to:
• Guarantee the distribution of electricity produced from RES wherever technically feasible and
with regard to system stability;
• Provide for priority access to the distribution system of electricity produced from RES;
• Give priority to generating installations using RES
44
; and
• Ensure that appropriate distribution systems and market-related operational measures are
taken in order to minimise the curtailment of electricity produced from RES.
National objectives with regard to ensuring that consumers participate in the
energy system and benefit from self-generation and new technologies, including
smart meters
In line with its programme to ensure an efficient distribution system, Enemalta has equipped 99.6%
of its consumers with smart meters and has adopted a tariff system that favours the prudent use of
energy. Objectives and actions concerning renewable self-generation are discussed in section 3.1.2.vi.
The expected increased share of renewable self-consumption by consumers with an installed PV
system would provide additional benefits in the form of reduced stress on the electricity grid, in
particular during peak hours in the summer months.
Additionally, a second generation of smart meters are being installed which will allow the consumer
to be more aware of his energy consumption. This will be done through the consumer energy
44
This shall be aligned with Article 12 to Regulation (EU) 2019/943.
58
management system where in-house display systems, smart phones and other devices will provide
the consumer with real-time information on their consumption. Through this readily accessible
information, the consumer has the opportunity to better understand his consumption patterns,
resulting in increased energy conservation.
National objectives with regard to ensuring electricity system adequacy, as well as
for the flexibility of energy system with regard to renewable energy production,
including a timeframe for when the objectives shall be met
Measures related to the flexibility of the energy system with regard to renewable energy production
are set out in Section 3.3.i. Enemalta is responsible to ensure the desired level of electricity system
adequacy. Given the small size of Malta’s electricity system which includes two power plants (at the
same site), a peaking power plant (also at the same site), an interconnector with Sicily, and several
small-scale PV generators, Enemalta adopts a N-1 approach when establishing generation system
adequacy. In other words, Enemalta aims to be in a position to still meet the peak demand in the event
of the failure of the largest generator. Enemalta shall continue to abide by the national objective to
maintain the same level of generation adequacy, based on the present approach.
Furthermore, in view of current grid integration issues of renewables on the low voltage side,
Enemalta shall continue to upgrade its sub-stations with transformers integrated with voltage tap-
changers, as well as take onboard new technologies which mitigate against these issues and allow
further deployment of small scale PV systems on rooftops.
Support for additional PV capacity shall also be aligned with the exigencies of a stable grid and shall
consider options which facilitate the integration of battery storage. This promises to provide several
benefits, including mitigation of overvoltage on the LV network, peak shaving, increased self-
consumption and demand management. However, this depends significantly on the availability of
storage solutions at an appropriate price point, such that any Government intervention can yield the
desired results.
National objectives to protect energy consumers and improve the competitiveness
of the retail energy sector
Competition in the supply of fuels is ensured through existing legislation enforced by the Regulator
for Energy and Water Services and the Malta Competition and Consumer Affairs Authority. A number
of suppliers are active in this sector.
There is only one supplier of electricity in Malta.
Details about policies and measures addressing vulnerable and energy poor consumers is provided
under Section 3.4.3 iv. and under Section 3.4.4.i. related to Malta’s assessment of energy poverty.
59
2.4.4 Energy poverty
[If applicable] National objectives with regard to energy poverty
Malta’s assessment of the number of households in energy poverty, in line with Article 3(3)(d) of the
Governance Regulation is described in section 3.4.4. The assessment concluded that Malta does not
have a significant number of households under energy poverty and therefore national objectives in
this area have not been set. Nevertheless, as described in 3.4.4. Malta will continue to assess potential
measures focusing on the alleviation of energy poverty and vulnerable groups of consumers.
2.5 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS
National objectives and funding targets for public and private research and
innovation relating to the Energy Union
Malta’s objectives for R&I relating to the Energy Union are defined in the Draft National Strategy for
R&I in Energy and Water 2021-2030
45
. This is the first sectoral-specific Strategy which relates to energy
and low-carbon technologies. During the upcoming ten-year period, Malta will seek to support and
bolster R&I initiatives relating to the dimensions of Energy Union, specifically those which address
national policy priorities and challenges, and those which contribute to national competitiveness and
economic growth. This Strategy also seeks to strengthen and increase coordination and cooperation
on R&I projects between the public sector, research institutions and business enterprises.
The Strategy places the research and the innovation aspects of R&I on equal footing, both considered
to play an important role in contributing to the realisation of national ambitions relating to
decarbonisation and industrial competitiveness. In the same vein, multidisciplinary research is
emphasised and encouraged by the Strategy, which foresees support of R&I initatives from
engineering and natural sciences, to digitalisation and artificial intelligence, and socio-economic and
behavioural research. Within this multidisciplinary framework, a number of priority areas for R&I
during the period 2021-2030 are identified (Figure 22). Those relating specifically to dimensions under
the Energy Union include the following: (i) renewable solutions for islands; (ii) integration of RES
electricity; and (iii) energy efficient solutions for industry and services. Note that these are the priority
areas included in the Draft Strategy, selected based consultations with experts and early engagement
with stakeholders. These are subject to updates/modifications based on the feedback received
through the public consultation process which is expected to start in November 2019.
45
At the time of writing of the Final NECP, the Draft National Strategy for R&I in Energy and Water 2021-2030 is about to be
published for public consultation, with a view to its finalisation by the beginning of 2020.
60
Figure 22 - Priority areas for R&I activities defined in the Draft National Strategy for Research and Innovation
in Energy and Water (2021-2030), subject to amendments following the upcoming public consultation
process.
As noted in a report by the JRC Policy Support Facility (2019) on its peer-review of the Maltese research
and innovation system, it is difficult to acquire a clear picture of the present R&I landscape in Malta
and this naturally extends to R&I in field of energy and low-carbon technologies. As a result, a
‘baseline’ for R&I in this field has not yet been established, without which concrete targets cannot be
set out. During the first implementation period under the National Strategy for R&I in Energy and
Water, it is planned that a framework for systematic data collection on R&I in energy and water will
be developed and a comprehensive baseline formed. Based on this, quantified 2030 objectives for R&I
in energy and water could be established.
[Where available] National 2050 objectives related to the promotion of clean
energy technologies and [if appropriate] national objectives including long-term
targets for decarbonising energy and carbon-intensive industrial sectors
Malta does not have 2050 objectives related to the promotion of clean energy technologies.
Additionally, there are no long-term targets for the decarbonisation of energy and carbon-intensive
industrial sectors as Malta does not have an energy and carbon-intensive industry.
[If applicable] National objectives with regard to competitiveness
Malta does not have specific national objectives with regard to competitiveness. That being said, the
National Strategy for Research and Innovation in Energy and Water (2021-2030) prioritises support
for research activities which contribute towards the competitiveness of domestic business
enterprises. Such home-grown products may also have the potential for scaling up and replication,
thus multiplying the inherent added-value of such research and enhancing its potential contribution
to increasing industrial competitiveness.
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3 POLICIES AND MEASURES
3.1 DIMENSION DECARBONISATION
3.1.1 GHG emissions and removals
The final National Energy and Climate Plan (NECP) has been drafted whilst the long-term
decarbonisation strategy for Malta is under development. Since the timelines of the two strategic
documents were not running in parallel, additional policies and measures to those outlined in this
section of the NECP could be included in the decarbonisation strategy. These would ultimately feature
in a subsequent revision of the NECP. This is in line with the possibility of updating the NECPs to reflect
new policies and measures which Governments decide to embark on, acknowledging the need to
further reduce climate emissions, and the socio-economic impact of such policies and measures.
Policies and measures to achieve target set under ESR as referred to in 2.1.1 and
policies and measures to comply with LULUCF Regulation
Agriculture
The agriculture sector accounts for a very small share of national GHG emissions (3%). CH
4
is the main
GHG emitted by the agricultural sector from enteric fermentation and manure management. Very
small amounts of N
2
O are also emitted from manure management and fertiliser use.
Various policies and measures are being implemented as agricultural practices, which reduce the GHG
emissions profile of the local agricultural sector. Addressing Malta’s obligations under the EU
legislation, particularly the Nitrates Directive (91/676/EC)
46
, N
2
O emissions from the use of fertiliser is
expected to decrease over time as improved cultivation practices are adopted, principally through the
application of the Code of Good Agricultural Practice
47
and the Nitrates Action Programme.
Furthermore, Malta benefited from the European Agricultural Fund for Rural Development, a financial
instrument under the reform of the Common Agricultural Policy with the aim of strengthening the
EU’s rural development policy and simplifying its implementation. Beyond this, manure management
is set to improve through the enactment of the below measure, which requires both an investment in
new infrastructure and a change in current operations.
Manure Management – Dewatering of Slurries
The Governance of Agricultural & Bio-resources Agency has identified a way forward for the
management of slurries, which cannot be applied to soil, considering the local context and the
prevalent agricultural practices, adhering to circular economy principles retaining value resources in
the process. The policy direction is to dewater the slurries and separately treat the liquid fraction from
the solid parts of the dewatered manure. The main emission reduction, once this measure is
implemented will be through the stabilisation of the organic content in the dry part and attained
through the different treatment technologies applied to the separate fractions produced. Additionally,
46
Directive 91/676/EC on the protection of waters against pollution caused by nitrates from agricultural sources.
47
The Maltese Code of Good Agricultural Practice for the Maltese Islands. Agricultural Services and Rural Development
Division, 2003.
62
this will allow that the current practice of having slurries discharged in the wastewater network to be
discontinued, thus relieving wastewater management plants from the additional organic burden, and
unnecessary maintenance costs. The emission reductions to be brought about by this measure are
modelled in the WPM scenario.
Land Use, Land Use Change and Forestry
As illustrated in an earlier section, Malta is obliged to comply by the commonly referred to as the no-
debit rule in line with the provisions of the Regulation on the inclusion of GHG emissions and removals
from land use, land use change and forestry. Hence, Malta seeks to enhance removals or reduce
emissions in the LULUCF sector. In view of this, afforestation projects have been undertaken in recent
years, which had an effect on the area covered by permanent vegetation, particularly trees. However,
the CO
2
removals as a result of such policy actions, have not been estimated, given that the scale of
projects and the scale of removals would be very limited.
To date, such afforestation projects were focused on areas which also served as recreational spaces
or were designated with conservation statuses, these included Foresta 2000 in Mellieħa, Buskett
woodland, Salina National Park, Ta’ Qali National Park, Xrobb l-Għaġin Park; rehabilitation of Magħtab
closed landfill and various other projects in conjunction with Local Councils, schools and other entities.
The Ministry for Gozo also conducts various ecological restoration projects. As from 2010 over 6,103
trees and over 60,714 shrubs/climbers/perennials were planted through the Simbiotic EU Project in
places such as Chambray Grove, Three Hills Garden, Il-Qortin ta’ Isopu and Nadur.
Another policy measure to incentivise tree planting was the 34U campaign, maintained by the Park,
Afforestation and Countryside Restoration (PARKS) Department within the Ministry for Sustainable
Development, the Environment and Climate Change. The objectives of the 34U are the planting of
indigenous trees, forestation, increase the surface area with permanent vegetation and recreating
tracts of Mediterranean woodland, to encourage biodiversity in Malta.
The policy direction in the years to come is to further augment such afforestation projects to enhance
the sequestration potential to its maximum potential, whilst in parallel also focus on the better
management of Natura 2000 sites to increase areas suitable for such purpose without negatively
impinging on the conservation designations of these sites. All this whilst improving the data
management of these activities to register progress in the calculation and reporting mechanisms
pursuant to this Regulation.
Waste Management
The overall share of GHG emissions from the waste sector is equivalent to <5% of the gross national
emissions, with the main gas emitted being methane, mainly from disposal of solid waste to land.
The national Waste Management Plan for the Maltese Islands, covering the period from 2014-2020
has provided the strategic policy direction in this sector to shift waste management practices up the
waste hierarchy, hence transitioning further from waste disposal in engineered landfills, which
generate GHG emissions, to recovery, recycling, reuse or prevention, which have a lower
environmental and carbon footprint. This is being further bolstered with additional policies as
illustrated below, which have been modelled under the WPM scenario.
63
Waste Management Plan 2021-2030
Policies and measures charted out in the current Waste Management Plan 2014-2020 shall be further
reinforced in the next Waste Management Plan which shall cover the time horizon between 2021-
2030. The ultimate objective remains invariably the efficient use of resources to maximise the inherent
value of waste in accordance with the circular economy principles. In doing so, we strive to generate
less waste by increasing the lifespan of products and/or retaining resources in a closed loop through
further reuse, or recycling, before ultimately recovering energy once products reach end-of-life. It will
also endeavour to attain the ambitious waste targets agreed to recently, hence increasing recycling of
municipal solid waste (MSW) to 60% by 2030 [and 65% by 2035] and reduce landfilling of MSW to 10%
by 2035.
The new plan shall propose specific policies and measures, to build upon the progress registered in
implementing those emanating from the current plan, the impacts of which are partly registered in
the “With Existing Measures” scenario, whilst others are included in the “With Planned Measures”
scenario, depending on the date of implementation.
Waste diversion from landfilling to more sustainable management alternatives shall not have an
immediate net-saving effect of GHG emissions since emissions from landfills at any point in time are
the result of dumping of material in landfills over the previous two or three decades and full closure
of a landfill site does not mean immediate ceasing of emissions. However, the reduction of waste
going to landfills will bring about savings at a faster rate than would be the case if volumes of landfilled
waste remain the same or, even worse, increase.
This shall be notably achieved by consolidating further: (i) the separate collection of organic waste
from households, which was rolled out on a national scale in October 2018. This shall in future be
extended to include commercial establishments through regulatory and fiscal measures, hence
capturing larger amounts of this biodegradable fraction which contributes significantly to GHG
emissions when compared to other waste streams. (ii) the design and commissioning of new end-of-
pipe infrastructural solutions to treat separately collected organic waste from which biogas is
generated as a by-product; and (iii) focusing awareness campaigns on better quality recycling,
together with increasing the enforcement capacity, as the success of waste management strategies
and the subsequent reduction of GHG emissions generated in this sector, hinge upon the behavioural
patterns of society at large, as waste separation at source is key to sustainable management of waste.
Recovering Energy from Waste
To further reduce landfilling of non-otherwise treatable or recyclable fractions, a decision to design,
build and commission a waste-to-energy (WtE) facility was taken to treat the remaining estimated
40% of MSW.
It has been identified that the development of a WtE facility in Malta to complement the existing
waste management infrastructure is a necessity to attain targets, established in various EU directives
and transposed in both the current and upcoming Waste Management Plans for the Maltese Islands,
which will see us through to 2030. Moving grate technology will be resorted to, with a thermal input
between 30 and 43MW. The preferred location has been identified as that adjacent to existing
engineered landfills and other waste management facility within the Maghtab complex.
64
The project will be based on proven technologies for WtE plant, including proven technology for flue
gas cleaning. This means that the plant will be technically similar to many other WtE plants in Europe,
with lower emissions generated in comparison to landfill activities. It is estimated that the WtE plant
will be in operation in 2024.
Regional cooperation in this area
Malta was one of the countries that had acknowledged the need to establish mechanisms to
strengthen regional cooperation to address common climate change challenges through the
promotion of better knowledge, sharing of information and best practices on adaptation and
mitigation. This was done back in 2014 through the signing of the Declaration on Environment and
Climate Change under the Union for the Mediterranean (UfM).
The provisions set under the Effort Sharing Regulation to allow Member States to seek flexible options
in their compliance to the respective national targets is in itself an example of regional cooperation in
order to contribute towards the European Union’s collective target of 40% reduction of its GHG
emissions by 2030 compared to 1990 levels. In view of Malta’s limited mitigation potential, and
resultant high mitigation costs coupled with significant socio-economic considerations such flexible
options were resorted to, through the engagement of bilateral agreements with other Member States,
which achieved emissions reductions in excess of their assigned national target.
Financing measures, including EU support and the use of EU funds in this area at
national level
Implementation of policies and measures which will lead to emissions reductions invariably require a
financing plan, particularly those which involve heavy capital investment. Such financing plans are
currently being drawn up and the tapping into EU funding mechanisms for specific infrastructural
solutions particularly in the waste management sector are being considered such as structural and
investment funds.
3.1.2 Renewable energy
Policies and measures to achieve national contribution to the binding EU-level 2030
and trajectories including sector and technology-specific measures
Malta’s contribution to the EU’s 2030 renewable energy target will require the extension of current
policies and measures and the development of new initiatives tailored to local developments. The
Government seeks to fully exploit all technically and economically viable indigenous renewable energy
sources and support the private sector in similar endeavours, taking into account all relevant
circumstances affecting the deployment of renewable energy. Malta’s potential for RES deployment
is mainly affected by physical and spatial limitations, technological advancement and resource
potential, with the availability and cost of land being the predominant restrictions for further
deployment. In this regard, policies and measures will predominantly focus on solar PV, renewable
65
water heating technologies and biofuels. The shift towards a higher share of renewable heating and
cooling
48
) from heat pump technology is not driven by a specific measure but indirectly benefits from
advantageous household electricity prices.
Share of RES in Electricity
Solar PV
Solar PV continues to be the most viable and robust form of indigenous sources of RES and has
penetrated all sectors successfully. An assessment of Malta’s technical potential for solar PV
conducted by the Energy & Water Agency indicates that, post-2020, there will be potential for further
deployment of solar PV on rooftops and brownfield sites. Therefore, the Government intends to
extend its current policy framework to cover the period from 2021-2030 and adopt new measures
where appropriate, with the goal of increasing the capacity of solar PV.
Support for solar PV is regulated through Subsidiary Legislation 545.27 and 545.31 which allocates
support to new solar PV installations which are connected to the grid in order to help investors in the
residential and non-residential sectors overcome existing cost barriers. Support is currently available
in the form of operating aid, and also in the form of a grant on capital investment for households.
Schemes have been successful, well-received and accepted by potential investors. In light of further
potential for increasing the energy generated by solar PV, the Government intends to extend the
present support framework beyond 2020 to continue encouraging investors. Further details on the
additional financial support required is included under point 3.1.2.iii.
A system of fast track permitting, taking the form of a notification process, was adopted by the
Regulator (REWS) for PVs not larger than 16 Amps per phase to facilitate the installation of such
systems and their connection to the grid. In line with Article 16 of the recast of Directive 2009/28/EC
on the promotion of the use of energy from renewable sources, Malta also intends to adopt a
simplified procedure for repowered systems.
PV systems larger than 16 Amps per phase require an authorisation and a licence to operate from the
REWS prior to construction and connection to the grid. In order to maintain the integrity of the grid,
applicants may be requested to commission a grid connection study to be carried out by the DSO to
ensure that the system is seamlessly integrated into the network. The grid connection study is
performed free of charge for systems below 60A/phase or having a capacity not exceeding 40kW. The
DSO has published a manual detailing the process flow for the processing of applications for grid
connections of distributed RES to facilitate the process in such cases
49
.
Non-government entities play an important role in the development of local renewable energy
capacities. In parallel, the Government is increasing its efforts to ensure that public rooftop spaces are
fully utilised, where possible. For instance, Malta Industrial Parks (MIP), which manages state-owned
industrial premises, is promoting the use of roofs in industrial zones for the installation of PV systems.
A Strategy focusing on the integration of renewable energy was launched by MIP in December 2018.
This includes mapped scenarios for increased penetration of solar PV on tenants’ rooftops. One-to-
48
Renewable energy from cooling from air-to-air heat pumps is not included within Malta’s RES share. As per Directive (EU)
2018/2001, the European Commission is required to establish a methodology for calculating renewable energy for cooling
by December 2021.
49
https://www.enemalta.com.mt/wp-content/uploads/2018/08/Enemalta-process-flow-for-processing-applications-for-
grid-connection-of-distributed-RES.pdf
66
one discussions and surveys with tenants are also being conducted with the aim of identifying
potential barriers and encouraging the installation of RES. Future collaboration between MIP and
relevant Government entities is envisaged with a view to also encourage tenants to make
improvements in energy efficiency and further integrate renewables.
The Government will continue to engage with key stakeholders to encourage their involvement in the
increased deployment of renewable energy technologies, particularly solar PV. This also in view of
development trends which highlight the prioritisation of multi-apartment dwellings and high-rise
buildings, that is, buildings with an increasing height to floor (roof) ratio. Discussions with key
stakeholders may identify ways in which to better incorporate renewable technologies, thus
increasing local renewable capacity and the energy performance of the building.
In order to further encourage the use of renewable sources of energy, the Government launched a
scheme for voluntary organisations where eligible applicants will be offered a completely free PV
system to be used on their premises. Depending on the size of the premise/building, organisations can
choose to either install a 12 module PV system or a 24 module PV system. The scheme will be made
available twice, with the first round of applications received in October 2019 and the second call will
be open in March 2020.
Battery storage
As of 2020, a pilot scheme supporting the integration of battery storage with PV systems will be
launched. Early adopters of solar PVs whose feed-in-tariff has expired will be eligible to receive a 25%
grant (capped at €1,000) against the purchase of a battery system for the storage of renewable energy
and therefore increase the share of self-consumption. A preliminary study was conducted in 2019 to
assess the feasibility of such a measure; the pilot project will feed into this continuing assessment. It
is likely that a large-scale roll-out of battery storage systems for households, PV-integrated or stand-
alone, would require a significantly higher level of support or lower cost of storage than at present. In
this regards Malta shall be seeking EU funds (including Cohesion funds) to bridge the gap.
Waste-to-energy plants
Organic waste is expected to continue being treated through anaerobic digestion plants. Projections
of renewable electricity and/or heat generated by waste-to-energy plants from biodegradable waste
content are based on projections of waste generation and are projected to remain largely constant
throughout the projected period under the WPM scenario, as outlined in Section 2.1.2. In reality, it is
expected that the treatment of the bio-organic fraction of waste can slightly increase in the future to
reflect an increase in population. The Government is carrying out studies to assess the potential of
increasing capacity of treatment of organic waste.
A new waste-to-energy thermal treatment plant is expected to be commissioned in 2024. The share
of the bio-origin content of the waste input is yet to be determined but given that the input stream is
expected to be mainly refuse-derived fuel and rejects, the bio-fraction is expected to be minimal. Thus,
for the scope of the Malta’s RES share in the NECP this new plant is not being considered.
67
Share of RES in Heating and Cooling
The share of RES-H&C is made up of different technologies, which apart from the heat generated by
the waste-to-energy plants referred to above, also include solar water heaters, heat pump water
heaters, air-to-air heat pumps and biomass imports.
Renewable Water Heating Technologies
Given the high solar intensity prevalent in Malta, solar water heaters (SWH) are considered a viable
source of RES. The effectiveness of an ongoing grant scheme supporting the purchase of SWH by
households, has dwindled in recent years, with consumer preference shifting towards PV systems,
especially when technologies compete for limited roof space. In 2018, the Government increased the
maximum support level for SWHs from €400 to €700, capped at 50% of the eligible cost. The support
scheme for Heat Pump Water Heaters (HPWH), which was launched in 2017, was extended and
increased in 2018 to also provide a grant of 50% of eligible costs up to €700.
Post-2020, the existing financial support and incentives being offered will be revised with the aim of
overcoming recently observed barriers. The Government aims to provide support for the installation
of 800 renewable water heating technologies, namely solar water heaters and heat pump water
heaters, each year from 2021-2030. To overcome the declining uptake of domestic SWH, the
Government plans to amend and further simplify the application process such that the beneficiary
would not have to await endorsement of his application for support to acquire a SWH/HPWH before
purchasing the unit, removing potential downtime of a household’s water heating unit. Furthermore,
the amount of financial assistance which can be claimed will be increased from 50% of eligible costs
to a maximum of 80% of eligible costs. The projected Government budget to support the deployment
of 800 units each year from 2021-2030 under this scheme will reach approximately €1,100,000
annually. As the capital cost of SWHs/HPWHs is assumed to remain high compared to conventional
electric water heaters in the short- to medium-term, the support scheme is projected to continue
throughout the ten-year period covered by the NECP.
In parallel to the revamping of these schemes, the Government plans to initiate an educational and
awareness raising campaign to entice households to invest in such technologies by highlighting the
benefits of SWHs/HPWHs. It must be noted, however, that current trends which prioritise the
development of high rises and multi-apartment buildings limit the technical potential of SWHs.
Air-to-Air Heat Pumps
Reversible air-to-air heat pumps are a well-established technology in Malta and considered by many
to be essential for thermal comfort. As a result, the number of air-to-air heat-pumps is projected to
increase without the need for policy intervention. More details on the methodology and assumptions
used in the RES contribution of heat pumps can be found in section 4.2.2.
Share of RES in Transport
Biofuels
Malta already has in place a substitution obligation on importers of petrol and diesel to blend an
increasing share of biofuels in their mix
50
with the aim of meeting the target of a 10% share of RES in
50
Subsidiary Legislation 545.17
68
transport in 2020 as per Article 3(4) of Directive 2009/28/EC. In line with Article 25 of Directive (EU)
2018/2001, the Government intends to extend the current substitution obligation framework until
2030, by gradually increasing the obligation of biofuel blending on importers of petrol and diesel from
10% in 2020 to 14% in 2030, by energy content, as a share of renewable energy supplied for final
consumption in the road transport sector. The obligation will additionally require importers of petrol
and diesel to increase the share of advanced biofuels from 0.1% in 2020 to 3.5% in 2030, with the
share in 2022 and 2025 being 0.2% and 1% respectively. For the scope of meeting the requirements
of Article 25 of Directive (EU) 2018/2001, Malta intends to consider biofuels from feedstocks listed in
Annex IX of the Directive; these may be considered as twice their energy content for calculating the
share of biofuels for transport.
Local importers and wholesalers of petrol and diesel will likely meet their post-2020 substitution
obligation by blending EN 590 diesel with Fatty Acid Methyl Esters (FAME) biodiesel (EN 14214) and
hydrotreated vegetable oil (HVO) (EN 15940), as is the current practice. In recent years, the latter has
been prioritised by local fuel suppliers as it offers several advantages over FAME biodiesel. HVO
parameters are within EN 590 specifications (except for lower density), it has a higher energy content
and good solvency when blending, without any temperature issues. It can be typically blended with
EN 590 up to 30% by volume, whereas FAME biodiesel can be blended with EN 590 diesel up to a
maximum of 7% by volume
51
.
Bioethanol is currently not available for consumption in Malta. This is due to the Maltese hot climate
which creates technical difficulties for the blending of bioethanol with petrol. The addition of
bioethanol to petrol in low percentages increases the vapour pressure of the fuel blend and therefore
increases the possibility of emissions of benzene and volatile organic compounds, particularly in high
ambient temperatures. Therefore, unless petrol with a sufficiently low reid vapour pressure (RVP) is
readily available in relatively small volumes and competitive prices, the warm climate in Malta would
drive the vapour pressure of bioethanol-petrol blends above the limit determined by EN 228.
Malta has introduced an obligation on fuel importers to blend 0.1% share of advanced biofuel in their
mix in 2020. This is in spite of the fact that advanced biofuels tend to be available in relatively small
volumes globally
52
,
53
and their price projections demonstrate a sustained substantially higher cost over
conventional biofuels and mineral fuels
54
,
55
.
Both conventional and advanced biofuels are more expensive than mineral diesel and petrol per unit
of energy. Projections from DG Agriculture and Rural Development in the EU Agricultural Outlook
2017-2030
56
indicate that the prices of biofuels will remain largely constant in the medium-term. Given
that reported prices are similar to local landed costs, it has been assumed for projection purposes that
the current price difference between mineral diesel and biodiesel imported locally will remain. This
also applies to advanced biofuels, which the same report notes are unlikely to experience significant
51
Neste Corporation (2016). Neste Renewable Diesel Handbook. Available at:
https://www.neste.com/sites/default/files/attachments/neste_renewable_diesel_handbook.pdf
52
ECOFYS (2017). Crude Tall Oil Low ILUC Risk Assessment: Comparing Global Supply and Demand.
53
Greenea (2018). Waste-based feedstock and biodiesel market in the EU: How new regulations may influence the market. In: PLATTS
Geneva: Biofuel Conference. [online] Geneva.
54
DG Mobility and Transport, Sub Group on Advanced Biofuels (2018). Building up the Future: Cost of Biofuel.
55
Ethanol Europe (2018). Biofuels and RED II: At What Cost? Available at: https://www.euractiv.com/wp-
content/uploads/sites/2/2018/03/Advanced-biofuel-cost-projections-Ethanol-Europe-1.pdf
56
DG Agriculture and Rural Development & the Joint Research Centre. EU Agricultural Outlook: For the Agricultural Markets and Income
2017-2030.
69
changes in costs in the short- to medium-term. Furthermore, it must be noted that given the relatively
small market, Malta cannot take advantage of economies of scale in procurement and shipping,
therefore the CIF costs tend to be higher than for larger markets.
The energy regulator, REWS, will continue to ensure that all biofuels placed on the market fulfil the
necessary sustainable criteria.
Electric vehicles
When projecting the local stock of electric vehicles and plug-in-hybrid electric vehicles under the WPM
scenario, the impact of the relevant EU fleet CO
2
Regulations for the period post-2020 was taken into
account. Although these standards will apply to vehicle manufacturers, the fleet of brand-new vehicles
purchased in Malta tends to reflect that available on the EU market and therefore an assumption was
made that the CO
2
fleet averages would also apply to Malta. It is assumed that vehicle manufacturers
will increase the proportion of electric vehicles in their fleet to meet these standards. As a result of
these Regulations which are supplemented by a national scrappage scheme, the stock of electric and
plug-in-hybrid electric vehicles is expected to increase from just above 1,000 in 2020 to almost 26,000
by 2030 under the WPM scenario. Policies and measures addressing the electrification of transport
are outlined in Section 3.1.3.iii focusing on low-emission mobility.
Specific measures for regional cooperation
Development of indigenous renewable capacities will continue to be prioritised. However, given
Malta’s limited technical capacity for mature renewable technologies, as well as a sustained increase
in demand, Malta envisages the need to acquire renewable energy credits to meet the 2020 RES share
target of 10%, maintain this minimum target in 2021 and also meet its first reference point on the
indicative trajectory in 2022. This plan foresees the option for Malta to avail itself of cooperation
mechanisms to meet its renewable energy contributions as long as any higher commitments are
subject to equitable sharing of costs and benefits.
In this context, Malta is willing to cooperate with Italy and explore the possibility of entering into joint
RES projects as long as these yield benefits for both Member States. The possibility of tapping into EU
funds such as the Innovation fund and CEF will also be considered, as well as coordinating with other
Mediterranean countries on such projects.
Specific measures on financial support for the promotion of the production and use
of energy from RES in electricity, H&C and transport
In line with Article 4 of Directive (EU) 2018/2001, the Government plans to extend existing support
schemes, in the form of EU/national capital grant incentives and operating aid for the promotion of
electricity from RES,
57
beyond 2020 in order to increase penetration of RES, with a focus on solar PV
and renewable water heating technologies.
With regards to solar PV, while costs are decreasing, national projections denote that there will remain
a need to address financial barriers in the residential and non-residential sector. The LCOE of
residential PV systems is likely to remain higher than the proxy for the market price of electricity until
57
Any schemes post-2020 will be subject to the applicable state aid rules
70
2030, indicating that few consumers would invest without financial support. This is the same for the
commercial systems for which, based on current projections, the LCOE will not reach grid parity until
the end of the projected period; this is largely on account of the associated high costs for land/rooftop
rent and/or grid connections. Furthermore, it is likely that the financial and technical barriers
experienced by those consumers who have not yet installed a PV system are likely to be higher than
those who have already invested in this technology.
Thus, the Government intends to maintain financial support schemes to encourage the deployment
of renewable energy. The grant and operating aid for the promotion of electricity from RES will
continue to be revised on a regular basis to ensure a reasonable return on investment and avoid
overcompensation as system costs and electricity prices evolve, while taking into account all relevant
costs.
It is being estimated that, on average, an additional estimated €8.4 million annually will be required
to finance grants and feed-in tariffs supporting the installation of new PV systems and SWHs/HPWHs
post-2020. An additional €12.2 million annually, on average, will be required throughout the period
for continued support of existing PV systems. These estimates are sensitive to the evolution of
electricity wholesale prices. For instance, should the proxy for the market price of electricity diverge
from projections, the budgetary impact of support schemes would change depending on whether the
Government would be required to bridge a larger or smaller cost gap.
[Where applicable] Assessment of the support for electricity from renewable
sources pursuant to Article 6 (1b) of RED
Malta currently provides operational aid and support on capital investment to PV systems; these are
in line with existing state aid rules. A re-assessment of the support level is performed at least once a
year to ensure that changing costs are fully reflected.
Following the transposition of Directive (EU) 2018/2001, Malta will carry out an assessment of the
effectiveness of support schemes for the promotion of electricity from renewable sources every five
years in line with Article 6 (1b). This will be included in relevant updates of the national integrated
energy and climate plan and the periodic progress reports.
Specific measures to introduce one or more contact points, streamline
administrative procedures, provide information and training and facilitate the
uptake of power purchase agreements
On a national level, discussions are ongoing on how best to implement the requirements of Article 16
and 17 of Directive (EU) 2018/2001. Following its transposition, Malta will implement the necessary
regulatory and administrative changes required by the Directive.
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Summary of policies and measures under the enabling framework pursuant to
Article 21(4) and 22(5) of the RED to promote and facilitate the development of
renewable self-consumption and renewable energy communities
Existing schemes supporting the installation of PV systems cater for the option of self-consumption of
renewable electricity in both the residential and non-residential sector. Under existing legislation, the
applicant may opt to sell all electricity generated by the PV system to the DSO (full export) or export
only the surplus electricity (partial export). Furthermore, in the case where the installation operator
does not apply for support, Regulation 4A of SL 545.27 ensures that solar PVs may be installed
primarily for self-consumption and that any surplus electricity supplied to the DSO through the grid
will be bought at the proxy for the market price. The option for self-consumption is not applicable for
PV installations owned by third parties, with full export to the grid being the only option.
In 2017, systems on partial export generated 23% of total electricity from solar PV (Figure 23).
Additionally, the proportion of electricity generated by these systems that was effectively consumed
on-site in 2017 was 59%.
Figure 23 - Electricity production in 2017 from PV systems on full vs partial export by sector (residential (RSD)
vs. non-residential (Non-RSD)), %
Since the introduction of support schemes in the form of feed-in tariffs, Malta’s regulatory framework
supported self-consumption and ensured that there would be no legal or technical barriers to
renewable self-consumption. Systems which prioritise self-consumption face no additional charges
when selling their excess production of renewable electricity to the grid. Self-consumption is
promoted as a way in which consumers can offset their consumption of electricity from the grid (in
real time) and thus, reduce their electricity bills, particularly in cases where such offsetting places the
consumer in a lower electricity tariff band.
The Government will continue to promote renewable self-consumption of electricity from solar PV
systems and ensure that no discriminatory or disproportionate procedures and charges apply. In this
regard, and in line with future requirements under Article 21(4) of Directive (EU) 2018/2001, Malta
47%
7%
30%
16%
2017 PV Generation by Sector and Export Scheme
RSD full export RSD partial export Non-RSD full export Non-RSD partial export
72
will be conducting an assessment to explore any potential unidentified barriers to renewable self-
consumption.
It is expected that under the ‘With Planned Measures’ scenario, Malta will reach a Solar PV capacity
of 266 MW by 2030, thus fulfilling its currently estimated technical potential. As explained in sections
above, the Government intends to reach this capacity by extending its current framework of RES
support schemes post-2020 for both residential and non-residential systems, including in the form of
feed-in-tariffs (FITs)/ feed-in premiums. As the support period for several PV systems come to an end,
it is expected that most of these will switch to a “self-consumption” billing option. Thus, consumers
opting for this option are expected to increase, reaching circa 50% of installed PV systems by 2030
(Figure 24). This shift is also expected to drive demand management (to minimize electricity exported
to the grid), which may be beneficial to the grid operator if well managed to reduce demand peaks.
Figure 24 - Production from PV systems on full or partial export under WPM scenario, 2018-2030, %
In view of the structure of the Maltese electricity system with one electricity supply market (Enemalta
is designated as an exclusive supplier in Malta), it is not foreseen that renewable energy communities
will develop in the short term. The specific nature of Malta’s electricity system is fully recognized in
Directive (EU) 2019/944 on common rules for the internal market for electricity in which Malta is
granted derogations on third-party access, choice of supplier, and provisions related to unbundling.
Assessment of the necessity to build new infrastructure for district heating and
cooling produced from RES
Malta does not have any district heating and cooling networks. A comprehensive assessment of
Malta’s heating and cooling demand was commissioned in 2015, titled ‘An Energy Roadmap- Towards
Achieving Decarbonization for the Maltese Islands – Analysis for a Cost-Effective and Efficient Heating
and Cooling’
58
, and carried out in accordance with the provisions of Article 14(1) of the Energy
Efficiency Directive 2012/27/EU, which sought to identify the potential of technically and economically
58
Figure estimated based on 2013 data. Source: An Energy Roadmap- Towards Achieving Decarbonization for the Maltese Islands – Analysis
for a Cost-Effective and Efficient Heating and Cooling
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Production from PV systems on full or partial export
(WPM), %
Full Export Partial Export
73
feasible applications of high efficiency cogeneration and efficient district heating and cooling.
Information regarding the outcome of the assessment is elaborated in Section 4.3.ii on the current
potential for the application of high-efficiency cogeneration and efficient district heating and cooling.
[If applicable] Specific measures on the promotion of the use of energy from
biomass, especially for new biomass mobilisation
As explained in previous sections, biomass is imported to Malta in rather small volumes and used for
heating purposes by the residential and to a small extent the industrial and services sectors. It is
foreseen that biomass imports in the future will remain stable and no specific measures are foreseen
to promote the use of energy from biomass.
3.1.3 Other elements of the dimension
[If applicable] National policies and measures affecting the EU ETS sector and
assessment of the complementarity and impacts on the EU ETS
The competent authority responsible for the overall implementation and administration of the EU ETS
in Malta is the Malta Resources Authority. In Malta, EU ETS covers the power generation and the
aviation sectors. Legal Notice 434/2013 transposes Directive 2003/87/EC into local legislation in
relation to stationary installations, while Legal Notice 403/2012 transposes the Directive insofar as it
relates to aviation activities.
Operators of an installation performing an activity falling under Annex I of the Directive are required
to apply for a GHG emissions permit. The allocation of allowances to stationary installations in the
power generation sector is carried out in accordance with harmonized EU-wide rules, which involves
both auctioning and free allocation on the basis of agreed benchmarks. Electricity generation plants
in Malta falling within the scope of the EU ETS Directive are not eligible to any free allowances and are
required to acquire allowances through auctioning and/or purchases on the emissions trading market.
As regards the allocation for Phase IV (2021-2025), electricity generation plants were not eligible for
any free allowances. Operators of installations in Malta are also obliged by law to submit to the
competent authority monitoring plans describing how emissions will be monitored and reported.
Directive 2003/87/EC as amended by Directive 2008/101/EC included aviation activities in the scheme
for GHG emission allowance trading. The Directive provides for an EU Member State to be responsible
for administering each aircraft operator in the EU ETS. Allocation of allowances to aircraft operators
is partly free on the basis of benchmarking and partly through auctioning. Three aircraft operators
administered by Malta were granted free allocations for the years 2017 – 2023. Aircraft operators are
also obliged to have an approved monitoring plan for annual emissions as well as for tonne-kilometer
data.
Policies and measures to achieve other national targets, if applicable
No other policies and measures are foreseen at the time of submission of the final NECP.
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Policies and measures to achieve low-emission mobility (including electrification of
transport)
In 2016, Malta’s Government adopted a Transport Master Plan with a horizon up to 2025. A number
of measures indicated in the Master Plan have been implemented since 2017 and will continue to be
realised throughout 2018, 2019 and 2020. Other measures are expected to be implemented and
completed in the post-2020 period leading up to 2025.
Free school transport for all primary and secondary school students and free use of public transport
for youths and students between 16-20 years old was introduced in October 2018. Although the effect
of these measures on emissions has yet to be assessed, it is estimated that this measure has led to a
reduction of circa 6,300 car trips. Free public transport fares for youths and students is expected to be
extended to students of ages between 14 – 20 as well as full-time students of all ages by the end of
2020.
When compared to the WEM scenario, emissions under the WPM scenario are expected to decrease
as a result of a number of infrastructure projects on the TEN-T network that will alleviate congestion
and lead to an overall increase in the average speed of vehicles (and thus, lower fuel consumption
compared to the WEM), such as:
• TEN-T Kappara (completed in 2017): expected CO
2
emission reduction of 1,700 tonnes per
year;
• TEN-T Marsa-Hamrun By Pass Phase I (completed in 2018): expected CO
2
emission reduction
of 3,000 tonnes per year;
• TEN-T Marsa (to be completed in 2020): expected CO
2
emission reduction of 5,243 tonnes per
year from 2020.
Ongoing implementation of the 2025 Master Plan relates to a number of measures falling under the
Sustainable Multimodal Intelligent Transport Hubs Project known as SMITHs Project. The concept
revolves around the identification and the setting up of local transport hubs to provide multi-modal
transport services for transport users in lieu of the use of the private personal car. In this respect, the
work so far has been preparatory in nature in terms of project design, engagement of third party
consultancy services and preparation/publication of procurement processes.
The main objective of the SMITHs is to provide different inter-modal services in conjunction with
Public Transport to essentially complete the last mile of one’s journey. Thus, in effect, apart from
Public Bus Transport stops in a given local transport hub, one will also find electric car sharing services,
pedelec sharing, bicycle sharing, electric motor cycle sharing and scooter sharing. In some localities,
especially in maritime towns and villages, maritime public transport is being provided and the service
will be extended to other localities due to increased popularity.
In 2018, the Government has rolled out a car-sharing scheme consisting of 150 cars at 450 different
locations spread around Malta, which allows citizens to book an electric vehicle (EV) through an online
app.
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The vehicles used are all electric.
In addition, the Government will also carry out a pilot project in Gozo to demonstrate and test
Transport on Demand using electric buses and electric mini cabs which will be operated by the
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https://www.goto.com.mt
75
Ministry of Gozo. This project, which is expected to be implemented by 2020, will introduce 8 electric
buses in Gozo.
Through the investment of bicycle and pedelec sharing operating companies, Malta registered a
steady increase in the use of these modes for commuting purposes, and this encouraged the
Government to invest more in related infrastructure, including Safe Cycling Routes. Two pilot projects
are being prepared for implementation which involve 26km of Safe Cycle Routes under the concept
of sharing the road. The idea behind the concept is to make these road sections safer for cyclists
without the need to implement dedicated cycle lanes where road width does not permit this. Malta’s
objective is to have a national safe cycling route network which will be intersecting local transport
hubs. It is expected that in 2020 a National Bicycle Strategy, which shall include the provision of
additional cycle lanes and increase connectivity to these routes, will be developed.
Low Emission Zone Study
Transport Malta has started a project to study the feasibility of the introduction of Low Emission Zones
(LEZ). Transport Malta is working with the Controlled Vehicular Access (CVA) operator who manages
the Valletta Congestion Charge to use its existing infrastructure and additional CCTV to carry out a
study in real conditions of an LEZ. Transport Malta has purchased additional CCTVs and at the moment
are allocating different charges to all vehicles of the fleet based on the emission levels of each type of
vehicle and according to the Euro levels of the respective engines. EVs will not be assigned any charges
and Transport Malta will run various scenarios with the collected data including pricing scenarios and
ghost-billing to each vehicle.
National Traffic Control Centre
A new National Traffic Control Centre (NTCC) to manage traffic and enforce bus corridors is being set
up. Infrastructural work is currently underway. The new NTCC will be completed in the course of 2020.
This will also include an Intelligent Transport Systems (ITS) Platform to enable all of ITS sub-systems
to communicate. Transport Malta is currently in the tendering process of this measure.
An example of innovation in the area of transport, specifically the utilisation of technology, involves a
Real Time Journey Planner including the back-end of the system (that has been launched). The Real
Time Journey planner will be operated from the National Traffic Control Centre. The app will give real
time information on all modes of transport and scheduling services for all modes of transport including
bus public transport, inter-harbour maritime services, inter-island ferry services, Malta-Sicily maritime
transport, and air transport in conjunction with the Malta International Airport.
In order to further enhance ferry transportation, Malta is planning an upgrade of Existing Landing
Ferry Sites and introducing three new facilities and Maritime Routes. Following a number of studies
carried out in 2017 and a number of other studies undertaken in 2018, procurement is currently
underway for the upgrading of the quays. Structural works on two of the sites is expected to
commence. Tenders for the superstructures to serve as the passenger waiting facilities are being
prepared. The facilities will be equipped with the provision of real time information between various
modes of transport. The improvement of Ferry Landing Places is expected to impact Bormla, Sliema
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as well as Spinola, Ta ‘Xbiex and Bugibba in the period post-2020. Additionally, a fast-ferry from Gozo
to Valletta is being planned.
Electrification of Transport
With reference to the electrification of transport systems, procurement is currently underway for the
installation of 118 medium-fast EV chargers and 22 Rapid EV chargers. This EV charging infrastructure
will be placed and installed in the SMITHS to promote the electrification of transport. This project is
also being carried out in part for the fulfilment of the Directive for the Deployment of Alternative Fuel
Infrastructure for Transport (Directive 2014/94) and the respective national targets. All the measures
indicated above fall under the SMITHs Project which is being funded through ERDF and National Funds.
A number of measures have been taken to promote and implement the electrification of transport in
Malta. The Government has launched a number of grant packages and these have been improved year
on year. In 2018, the grant packages include a grant of €7,000 in connection with a scrappage scheme
of an older ICE vehicle and a grant of €6,000 without a scrapping scheme. In addition, as from 2018,
full EVs (including plug-in hybrids and electric range extender electric vehicles) are exempt from
registration fees which will benefit EV owners with an additional financial assistance of €1,500 to
€3,000. In addition, Malta has exempted EVs from registration tax and the annual road license for 5
years from the date of registration. Hybrid vehicles and motorcycles with a capacity of less than 250cc
also benefit from incentives such as a lower registration tax and annual circulation tax.
The registration tax and annual circulation tax in Malta is founded on a “polluter pays principle” based
on the length of the vehicle, CO
2
and particulate matter which favours cleaner, smaller, newer and
low emission vehicles. Private companies can also benefit from up to €200,000 in cash grants to
change their car fleets in line with state aid rules.
The year 2018 saw the highest number of EVs registered in Malta. On the national automotive market
there is an availability of 90% of all EV models available on the European automotive market.
Malta’s National Electromobility Action Plan (MNEAP) is currently undergoing review and being
updated to reflect the National Transport Strategy and National Operational Transport Master Plan,
including a new action plan up to 2025 and a strategy leading to 2050. The measures to be included
in the revised action plan will be tested and simulated through an Interreg Med funded Project.
Earlier this year, the Ministry for Transport, Infrastructure and Capital Projects commissioned a study
in order to evaluate the feasibility of CNG and LNG in road transport, in line with Directive 2014/94
on the Deployment of Alternative Fuels, and the results are now being analysed. Meanwhile,
Transport Malta (TM) is working on a pilot project to demonstrate hydrogen propulsion. TM has
invited current fuel station owners through an advert in newspapers to gauge the interest of the
private sector to join TM in such a pilot project. Five fuel station companies, mostly on the TEN-T and
arterial roads, have shown interest in participating in such a pilot.
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Sustainable Urban Mobility Plans (SUMP)
60
TM is currently in the process of compiling an extension to the first ever SUMP in Malta. This will be
carried out for Valletta and the Valletta Region which hosts the main commercial districts, popular
tourist destinations, the international airport and cruise port terminal. The SUMP is expected to
explore innovative solutions in order to improve mobility patterns, meet demands in the transport
sector and contribute to making transport more sustainable. The SUMP process includes the
engagement of consultants and consultation processes with stakeholders. Transport Malta is in the
process of engaging with the respective local councils. The project is being part financed under the
Civitas Destinations Project and is expected to be concluded by 2020.
[If applicable] National policies, timelines and measures planned to phase out
energy subsidies, in particular for fossil fuels
Bearing in mind Malta’s specificities, there are no plans to phase out any energy subsidies at this
particular juncture, while remaining committed to, inter alia, encourage the adoption of technologies
that can help reduce greenhouse gas emissions.
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http://civitas.eu/projects/destinations/measures/sump-valletta
78
3.2 DIMENSION ENERGY EFFICIENCY
Policies, measures and programmes to achieve the indicative national EE contribution for 2030
as well as other objectives presented in section 2.2:
Energy efficiency obligation schemes and alternative policy measures under Article
7a and 7b of EED
Figure 25 shows the final energy consumption per capita across all EU Member States. Malta has the
second lowest final energy consumption per capita which is slightly more than half of the EU average.
Figure 25 - Final energy consumption per capita in 2017, GJ/capita (Source: Eurostat)
Figure 26 shows the sectoral consumption for the European Union for the year 2016 whilst Figure 27
shows the sectoral consumption for Malta for the same year. It can be highlighted that Malta’s share
of final energy consumption in transport is much higher than the EU average. This is mainly because:
• Malta is an island at the periphery of the European Union, implying a larger than average share
of aviation as a mode of transport;
• Malta has no mass-transport infrastructure as studies have so far indicated that Malta does
not have the necessary critical mass to justify the operating costs; and
• Temperate climate, implying a lower heating demand i.e. heating percentage share of the final
energy demand.
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
Romania
Malta
Bulgaria
Greece
Portugal
Croatia
Spain
Poland
Hungary
Italy
Lithuania
United Kingdom
Slovakia
Latvia
Cyprus
Estonia
European Union
France
Slovenia
Czechia
Ireland
Denmark
Germany
Netherlands
Belgium
Austria
Sweden
Finland
Luxembourg
79
Figure 26 - Final energy consumption by sector in the EU in 2016, % (Source: Eurostat)
Figure 27 - Final energy consumption in Malta by sector in 2016, %
Transport
The transport sector is responsible for over half of the final energy consumption. Malta will be
addressing energy efficiency in transport, through the measures identified in the 2025 Transport Malta
Master plan as outlined in Section 3.1.3 iii on policies and measures to achieve low-emission mobility
(including electrification of transport). Furthermore, the transport scrappage scheme, also included
in the aforementioned section, will incentivise owners to scrap old less efficient vehicles and replace
them by new vehicles thus reducing the number of old motor vehicles on the road.
Industry and Services
Malta’s share of final energy consumption in industry is also significantly lower than the EU average
as Malta is not an industry-based economy and there are no energy intensive industries. Furthermore,
the sector is already pulling its weight with regards to energy efficiency, as confirmed by an 8% growth
in economic activity and a corresponding increase in energy consumption of 1.5% during 2017.
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In contrast, Malta’s share of final energy consumption by the services sector in 2017 was higher than
the EU average reflecting the local service-based economy. Nonetheless, whilst the gross value added
(GVA) of the services sectors increased by 9% its energy consumption increased by 4%.
Malta plans to address energy savings in these sectors by setting up a scheme in order to promote
and address energy efficiency investment. Enterprises will be encouraged to undertake energy
efficiency projects which shall be supported by investment aid. This measure is estimated to result in
an investment in energy efficiency of circa €62.5 million over the period 2021-2030. In this regard it
is being assumed that the present state aid framework is extended until 2030.
Households
As per Figure 28, Malta’s average consumption per dwelling is well below the EU average and is the
lowest among all EU Member States.
Figure 28 - Average consumption per dwelling (adjusted to EU climate) in 2016, toe/dw (Source: Odyssee-
Mure)
Furthermore, as shown in Table 6, Malta has a considerably different consumption profile. While the
European Union as a whole has the highest share of energy attributed to space heating, Malta has the
highest share of energy used for lighting and appliances. In Malta, there is no gas distribution network
or district heating/cooling networks. Construction of such networks has so far been deemed not
feasible, mainly due to the limited demand for heating and widespread use of distributed
alternative efficient cooling heat-pump technology. Furthermore, the installation of air conditioners
employing heat pump technology does not require incentives and policy intervention for its
0
0.5
1
1.5
2
2.5
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
UK
European Union
toe/dw
Consumption per dwelling
81
deployment. This is confirmed by the significant growth in the number of installations which is
projected to continue to grow under both the ‘With Existing Measures’ and ‘With Planned Measures’
scenarios of the NECP. Such a market driven development is a major contributor towards energy
efficiency in households but cannot be accounted for under Article 7 as it is not a result of any
direct government policy. In reflection of the temperate climate and the general preference to use
natural ventilation when possible, households have typically low energy bills and so find it difficult to
justify investment in the renovation of their building.
It is in this context that the most effective approach to reduce the sale of energy to end users, move
away from the consumption of fossil fuels, benefit from utilization of ambient energy
and drive savings, is to promote the installation of small-scale renewable energy technologies for own
consumption. Malta will therefore launch new schemes post-2020 in order to incentivise the
installation of solar water heaters, air to water heat pumps and photovoltaic panels for own
consumption. As these schemes are cross-sectoral and contribute to Malta’s renewable energy target,
they are described in more detail under Section 3.1.2 of the Plan.
Table 6 - Share of final energy consumption in the residential sector by type of end-use in 2016, % (Source:
Eurostat)
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Government Leading by Example
The Government of Malta is committed to lead by example and will be implementing a number
of projects/measures in order to promote energy efficiency and achieve energy savings. Malta will
continue its efforts in order to roll-out energy efficient street lighting. Malta is expected to replace
over 33,000 lamps from the present lighting luminaries to LEDs.
Furthermore, post-2020, electricity tariffs shall continue to incorporate a built-in mechanisms
which promotes end-use savings. This includes a “rising block tariff” and an eco-reduction mechanism.
These mechanisms incentivize end-users to reduce consumption below an established threshold and
deter high consumption by applying higher tariffs as consumption increases.
Energy and Water Nexus
The biggest challenge in the Maltese water sector is the scarcity of natural freshwater. Malta has the
lowest freshwater availability per capita in the EU. Even if these natural water resources are used
sustainably, they are still not enough to meet national demand and therefore the production of
alternative (non- conventional) water resources is a necessity. In view of this, Malta has developed a
water management framework based on the conjunctive use of water demand management and
water supply augmentation measures.
At present, the provision of water services accounts for 6% of the total national electricity demand.
This is mainly used for water production, particularly due to the use of sea-water desalination plants
which account for around 60% of the total production of potable water. Malta is well aware of the
interdependency between energy and water and that the provision of the two has to be considered
in a holistic and economic manner if sustainability is to be achieved. In this regard, the Water Services
Corporation, the Government owned water utility, will be carrying out projects in the primary water
network and the wastewater treatment plant to improve system efficiency and reduce the electricity
consumed per unit of water delivered. These measures are estimated to result in an investment of
circa €38.6 million.
Water Demand Management (water efficiency) also leads to energy savings as it results in lower
volumes of water moving in the urban water cycle. At national/regional level, distribution network
leakage identification and control is the most effective measure to optimise the effective use of water.
Leakage management in Malta resulted in a reduction of around 40% of municipal water demand over
a 15-year period.
Demand management measures are also important at the level of the user. Domestic water
consumption in Malta stands at around 17 million m
3
pa which amounts to an average daily
consumption per person of around 115 litres. Well aware of this, the Energy and Water Agency has
embarked on a nation-wide campaign to help raise awareness on the optimised and efficient use of
water resources to facilitate a cultural shift in people’s behaviour towards water conservation. Various
communication methods are being used in order to reach the wide population including developing a
campaign Branding Identity; advertising on conventional media; education through non-conventional
media sources; organization of large events amongst others.
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The Agency also carries out household visits (particularly in vulnerable households) where technical
personnel are tasked with helping residents understanding energy and water usage and provide
tailored energy conservation tips. Such households are also provided with water saving kits which
provide all the necessary information on water conservation (also as part of the aforementioned
campaign).
Long-term renovation strategy to support the renovation of national stock of
residential and non-residential buildings, both public and private
Malta is aware of its commitments to develop a long-term renovation strategy to support the
renovation of the national stock of residential and non-residential buildings, both public and private,
in accordance with Article 2a of Directive 2010/31/EU. In line with these obligations, Member States
are expected to submit the first long-term renovation strategy by 10 March 2020.
Description of policies and measures to promote energy services in the public
sector and measures to remove regulatory and non-regulatory barriers that impede
the uptake of energy performance contracting and other energy efficiency service
models
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There are a number of private undertakings operating in Malta that provide an energy service, but the
concept of financing investments through the energy savings (ESCO) model has not yet taken off. This
is due to the generally low energy intensity of the various economic sectors, long payback periods
associated with most measures, and the availability of alternative sources of finance.
The Government has explored the possibility of adopting energy service contracts in the public sector.
A study was carried out on three typical public buildings, whereby it resulted that in view of their low
energy consumption, the return on investment for energy savings measures was quite low. Except for
investments in renewable energy projects, the payback time exceeded the expected lifetime of the
measure itself or the building. The private sector is also facing a similar situation and, so far, no
concrete results have materialised.
A public consultation on Energy Performance Contracting was also held in February 2017.
Respondents highlighted that take up is restricted due to limited savings. Furthermore, potential ESCO
providers find it difficult to accumulate a sufficiently large portfolio of interventions to build a suitable
business case. Malta is currently analysing whether the development of a financial Special Purpose
Vehicle, which would provide off-balance sheet financing for ESCOs and their customers, offer
attractive repayment options through low interest rates and have a higher risk tolerance than
traditional financing instruments, would achieve the required effectiveness and leverage in the local
scenario.
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In accordance with Article 18 of Directive 2012/27/EU
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Other planned PAMs and programmes to achieve the indicative national energy
efficiency contributions for 2030
The energy consumption of the Maltese Islands has been under the spotlight of the administration in
the past years and will continue to be in order to ensure long term decoupling between energy
consumption and economic growth. Section 3.2.iii gives an account of the actions envisaged to fulfil
the obligations emanating from Article 7 of the Energy Efficiency Directive, which will be at the core
of Malta’s plan to achieve its goals. These measures address various sectors to strive towards a
decarbonised economy. There are also a number of additional measures which are expected to
contribute but are not listed under Article 7 measures due to them being difficult to quantify. These
mainly target efficient transportation and include free public transport for youths and the elderly (over
75 years), support for bicycles and pedelec bicycles whereby a grant is given on the purchase of either
of the two equivalent to a full refund of the VAT and additional sea transport routes around the island
to increase connectivity.
Electricity Generation
By 2017, Malta had closed its inefficient power generation units and was exclusively using natural gas
for electricity generation
62
which is delivered as LNG. However, plans are in progress for the
construction of a gas pipeline to link Malta to the European gas grid in Sicily. At present, Malta is
conducting detailed studies which include a marine route survey, an environmental impact
assessment, the front-end engineering design and the financial engineering all of which are co-funded
under the CEF. The plan is to obtain the permits and apply for EU co-funding for works by 2020 and,
following a publication of an Engineering Procurement and Construction tender, proceed with
construction for a target commissioning date of 2025. The gas pipeline project is described in more
detail under the Energy Security dimension of the Plan. Power generation will retain today’s best-in-
class efficiency standards.
Electricity Distribution
Enemalta plc is the only electricity Distribution System Operator in Malta. In the recent years,
Enemalta has embarked on an extensive program to ensure an efficient distribution system that
minimises losses, operating the system in an efficient manner in accordance with European and local
legislation. It must be noted that Enemalta has installed 99.6% of its consumers with smart meters
and has adopted a tariff system that favours prudent energy use and energy efficiency, with the aim
of fostering such behaviour in its final consumers. Enemalta plc is an enterprise with a majority
shareholding by the Government and is committed to further develop and optimize its distribution
network post 2020.
Industry and Services Sectors
The industry and services sectors were responsible for circa 29% of the total final energy consumption
in 2017. A number of actions and schemes were designed to facilitate interventions in energy
efficiency initiatives and promote the introduction of Energy Management Systems, e.g. ISO 50001.
In the period 2014 to 2020, the Energy and Water Agency operated a ‘voluntary scheme’ whereby
enterprises would report verified energy savings. This scheme is expected to continue post-2020 and
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A diesel-powered plant is kept on standby to achieve the desired level of security of supply.
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shall be a prerequisite for access to support schemes mentioned in section 3.2.iii. The Government is
aware of the importance of standard energy management systems and shall enforce that, over a
definite period, non-SMEs with an annual consumption exceeding 800 toe would need to implement
an ISO certified Management system (EN ISO 50001, or EN ISO 14001 if an energy audit is included).
In line with State Aid Regulations and in consultation with stakeholder organisations, a scheme will be
available to support enterprises in acquiring ISO or EN certification. A budget of €100,000 per year
shall be allocated for five years to support this scheme. It is further envisaged that local legislation will
require that non-SMEs also appoint an Energy Manager.
To further support the industry and services sector, the Government will develop information
dissemination programmes that focus on providing better information to decision-makers and
engineers in the sector. This campaign will create awareness on the need to invest in energy efficiency,
the savings potential, the financial and/or operational benefits of energy efficiency measures, and
how to build capacity in energy management. This task is expected to run over a two-year period and
will be led by the Energy and Water Agency, with input from the appropriate educational facilitators
and sectoral stakeholders. Any courses developed thereafter will be outsourced. The setting up of the
dissemination programme will require a budget of €20,000 annually.
In 2019, the Malta Business Bureau
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, launched a business cluster on energy efficiency which brings
together experts, suppliers, and clients in order to facilitate knowledge transfer, exchange of best
practice and help identify solutions to challenges businesses encounter on energy efficiency projects.
Challenges could include sourcing specific technical expertise, financing of larger projects, and
administrative and bureaucratic hurdles. Government is set to provide support in line with State Aid
rules, in order that set ups such as Energy Clusters take shape.
Energy Audits
Non-SMEs
Regulation 10 of LN 196 of 2014 makes it mandatory for, and the responsibility of, non-SMEs
registered and doing business in Malta to carry out energy audits to the established quality level and
frequency. The first audits were submitted in December 2015 and will be repeated every 4 years
henceforth. Such audits can only be carried out by internal or external energy auditors who are listed
on the website of the REWS or by energy auditors eligible in other Member States. These auditors
must have an MQF Level 6 or higher qualification in an applied science discipline and have followed
an appropriate training course as per G.N. 13024. The Agency and the Regulator have regularly
published a guidance note addressed to enterprises which qualify for the statutory energy audit to
assist in the discharge of this responsibility. This guidance note is updated periodically as it benefits
from and builds upon the experience of previous audit programs.
The main objective of the Agency is to build on lessons learnt from previous cycles so as to ensure that
future Energy Audits performed by non-SMEs attain a higher quality. To take the audits a step further,
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The Malta Business Bureau represents the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels
and Restaurants Association (MHRA) in Brussels and Malta. It does so by liaising directly with the European institutions, the
Maltese Permanent Representation and with umbrella organisations such as BusinessEurope, EUROCHAMBRES and HOTREC
on all policy and funding issues affecting Maltese business interests.
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the Agency shall create an online tool through which enterprises can submit their audit outcomes.
Using such a tool, the data from the audits can be automatically uploaded and thus facilitate the
Agency’s work in terms of analysis of the data and feed into policy decisions reflecting the needs of
the local industry. The tool is budgeted to cost €50,000 and is expected to be developed in 2020.
SMEs
A scheme was setup in 2018 whereby Small and Medium sized enterprises can benefit from grants to
help them carry out Energy Audits of their premises/processes/plants/transport fleet. It is planned to
continue the scheme post 2020 (subject to state aid regulations) with an annual budget of €25,000.
Such enterprises would also be eligible to schemes mentioned in section 3.2.ii.
Households
Malta has one of the lowest energy intensity figures for households within the EU. Even so,
Government has, over the last decade, invested heavily in promoting and fostering energy efficiency.
In the case of households and other small consumers, the Government will continue incentivising the
uptake of new technologies, as well as fostering behavioural change where necessary. Information
campaigns will be run by the Government and these will be coupled by the free service offered by the
Energy and Water Agency whereby technical personnel visit households, hold discussions in order to
understand energy usage and, as a result, provide tailored energy conservation tips. An annual budget
of €10,000 will be required to support this action.
Special focus will be given to vulnerable and energy poor households. Energy efficiency schemes and
grants will specifically address vulnerable households including the elderly and will also address the
shift to technologies which require significant capital outlay, or which result in relatively long payback
periods. Malta already has in place an annual budget of approximately €200,000 to support a scheme
for vulnerable and energy poor households under which old appliances are replaced by new efficient
units.
Other Actions
Regular training sessions and seminars for energy auditors have been organised whereby best
practices are shared with the aim to continue to ensure capacity building of national expertise and
higher quality audits. These events also target the analysis of grey areas of expertise observed from
the ex-post assessments of past audits. Auditors will be encouraged to work together as teams,
building a pool of expertise, to provide more comprehensive audits which cover the various aspects
of energy use. Training sessions for industry employees on energy efficiency measures shall be
organised to target both their place of work as well as the employees’ households. This will be part of
a holistic campaign to promote energy efficiency and renewable energy, starting in 2019.
The Energy and Water Agency will also be undertaking initiatives to help raise awareness amongst the
public on behavioural changes which can help save energy. These include studies as well as
educational and social media campaigns in order to increase energy efficiency in households.
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Description of measures to utilise energy efficiency potentials of gas and electricity
infrastructure
Enemalta dispatches the available generating plant and interconnector in a manner to meet demand
at minimum cost. The dispatch strategy continually adapts to the hourly prices of the energy available
from the European Day-Ahead and Intra-Day markets, eight in all, which may be imported (or
exported) over the Interconnector. The main elements – i.e. Delimara 4, Delimara 3, and the
Interconnector – are dispatched each hour of the day in a manner which is most economical and least
costly.
Regional cooperation in this area
Malta’s national authorities responsible for implementing the Energy Efficiency Directive have been
actively participating within the Concerted Action of the Energy Efficiency Directive (CA-EED) project
since its initiation in 2008. Malta considers the CA-EED a useful regional cooperation forum for the
sharing of best practices and dissemination of knowledge on the implementation of the Energy
Efficiency Directive. Malta has been fostering a working relationship with all CA-EED members, in
particular with other Member States with similar geographical specificities, which tackle comparable
challenges in implementing energy efficiency measures. In this sense, the CA-EED has proved to be a
useful structure for knowledge-sharing between Member States’ experts. The CA-EED is currently in
its second grant agreement and will continue to run until 2021, financed under the EU’s Horizon 2020
research and innovation programme. Maltese authorities will continue their involvement within this
forum in view of the transposition requirements of the EED recast following the Directive’s entering
into force.
Malta’s Energy and Water Agency also participates in the ODYSSEE-MURE project funded by Horizon
2020. National experts actively contribute to and ensure that the ODYSSEE database is regularly
updated with the most recent and detailed national energy-related data. Malta is also taking full
advantage of the MURE database, which focuses on the collection and evaluation of all energy
efficiency measures implemented in Member States and at EU level. The database contains detailed
energy efficiency indicators, including specific data and policy tools which can be used by decision-
makers in the area of energy efficiency.
Financing measures, including EU support and the use of EU funds in this area at
national level
The predominant source of funding of Malta’s energy efficiency measures are national
funds. National authorities responsible for implementing specific energy efficiency measures and
carrying out specific projects are responsible for their financing. Nevertheless, the use of EU funds is
and will continue to be used as a complementary financing tool to national funds for energy efficiency
measures.
The current Operational Programme I ‘Fostering a competitive and sustainable economy to meet our
challenges’ for the 2014-2020 period, aims to enable the shift towards a more low-carbon and
environmentally-friendly society. Within the Operational Programme, emphasis is placed on
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environmental sustainability, increasing RES, energy efficiency in buildings as well as promoting a shift
to a low-carbon transport sector. Priority Axis 4 of the Programme, tasked with shifting towards a low-
carbon economy, enables the allocation of EU funds for specific energy efficiency measures and
projects. In 2017, three projects were allocated ERDF funding of over €5 million in total under the
category of Energy Efficiency renovation of public infrastructure, demonstration projects and
supporting measures. These projects focused primarily on the retrofitting of street lighting and
upgrading and retrofitting of public buildings.
For the next programming period 2021 – 2030, Malta shall seek to secure funding to continue to
support the deployment and integration of RES and energy efficiency-measures in households,
industry and services, and Voluntary Organisations. As explained earlier, several EE measures are not
deemed as financially viable which leads to a significant funding gap. A similar situation exists for small
scale RES such as Solar Water Heaters (SWH) and Heat Pump Water Heaters (HPWH). The uptake of
the former has dwindled over the past years, and the latter technology has yet to take off.
Furthermore, thousands of solar water heaters are expected to reach their end of life in the next 5
years. In order to meet the renewable energy contribution as well energy efficiency targets under
article 7, it is estimate that around 800 households would need to be supported to purchase either a
SWH or a HPWP each year until 2030. Government support would need to be leveraged by EU funding
if this figure is to be achieved. The budget for this measure is estimated at 14 million Euros. Malta is
also banking on EU Funds to support Energy Efficiency actions by Voluntary organisations, industry
and services sectors. The total budget for the aforementioned is set at 5 million euros and 17.5 million
euros respectively.
The conclusions of an ex-ante assessment carried out by the EIB on behalf of the Managing Authority
in connection with the design of a financial instrument to support EE and RES confirmed the above,
and found that the main existing demand came from the commercial sector. It was made clear that
there is a need for a dedicated technical assistance package together with a culture shift. Flexibility is
also needed from an eligibility point of view. The nature of the instrument to be offered to the market
will need to be confirmed after the results of the ex-ante assessment are discussed with the
relevant stakeholders and an investment strategy is drafted to address the identified needs. The form
and type of support will be analysed and the calls for Financial Intermediaries that will be responsible
for making the instrument available both to residential and non-residential sector will be issued.
[Where applicable] Description of policies and measures to promote the role of
local energy communities in contributing to the implementation of policies and
measures in points ii, iii, iv, and v
With respect to renewable energy communities, there is limited potential for their development and
for establishing targeted policies and measures, mainly as a result of the structure of the electricity
distribution and supply system and related derogations for Malta under Directive 2009/72/EC and
Directive (EU) 2019/944.
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Consideration of the ‘Energy Efficiency-first’ principle
Malta is fully aware of the importance given to the “Energy Efficiency-first” principle within the
framework of the Governance Regulation, including the requirement to take into account
interlinkages between the five Energy Union dimensions, in particular the “Energy Efficiency-first”
principle, as stipulated in Article 3(3)(b) of the Regulation.
The Energy Efficiency-first principle has already been considered in Malta’s energy planning, policy
and investment decisions. Energy efficiency was treated as a priority element in recent investment
decisions in Malta’s power generation sector and energy infrastructure which transformed Malta’s
energy mix from one based on heavy fuel oil to a more sustainable energy mix based on gas, electricity
imports through the Malta-Italy interconnector and renewable energy sources (gasoil is used as a
backup fuel). The principle is further strengthened in the Malta-Italy gas pipeline project that will
connect Malta to the Trans-European Gas Network. Malta’s energy policy, previously reflected in
consecutive NEEAP and NREAP plans, already takes strong account of “Energy-efficiency first”,
whereby it remains an underlying principle during the identification and design of policies and
measures aimed at achieving cost-effective energy savings in end-use sectors. The implementation of
the principle is in itself implicit in the way measures are selected and policies adopted, and would
therefore not feature as an explicit measure to be identified under each of the five dimensions of
Malta’s NECP.
There are, however, other factors that need to be equally considered when applying the “Energy First”
principle in energy planning, policy and investment decisions which need to give due importance to
security of supply and cost-efficiency. In cases related to national security or national heritage
projects, the energy efficiency first principle can therefore only be implemented within constrained
parameters.
3.3 DIMENSION ENERGY SECURITY
Policies and measures related to elements set out in 2.3
Melita TransGas Pipeline
Malta is working actively on the development and implementation of the Melita TransGas Pipeline
(“MTGP”) from Delimara (Malta) to Gela (Italy), that would end its isolation by connecting the island
to the trans-European Natural Gas Network. This would allow the transportation of gas from the
Italian gas network necessary to meet Malta’s gas demand for power generation and provide the basis
for the development of an inland gas distribution market.
MTGP Project has been selected as a Project of Common Interest (PCI 5.19) under the priority corridor
“North South gas interconnections in Western Europe” in the first, second and third PCI lists. It poses
a means to fulfil EU strategic energy policy goals on energy solidarity between Member States, the
formation of an Internal Energy Market, diversification of sources, reduced dependency on a single
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supply source and improved energy security. Indeed, the conclusions of the European Council of
February 2011, and reiterated in October 2014 stated that “No EU Member State should remain
isolated from the European gas and electricity networks after 2015 or see its energy security
jeopardized by lack of the appropriate connections”, corroborating the urgency of MTGP
implementation.
In August 2018, Melita TransGas Company Limited (‘MTG’) was established as a public undertaking to
succeed the obligations of the Ministry for Energy and Water Management (as the previous Project
Promoter of PCI 5.19) for the implementation, construction and commissioning of the MTGP. The
company would also be entrusted with the operation of the transmission infrastructure and has taken
the role of the prospective Transmission System Operator.
The Maltese Government fully supports the implementation of the MTGP, including it in all the plans
and programmes aiming to ensure diversification of gas supply sources and increase security of supply
by connecting Malta to European gas networks.
As portrayed in Figure 103, the peak demand and electricity generation demand are projected to
continue to increase. Whilst the Electricity Supply Study is expected to present optimal solutions to
meet the expected growth in electricity demand, the range of solutions are limited within the context
of the present configuration:
• The LNG facility at Delimara (tender issued in 2013) was sized in such a way as to ensure
that together with the installed power generation, interconnection capacity and projected
growth in PV installations, the electricity system would be able to meet peak load and
demand whilst ensuring the desired level of system adequacy. However, the latest
national electricity demand projections, developed for the purpose of this NECP, indicate
a much steeper growth in demand (peak demand reached 510MW in 2019
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), which is
expected to be sustained in the short to medium term. This requires urgent solutions, to
be in place to maintain the present level of security of supply. The size and operational
limitations of the LNG facility impinge on the range of possible options;
• The present LNG facility also has inherent limitations such as the inability to provide
natural gas to the power plants during specific (bad) weather conditions, which could lead
to a situation where supply to consumers would need to be curtailed should this occur
during periods of high demand;
• The main purpose of the LNG facility was to enable the country to switch from heavy fuel
oil to natural gas in the shortest possible time, but was always intended as a short term
solution in view of the pipeline project. This is also reflected in contractual arrangements
between Enemalta and the suppliers of LNG which provides for a gas-exit clause after 10
years of operation to coincide with the projected commissioning of the pipeline;
• The LNG facility is designed to service exclusively the power sector. The LNG supplier and
operator of the LNG facility is not allowed to supply other clients with gas in view of its
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https://www.enemalta.com.mt/news/high-electricity-demand-registered/
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obligations under the assigned SGEI (to ensure the desired level of security of supply) and
in line with Malta’s notification and subsequent Commission Decision SA.45779. This
restricts the development of an inland market for natural gas. It is expected that the
commissioning of a natural gas pipeline, which would be subject to the rules of 3
rd
Energy
package, would provide a good basis for the development of an internal market for natural
gas.
The Government of Malta therefore considers the pipeline as an essential element for the
development of its electricity system necessary to provide the desired flexibility, reliability and level
of security of supply with regards to future solutions which are deemed critical to meet additional
demand.
Moreover, in view of the climate change policies at the EU level, the implementation of the pipeline
will eliminate the GHG emissions from the current liquefaction, shipping and regasification activities
necessary for the LNG supply.
The development of the pipeline shall also take full account of Malta’s commitment to decarbonise
its economy and will ensure that at the design stage features are included which do not preclude its
use to carry green fuels such as biogas and hydrogen should the distribution of these products over
the European gas grid becomes mainstream in the future. Such a development would greatly
contribute towards Malta’s future efforts to increase its renewable energy share given the limited
effective RES resources and clear trend towards electrification.
The project envisages a gas pipeline interconnection between Gela (Sicily-Italy) and Delimara (Malta)
currently designed as a 22 inches (560mm) diameter, 159km length and with a bi-directional flow
capacity of 2 Bcm/y at standard conditions.
MTGP has been repeatedly included in the national Ten-Year Network Development Plan (TYNDP) of
the Italian TSO (SNAM Rete Gas) confirming that it “is ready to implement the necessary measures to
facilitate the connection to the national network, when the progress of the project will prefigure an
effective commitment to its realization”.
At European level, MTGP (ENTSOG Project Code: TRA-N-031) has constantly been submitted and
included in the Union-wide TYNDP of 2013, 2015, 2017 and 2018 elaborated by ENTSOG pursuant to
the Regulation (EC) No 715/2009.
MTGP has already benefitted from the co-financing of studies through the TEN-E and Connecting
Europe Facility (CEF) Programmes with more than €4.5 million in EU grants allocated for the
preparatory studies, including those completed and the ones to be conducted in the next stages of
the project implementation up to the end of 2020:
• the Pre-feasibility study and Cost-Benefit Analysis, completed in April 2015, determined that
the project is feasible and identified the most economical project technical configuration;
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• the Basic Design study completed in June 2017 identified the optimal 1.2km wide offshore
route corridor, landfall areas, on-shore routes, connection points and sites and areas of the terminal
stations in both Delimara (Malta) and Gela (Sicily), and enabled the start of the permitting procedures
in both Malta and Italy;
• in 2018 activities related to the environmental studies, a preliminary marine route survey and
the front-end engineering design were commenced.
• a cross-border cost allocation decision was issued jointly by the Maltese and Italian National
Regulatory Authorities on the 4th of June 2019 which states that Malta should bear 100% of the costs
of the MTGP project and as such, no monetary transfer is needed between Italy and Malta.
The project promotor is seeking financing avenues including the possibility of bringing onboard a
strategic partner. A Final Investment Decision, is expected to be taken by the end of 2020. This will
be followed by the publishing and award of an engineering, procurement and construction (EPC)
contract. Table 7 provides an overview of the preliminary project implementation plan.
Table 7 – Gas pipeline project implementation plan
Timeline
Description
November 2017
Start of pre-application permitting procedures in
Malta and Italy
2018
Start of preliminary marine route survey (PMRS),
Front-End Engineering Design, and EIA studies
2019
Cross Border Cost Allocation Decision issued
jointly by Maltese and Italian NRAs
2020
Submission of Full Permit Application Files to
Maltese and Italian Competent Authorities
2021
Publishing of Tender for EPC Contract
2022
EPC Contract Award
2025
Construction & commissioning completed
Critical Infrastructure Protection
Critical Infrastructure Protection Unit
In accordance with Article 3 of Legal Notice 434/2011 transposing Directive 2008/114/EC, the
Government established the Malta Critical Infrastructure Protection (CIP) Unit within the Ministry for
Home Affairs and National Security. Its aim is to strengthen and secure the functioning and resilience
of Malta’s critical infrastructure and national emergency services. The fundamental role of the CIP
Unit is to direct and advise owners and operators of critical infrastructure regarding necessary internal
systems to identify vulnerabilities and risks, and the planning for contingencies. It ensures that the
necessary risk assessments are carried out, and contingency plans are in place and reviewed on an
ongoing basis. It also coordinates and supports general emergency preparedness plans for response
to national emergencies, including coordination with other European Member States and the
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European Commission. LN 434/2011 identified energy as a key critical infrastructure (CI), and specified
the following subsectors: electricity, oil and gas. Each designated critical and emergency organisation
is required to identify Security Liaison Officers (SLOs) and Emergency Liaison Officers (ELOs), which act
as the points of contact for security related issues between the owner or operator of the critical
infrastructure (CI) and the CIP Unit. The CIP Unit’s responsibility is to assess whether each designated
CI possesses an Operator Security Plan (OSP) and has in place equivalent security, technical,
communication and organisational measures.
Under LN 434/2011, every owner or operator of a designated critical infrastructure is required to draw
up and maintain an Operator Security Plan (OSP). In this regard, Enemalta has developed an OSP for
the generation sector and for the distribution sector, with the overall goal of ensuring a reliable supply
of energy, identifying measures to ensure the protection of critical assets/systems and ensuring safety
measures are in place, and drawing up contingency plans for restoration and recovery times in the
case of loss of assets/systems.
Cyber-security in the energy sector
Directive (EU) 2016/1148 of the European Parliament and of the Council concerning measures for a
high common level of security of network and information systems across the Union is transposed
into national legislation through the Measures for High Common Level of Security of Network and
Information Systems Order
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(Legal Notice 216 of 2018). The order establishes the Critical Information
Infrastructure Protection Unit (CIIP unit) within the Critical Infrastructure Protection Directorate,
responsible for monitoring the application of the Order, which includes the establishment of criteria
for the identification and designation of essential services within Malta as well as identifying the
designated operators of essential services in Malta. The CIIP unit is also tasked with encouraging the
use of European or internationally accepted standards and specifications relevant to the security of
network and information systems. Electricity, oil and gas undertakings are included as operators of
essential services in the energy sector.
The requirements and tasks of Computer Security Incident Response Teams (CSIRTs) within designated
operators are also spelled out in the legislation. CSIRTMalta, the national CSRIT Unit within the CIIP
Unit, supports critical infrastructures (CIs), Critical Information Infrastructures (CIIs) and other
sensitive infrastructures in Malta on how to protect their information infrastructure assets and
systems from cyber threats and incidents. CSIRTMalta also promotes the sharing of unclassified
information which is useful against cyber-attacks and provides alerts and warnings to its constituents
and internal autonomous CSIRTs.
A number of measures are currently being prepared by the Critical Infrastructure Protection
Directorate to enhance the cyber security across multiple sectors, including energy. This includes the
following:
(i) Identified Operators of Essential Services are encouraged to establish their own Computer Security
Incident Response Team (CSIRT) under the local transposition of the NIS Directive (L.N. 216 of 2018).
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Measures for High Common Level of Security of Network and Information Systems Order (Legal Notice 216 of
2018):http://justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=29161&l=1
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(ii) CSIRTs within Operators of Essential Services (OES) are encouraged to take part in CSIRTMalta
constituent program and uptake a number of recommended measures such as access to the Malware
Information Sharing Platform (MISP) and take part in regular training workshops.
(iii) CSIRTMalta managed to successfully apply to an EU funds program and acquired 1.2 million EUR
in funds to assist OES's CSIRTs in purchasing equipment and necessary training such as MISP training
and TAP devices.
Cyber-security risks were also considered within the existing contingency planning, such as the Risk
Assessment and Preventive Action Plan and Emergency Plan under the Gas Security of Supply
Regulation. The Critical Infrastructure Protection Directorate (CIPD) was consulted during the
development of these plans to ensure that gas facilities are classified with respect to designated
essential services, that the appropriate cyber-security measures are in place which enable the manual
override of electricity and gas facilities in the event of a cyber-attack.
Gas Security of Supply
The Security of Gas Supply Regulation (EU) 2017/1938 of the European Parliament and of the Council
of 25 October 2017 requests the competent authority of each Member State to carry out multiple
tasks, which includes the development of a gas security of supply national Risk Assessment, a
Preventive Action Plan and an Emergency Plan. The Ministry for Energy and Water Management, as
the designated Competent Authority for Malta, delegated these tasks to the Energy & Water Agency.
In line with Annex I of the same regulation, Malta forms part of four risk groups, which are also
required to prepare a Risk Assessment and the regional chapters for the preventive and emergency
action plans:
• North African gas supply risk groups:
• Algeria: Greece, Spain, France, Croatia, Italy, Malta, Austria, Portugal and Slovenia
• Libya: Croatia, Italy, Malta, Austria and Slovenia
• South-East gas supply risk groups:
• Southern Gas Corridor – Caspian: Bulgaria, Greece, Croatia, Italy, Hungary, Malta,
Austria, Romania, Slovenia and Slovakia
• Eastern Mediterranean: Greece, Italy, Cyprus and Malta
Article 20 (2) of the Regulation states that, for the time being, the obligations related to the work of
the South-East gas supply risk groups shall remain on hold and start only from the date when the
major infrastructure/pipeline enters the test operation. On the other hand, the Libyan and Algerian
risk groups have completed the common risk assessment and the relevant document has already been
submitted to the Commission.
Malta’s National Risk Assessment in line with Article 7(3) of the Regulation was completed and
submitted to the European Commission in December 2018. The Risk Assessment considered the loss
of the gas facility at Delimara on a day of peak demand with a likelihood of occurring once in 20 years.
As the only use of natural gas in Malta is for electricity generation, the Risk Assessment considered
how the loss of the LNG facility would impact the supply of electricity. Since meeting electricity
demand is more sensitive to within-day peaks as compared to gas, Malta’s Risk Assessment also
considered within-day peak periods. The Risk Assessment identified that should the single largest
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piece of gas infrastructure be lost, Malta would be unable to meet all gas demand should this coincide
with an exceptionally high energy demand day. The “N-1” principle identified that at a daily level, peak
demand can be met by relying on all other sources of electricity, such as gas-oil-fired generation units,
the electricity interconnector and indigenous PV generation. However, the Risk Assessment also
demonstrated that whilst solar PV contributes in aggregate and in daylight hours, peak electricity
demand in afternoons and evenings cannot be completely met without gas for electricity production.
The Risk Assessment also highlighted the strategic national importance of the Delimara site and the
need to ensure its security and resilience against natural hazards and man-made threats. Multiple risk
scenarios were identified and adapted to gas security of supply.
Article 8(2) of the Regulation requires that Member States develop a Preventive Action Plan
containing the measures needed to remove and mitigate the risks identified in the Risk Assessment
and an Emergency Plan outlining the measures to be taken to remove or mitigate the impact of a
disruption of gas supply.
The Preventive Plan established a list of preventive measures in place, or to be adopted, to address
the risks tied to a disruption of gas supply, as well as the measures and obligations of relevant
stakeholders which contribute to the prevention of a gas disruption of supply. The list of preventive
measures includes physical security arrangements, periodic technical and engineering inspections and
monitoring, national security measures, legal, statutory and operational obligations, as well as
measures promoting the use of RES, energy efficiency measures, measures promoting the
diversification of sources of energy supply, as well as measures available at regional level identified
within the relevant Risk Groups. Malta does not have household gas customers, SMEs or essential
services that are connected to a gas distribution network or gas district heating network. Nevertheless,
customers are vulnerable if the supply of gas is restricted or stopped through the reduced availability
of electricity. To minimise the impact from a gas supply disruption, Malta will maintain a formalized
procedure for prioritising electricity supply to these groups of vulnerable customers.
The Emergency Plan defined three main crisis levels related to a disruption of gas supply: early
warning, alert and emergency, and outlined the roles and responsibilities of specific actors, such as
the competent authority (MEW), natural gas undertakings, the electricity distribution system
operator, the national regulatory authority, the Civil Protection Department and other stakeholders
per each crisis level. The Plan also identified the measures and actions to be taken to mitigate the
impact of a disruption of gas supply on the electricity sector and the mechanisms and provisions in
place to ensure the appropriate coordination and exchange of information between the main actors
in the gas and electricity sectors. Apart from the escalation process, going from one crisis level all the
way to an emergency situation, the Plan also outlines the measures and responsibilities for the process
of de-escalating an emergency situation back to business-as-usual.
The Preventive Plan and Emergency Plan are being submitted to the European Commission by the end
of 2019 and will be made public thereafter. The risk assessment, preventive action plan and
emergency plans shall also be updated every four years. This periodic reporting cycle allows Member
States to assess the risks leading to a potential gas supply disruption and identify the necessary
preventive measures and emergency measures on a regular basis. The Melita Trans Gas Pipeline would
have a significant impact on Malta’s energy security and would introduce new risks and require the
implementation of new preventive and emergency measures. This would be reflected in future
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updates of the plans under the Gas Security of Supply Regulation should the pipeline come into
operation.
Risk Preparedness in the Electricity Sector
Enemalta plc, as the designated Distribution System Operator in Malta is responsible for ensuring the
security of electricity supply within the Maltese Islands. In this sense, the Competent Authority and
Enemalta, are obliged to comply with Regulation (EU) 2019/941 on risk-preparedness in the electricity
sector repealing Directive 2005/89/EC. The Regulation sets out a common framework of rules on how
to prevent, prepare for and manage electricity crises whilst ensuring that measures are taken in a
coordinated and effective manner, including solidarity measures between Member States. As per the
Regulation, Member States are required to ensure that all relevant risks relating to the security of
electricity supply are assessed, identify electricity crisis scenarios and subsequently establish Risk-
Preparedness Plans, which consist of national and regional measures to prevent, prepare for and
mitigate electricity crisis. This Risk-Preparedness Plan will be developed in line with the Regulation.
Taking cognizance of the obligations arising out of the now repealed Directive 2005/89/EC, Enemalta
conducted a risk assessment in the second half of 2018. This covered the assets and systems pertaining
to power generation and power distribution, together with all the legal obligations imposed on
Enemalta in relation to its role in power generation and distribution.
The assessment focused on national risks such as marine oil spills, pandemics, earthquakes, major
mass casualty incidents, terrorist attacks, irregular migration, drought, flood, severe weather, release
of major hazardous materials, cyber-attacks, and others. In addition, it took into consideration risks
identified in the Critical Infrastructure Protection Directorate’s National Risk Assessment; this included
risks arising from incidents occurring to the company’s major assets and systems, as well as third party
assets which might affect Enemalta’s operation such as risks from accidental fire or explosion at major
sites, major damages to plants, etc. The assessment was built on a number of safety reports which
have been conducted by Enemalta in this regard in the past.
A specific risk assessment was also conducted in relation to the security of electricity supply,
identifying crisis scenarios in relation to system adequacy, system security and fuel security on the
basis of the following risks:
• Rare and extreme national hazards;
• Accidental hazards which lead to a breach of the N-1 security criterion; and
• Consequential hazards including consequences of malicious attacks and of fuel shortages.
The risk assessment ran multiple crisis scenarios to develop an understanding of the interaction and
correlation of risks at national level between different assets, and the interaction and correlation of
risks across the border from Sicily in relation to the interconnector. Also, simultaneous crisis scenarios
were simulated.
Oil Supply Disruption Emergency Plan
EU Directive 2009/119/EC amended by Commission Implementing Directive (EU) 2018/1581, which
requires Member States to maintain minimum stocks of crude oil and petroleum products, was
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transposed into national law through Legal Notice 109 of 2013 and amended by Legal Notice 156 of
2019. Regulation 18(2) of this legal notice requires the REWS to develop contingency plans that would
be implemented in the event of a major supply disruption. In this regard, REWS prepared the Oil
Supply Disruption Emergency plan, to be activated in the event of difficulties arising in the supply of
crude oil and petroleum products. This is in the process of being finalised.
The document outlines the strategic approach to be taken in the management of an oil supply
disruption emergency in Malta. The Plan ensures that, as far as possible, the institutions, information,
hardware and infrastructure are available, ready, and coordinated to perform efficiently and
expeditiously in any emergency involving oil supply, while allowing a certain freedom and flexibility to
respond effectively to any circumstances as they arise. It also highlights the arrangements to be
established between the oil industry, the REWS and the European Commission for the safe and
effective management of oil supply emergencies. The scope of the original plan does not cover natural
gas.
Under the Contingency Plan, an Oil Supply Disruption Task Force may be appointed on an ad hoc basis,
depending on the disruption/interruption event that arises. The Task Force would be made up of high
officials representing the Ministries responsible for energy and for finance, the Regulator for Energy
and Water Services, and oil suppliers and importers, under the Chairmanship of the Minister for
Energy and Water Management. The Task Force would be in a position to collaborate with high fuel
consumers potentially affected by an oil supply disruption. If the emergency is the consequence of a
natural disaster, the Oil Supply Disruption Task Force would work closely with the Civil Protection
Department, which has the overall responsibility for emergency response to such events. The Task
Force would also advise the Minister on what measures, proportionate to the situation, to take,
monitor, analyse and report to the Minister on the situation and events, during activation of the
contingency plan. Finally, when the shortage is declared over, the Task Force is required to take stock
of lessons that could be learnt and update the Plan where required.
Emergency stock holding obligations
In Malta, the national emergency stock holding obligation is delegated to fuel importers and calculated
on the gross inland consumption attributed to each importer. The national emergency stock holding
obligation on aviation kerosene (Jet A1) constitutes an exception whereby the emergency stock is held
by the Regulator on behalf of the Government.
The emergency stock holding obligation must be met through emergency stock holding tickets in
Malta or any other EU country, except in those cases where the importer has a legal title to storage
(ownership or lease) and may claim emergency stocks held as physical stocks. The composition and
location of the security stock holdings may vary. For instance, during the first and second quarters of
2017, approximately 92% of the total amount of emergency stocks was in the form of tickets located
abroad, with the balance being held locally as either physical stock or tickets. In contrast, during the
third and fourth quarters of 2017, 51% of the emergency stocks were located in Malta while 49% were
held as tickets abroad.
Petroleum Exploration Activities
Malta has no indigenous energy sources that would provide a secure energy supply for the immediate
future and is dependent on imported fuels and electricity to meet its national demand. Domestic
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extraction of natural gas would enhance diversification of primary sources of energy, and exploitation
of crude oil would reduce Malta’s dependence on foreign sources for this commodity, although a
reliance on foreign refinery capacity would likely remain. In this regard, the Government will continue
to promote petroleum exploration opportunities, seeking to attract more investment in this sector,
and thus intensify offshore exploration around Malta. Where disputed boundaries exist, the
Government will continue to negotiate with neighbouring countries to arrive at mutually acceptable
solutions that would enable oil exploration to take place.
Although exploration for petroleum has been ongoing since 1954 when the first onshore exploration
licence was granted, no commercial discovery has yet been made. However, the level of interest
shown by oil companies in Malta attests to the potential of its petroleum geology. Indeed, Malta's
central location in the Mediterranean and its proximity to proven petroleum systems with producing
oil and gas fields in offshore Sicily, Libya and Tunisia makes Malta’s acreage attractive for petroleum
exploration.
Most of the past exploration activity has been focused offshore in an area of over 75,000 km
2
subdivided into areas and blocks, most of which are open to the oil industry for exploration. So far,
13 exploration wells have been drilled, two of them onshore. Such exploration activity has identified
good, drillable prospects in the sedimentary basins offshore Malta, analogous to existing producing
fields in the Central Mediterranean. Most of these prospects are yet untested, making the possibility
of a commercial discovery reasonably good.
Under national legislation, subsoil natural petroleum resources belong to the Government. According
to the Petroleum (Production) Act (Cap. 156), the Government has the right to issue licences to
companies to explore and produce petroleum. Two licences are available under the Petroleum
(Production) Regulations (S.L. 156.01): (i) an exploration licence which gives rights to suitably qualified
oil companies to execute a technical work programme, including the acquisition of geophysical data
but with no rights to produce petroleum; and (ii) an exploration and production licence which gives
rights to oil companies to drill exploration wells and, in case of a commercial discovery, to produce
such petroleum. Exploration and production of petroleum in Malta enjoys a favourable legal regime.
Under current legislation, the administrative process of granting exploration and production licences
is short and of a duration compatible with the decision-making process of oil and gas companies.
Although the Government will continue to promote petroleum exploration opportunities, these
should not be seen in contradiction to the long-term decarbonisation goals of the Union and its
Member States, which are at the forefront of the Energy Union Governance framework and the NECP.
The Government’s commitment remains to support the deployment of viable and effective indigenous
renewable energy sources, whilst already having moved to a more sustainable energy mix based on
natural gas and the electricity interconnector. The role of gas-based generation will be important to
sustain energy demand in the medium-term on the road to decarbonisation of the energy system in
the long-term.
Energy Storage solutions
The Government is closely monitoring the development of the energy storage market considered
essential for further deployment of photovoltaic capacity and for optimization of the power system
by providing for demand management and peak demand shaving. This may postpone the requirement
for new power generation facilities. In this regard, the Government will be assessing cost-effective,
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technically viable options to increase the flexibility of Malta’s power system whilst ensuring the
desired level of security of supply and further integration of low carbon technologies.
It’s important to note that the range of storage solutions which could be successfully implemented in
Malta is also limited. For instance, the predominant large-scale energy storage solutions, such as
pumped-storage hydropower are not available in the Maltese context. As per projections under the
‘With Planned Measures’ scenario, the capacity of solar photovoltaics is expected to increase from
112 MW in 2017 to 266 MW by 2030.
Policies and measures to promote the deployment of renewable sources of energy, including solar PV
generation, are described in more detail under the Decarbonisation dimension.
Demand Management
Demand side management is currently limited to differentiated night and day tariffs for non-
residential consumers with an annual consumption of 5 GWh or more. There is only one supplier of
electricity in Malta and therefore the onus to meet the energy demand, including peak demand is on
Enemalta plc. as the DSO. Enemalta maintains a gasoil-powered back-up generation plant having a
total nominal capacity of 180 MW which is used in case of an emergency and which provides black
start capability.
Regional cooperation
The role of the CIP Unit, in charge of coordinating and supporting general emergency preparedness
plans under Legal Notice 434/2011 on the identification and protection of critical infrastructures,
includes collaboration with other European Member States and the European Commission.
Malta also cooperates with other European Member States on national emergency stock holdings. In
2017, emergency stocks for Malta in the form of tickets were located in the Netherlands, Spain, Ireland
Sweden, Finland, Italy, Slovenia and Belgium in 2017. During this year, Malta held emergency stocks
as tickets for the United Kingdom, Sweden and Cyprus. These arrangements are approved by the
competent authorities of the Member States, in the case of Malta by REWS.
Regional cooperation is expected to be most prevalent with respect to the implementation of the
MTGP pipeline. The execution of the technical and environmental studies for the development of the
PCI are being conducted in close consultation with the Italian TSO, PCI one-stop shop (MISE) and
Central Government Authorities (MATTM), the Sicilian Regional Authorities including the Gela Council,
as well as the concerned Sicilian stakeholders. Such continuous cooperation will ensure that any
critical issues raised at this early stage of the project, especially in relation to the permitting process,
will be considered in the planning and design stages. Public consultations in Marsaxlokk (Malta),
Rome, Palermo & Gela were also held in April 2018 for this purpose. A second public consultation will
be held during the statutory procedure of the permitting process.
As regards the permitting process, inter-ministerial discussions with the Ministry of Economic
Development (Ministero Dello Sviluppo Economico ‘MISE’) of Italy, which has been designated as the
‘one stop shop’ for the PCI permit process in Italy, commenced in May 2014 through a high-level
meeting held in Rome between the Maltese Government and MISE, with representation from Snam
Rete Gas, the Italian Regulatory Authority, the Maltese Regulatory Authority and presided by the
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Maltese Ambassador for Italy. Following this initial meeting, a number of follow-up meetings were
held during the past two years with various authorities and stakeholders. In May 2017, a letter of
intent was also signed between Government of Malta and the Sicily Region formalising the intention
of both parties for collaboration in terms of permit granting.
Regional cooperation is also an important element under the Security of Gas Supply Regulation. As
mentioned above, Malta forms part of the active Libyan and Algerian Risk Groups. The Common Risk
Assessments for Algeria and Libya confirmed that Malta is not at significant risk from disruption to gas
supply from either country. The only source of natural gas in Malta is imported LNG. To date, LNG
used in Malta has not been sourced from Algeria or Libya. The Regional N-1 analysis demonstrated
that the technical capacity of remaining gas infrastructure within these Risk Groups is adequate to
meet maximum gas demand in the event of a disruption to the single largest piece of infrastructure.
The Regional chapters of the Preventive Plan and the Emergency Plan also identify various
mechanisms developed for cooperation between Member States, such as the exchange of relevant
information between Competent Authorities, risk groups, and the Gas Coordination Group organized
by the European Commission.
Should the MTGP pipeline become operational, the risk to Malta in the context of these risk groups
will change and the risk to gas security of supply will be reassessed accordingly. The gas pipeline would
also open up a new range of regional measures and cooperation mechanisms for the prevention and
mitigation of a disruption of gas supply, including solidarity arrangements between neighbouring and
interconnected Member States and interconnection agreements between adjacent TSOs.
Under the new Risk-Preparedness Regulation in the electricity sector, Member States are required to
act and cooperate in a spirit of solidarity in order to prevent or manage electricity crises. Regional and
bilateral measures have to be agreed upon by Member States for the purpose of protecting public
safety and personal security and outlined in their Risk-Preparedness Plans. Malta’s national Risk-
Preparedness Plan will be developed in the coming future and will take into account solidarity
mechanisms, in particular through the electricity interconnector with Italy.
[If applicable] Financing measures in this area at national level, including EU support
and use of EU funds
As explained in previous sections, EU funds are being sought to develop the Malta-Italy gas pipeline.
Funding was also sought to carry out a Technical study and CBA for LNG as marine fuel in Malta. Future
development of storage infrastructure may also seek EU funding to ensure the realization of projects,
which whilst providing significant economic benefits, would otherwise turn out to be financially not
viable. Apart from funding mechanisms falling under the Multiannual Financial Framework, Malta will
continue to seek to tap direct EU funding opportunities.
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3.4 DIMENSION INTERNAL ENERGY MARKET
3.4.1 Electricity infrastructure
Policies and measures to achieve the targeted level of interconnectivity
As indicated in section 2.4.1. on the national objectives and targets in the area of electricity
interconnectivity, the level of interconnectivity is expected to remain well above the EU-wide target
of 15%, as required under the Governance Regulation.
Regional cooperation in this area
Cooperation between the Maltese and Italian authorities on issues of electricity interconnection has
always been very strong. Since 2015, continued coordination between Enemalta and the TSO in Italy
has ensured the optimal functioning of the electricity interconnector.
Financing measures in this area at national level, including EU support and use of
EU funds
There are currently no plans for a second electricity interconnector. However, this is subject to the
outcome of an ongoing in-depth Electricity Supply Study commissioned by the Government for the
period 2019-2035. There are no electricity transmission systems and electricity transmission system
operators in Malta. Enemalta continues to perform the functions of the DSO and that of the sole
supplier of electricity to final consumers. Financing measures in the area of electricity infrastructure
are handled by the DSO, which in view of its obligation to supply electricity to all consumers allocates
internal funding as required. Should the outcome of the aforementioned study suggest the need for
an additional electricity interconnector, Malta would consider EU support and the use of EU funds to
supplement national funding.
3.4.2 Energy transmission infrastructure
Policies and measures related to elements set out in 2.4.2
The delivery of PCI 5.19, the Malta-Italy gas pipeline, including the regional cooperation aspect and
financing measures are described in detail under the Energy Security dimension, in particular in
section 3.3.i outlining the policies and measures to reach the objectives and targets established under
the Energy Security dimension.
Regional cooperation in this area
Currently, regional cooperation on energy transmission infrastructure is mainly related to cooperation
on the Gas Pipeline Project, identified as a Project of Common Interest.
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[If applicable] Financing measures in this area at national level, including EU support
and use of EU funds
Financing measures for the Gas Pipeline Project are covered under the Energy Security dimension.
3.4.3 Market integration
Policies and measures related to elements set out in 2.4.3
The commissioning of the Malta-Italy gas pipeline shall not only lead to the designation of a gas TSO,
but also open the possibility for commercial operators to gain access to natural gas supplies. As the
main client is expected to be the power generation sector, it is being projected that this will drive
average local generation costs to align with those prevalent in Sicily/Italy, while taking into account
the additional transmission costs.
Following ongoing studies with regards to cost-effective options for the deployment of electricity
storage units, it is expected that these are supported (either through regulation, financial support
measures, or both) to allow for better integration of small-scale renewable, peak shaving and
potentially delaying additional generation capacity requirements and contributing towards the
desired level of system adequacy.
Enemalta is required to apply economic dispatch which would also include aggregation, demand
response and storage subject to technical requirements.
Public Service Obligations
The electricity distribution system covering Malta remains under the responsibility of one distribution
system operator which forms part of a vertically integrated company, Enemalta plc. Enemalta is the
only undertaking which is licensed to carry out all the three activities of generation, distribution and
supply.
ElectroGas Malta Ltd (EGM) owns and operates the combined cycle gas turbine (CCGT) at D4 running
on natural gas. The licence to generate electricity from this plant was issued by the Regulator
(REWS) to ElectroGas Malta Ltd in 2017. The CCGT plant was constructed as part of a single electricity
and natural gas supply project, the scope of which was to enhance the security of supply of electricity,
replace inefficient generation plants and switch to natural gas as the main source of local power
generation. The project and underlying agreements were subject to an assessment by the European
Commission under the Services of General Economic Interest (SGEI) framework which led to the State
Aid Decision SA 45779 (2016/NN) – Malta Delimara Gas and Power Energy Project. In its Decision, the
European Commission recognised the importance of the project for the security of electricity supply
in Malta. The Commission concluded that ElectroGas Malta Ltd has been entrusted with a Public
Service Obligation (PSO) to make available electricity and gas to Enemalta when dispatched and
nominated by Enemalta, and this entrustment constitutes a SGEI in terms of Article 106 of the Treaty
on the Functioning of the EU (“TFEU”).
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The project involves the following contractual structure:
I. Security of Supply Agreement (SSA) – agreement between the Government of Malta,
Enemalta and EGM to ensure that, should any circumstances arise which is capable of leading
to the termination of the other contractual agreements, or in the event that Enemalta is
unable to continue procuring electricity and/or gas from EGM, the Government will be able
to assume Enemalta’s obligations under the relevant supply arrangements.
II. 18-year Power Purchase Agreement (PPA) – supplying up to 215 MW of energy every hour
from D4 CCGT. The PPA is an agreement between EGM and Enemalta, whereby EGM agrees
to make available electrical energy to Enemalta, and to supply electrical energy when
dispatched by Enemalta. In turn, Enemalta agrees to pay for availability of D4 and the electrical
output delivered by EGM to electricity distribution network.
III. 18-year Gas Supply Agreement (GSA) – providing the volume of gas required to meet demand
to both D3 and D4. The GSA is an agreement between EGM and Enemalta, whereby EGM
agrees to make gas available to Enemalta, and to supply gas to D3 when nominated by
Enemalta. In turn, Enemalta agrees to pay for the availability of the LNG facility and the gas
delivered by EGM to D3. The GSA agreement will expire on the same date as other transaction
agreements, subject to early termination at the option of Enemalta, known as the “GSA Exit"
clause, which is designed to safeguard the envisaged future gas interconnector with Sicily.
As part of the agreements, EGM also agrees to procure LNG on a fixed and indexed price basis for
consumption as gas in D4 and delivery as gas in D3, and to procure and maintain the FSU for the term.
In 2014, by virtue of a public service agreement and pursuant to Recital 5 and Article 3(2) of Directive
2009/72/EC (“Electricity Directive”), the Government of Malta entrusted Enemalta plc. with the public
service obligation (PSO) to provide and maintain a reliable source of supply of electricity in Malta. By
contracting with EGM for the supply of gas and electricity to Enemalta, the latter delegated part of its
PSOs to EGM in compliance with Article 3(5) of the 1977 Enemalta Act.
As regards the existence of a genuine and clearly defined SGEI, the measures are indispensable to
ensure security of supply, which is an objective which justifies PSOs. In particular, the measures
guarantee system reliability and adequate generation capacity at all times, as per the N-1
requirements. As regards the amount of compensation for the SGEI, D4 and the Gas facilities will be
entirely dedicated for the attainment of the PSO. Payments under the Transaction Agreements
constitute the compensation for the provision of the PSO. The PSO has been set up with the aim of
ensuring security of supply and contributing to environmental protection and energy affordability.
The European Commission noted that the PSO complied with Article 3(2) of the Electricity Directive
based on the following conclusions:
• They are justified in the general economic interest as they aim to ensure security of supply,
which is specifically recognized in the Directive as a legitimate objective for imposing PSOs in the
electricity sector;
• They are proportionate since the use of a CCGT plant sourced by a local gas terminal, was
found to be the best available option in the context of Malta to ensure security of supply;
• They are clearly defined, transparent, non-discriminatory and verifiable;
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Measures to increase the flexibility of the energy system with regard to renewable
energy production
Thus far, the intermittent nature of renewable electricity sources has been mitigated by relying on the
interconnector to provide balancing services and to a lesser extent on local conventional facilities.
Distribution system secondary node reinforcements have been implemented to address issues related
to system current carrying capacity and voltage drop. However, further installation of renewable
energy capacity, particularly large-scale installations, will necessitate the implementation of different
mitigating strategies, namely storage, dispatching, and curtailment, which shall be dealt with in the
study being commissioned by the Government mentioned previously.
Mechanisms for dispatching, re-dispatching and curtailment
Enemalta’s Network Code approved by the Regulator in 2013 does not discriminate between
renewable and conventional generators. Generators less than 5MW are not subject to dispatch
(automatically dispatched), although there are no renewable energy installations larger than 5MW in
Malta. Enemalta is required to dispatch different generation sources on an economic basis and aim to
minimize the overall system costs. Enemalta has invested in dispatch optimisation software to
improve its capabilities.
No planned measures are envisaged for the establishment of real-time price signals and dynamic
prices, largely in view of there being no liquid wholesale market.
[If applicable] Measures to ensure the non-discriminatory participation of RES,
demand response and storage, including via aggregation in all energy markets
The legal framework has up to now provided priority dispatch for RES but this shall be aligned with
Regulation (EU) 2019/943 on the internal market for electricity. Enemalta is obliged to dispatch
electricity based on their order of economic merit, irrespective of whether this is from local generation
plants, from the interconnector or from storage.
Policies and measures to protect consumers, especially vulnerable and where
applicable energy poor consumers, and to improve the competitiveness and
contestability of the retail energy market
Vulnerable electricity consumers are catered for within the social policy framework. The Department
of Social Policy has established criteria whereby certain categories may be eligible to receive energy
benefits, which are deducted directly from the consumer’s electricity bill. Consumers that are eligible
include families with low income, households on social assistance, persons in receipt of
unemployment benefits, pensioners or the disabled.
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In 2017, 20,488 individuals received the energy
benefit. Malta’s assessment of the number of energy poor households is further described in section
4.5.4.
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https://socialsecurity.gov.mt/en/Short-Term-Benefits/Pages/Energy-Benefit.aspx
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Description of measures to enable and develop demand response including those
addressing tariffs to support dynamic pricing
No planned measures are envisaged for the establishment of real-time price signals and dynamic
prices due to the absence of a liquid wholesale electricity market in Malta, limited demand, and
relatively flat on-island production costs. Demand-side management is currently limited to
differentiated night and day tariffs for non-residential consumers with an annual consumption of 5
GWh (5.5GVAh) or more.
3.4.4 Energy poverty
Policies and measures to achieve the objectives set out in 2.4.4
Malta’s commitment to reduce poverty and social exclusion is manifestly reflected in the National
Strategic Policy for Poverty Reduction and for Social Inclusion 2014-2024, which acknowledges that
poverty is multidimensional and thus comes in many forms. To establish a better understanding of
poverty, this strategic policy document sets out to present the key indicators of poverty, namely,
absolute poverty and relative poverty. One way of measuring the latter is through the material
deprivation rate (MDR) which is defined as the number of persons living in households who are not
able to afford at least three out of nine deprivation items which include “mortgage or rent, utility bills,
hire purchase instalments or other loan payments” and “keeping their home adequately warm in
winter”. These two parameters are also actually defined as primary indicators for energy poverty by
the Energy Poverty Observatory.
For the purposes of Malta’s National Energy and Climate Plan which requires an assessment of energy
poverty as distinct from the overarching concept of poverty, the former is defined as “whether a
household can afford the necessary energy services to meet its basic daily living requirements.” The
inability of households to keep their homes adequately warm is the indicator being used to assess the
level of energy poverty in Malta.
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Figure 29 - Percentage of households unable to keep their home adequately warm in Malta compared to EU
average, % (Source: Eurostat)
Figure 29 illustrates the great strides made in Malta in recent years with regards to the percentage of
households unable to keep their homes adequately warm in winter. This has fallen from its peak of
23.4% in 2013, to 6.6% in 2017, and has been lower than the EU average for the last two consecutive
years. This significant decrease is a result of national policies and measures being implemented by the
Maltese Government (outlined below) and complemented by the recent substantial reduction in
energy bills following the significant investments in energy infrastructure.
• The Energy Benefit scheme administered by the Department of Social Security within the
Ministry for the Family, Children’s Rights and Social Solidarity, under which vulnerable
households receive a direct reduction in their utility bills, besides an overall change in Malta’s
national energy policy which also resulted in significant reductions in electricity and water
tariffs for both citizens and businesses.
• The Eco-reduction scheme under which households that consume either: (i) less than 2 000
electricity units per year in a single household; or (ii) less than 1,750 electricity units per person
in a two or more-person household, receive a direct rebate on 15-25% of their electricity bills.
This policy incentivises efficiency and lower consumption, while also having a positive effect
on the bills of low-income households who fall within the consumption limit.
• The provision of professional advice, free-of-charge, by the Energy and Water Agency to
vulnerable and low-income households on energy efficient appliances and behaviour.
• Financial schemes aimed at reducing energy and water consumption in low-
income/vulnerable households through the replacement of old and inefficient appliances, the
result of collaboration between the Energy and Water Agency and the LEAP centres within the
Foundation for Social Welfare Services.
In line with the requirements of the revised Energy Efficiency Directive, the Governance Regulation
and the Electricity Market Directive, efforts in addressing vulnerable and energy poor households will
0.0
5.0
10.0
15.0
20.0
25.0
2010 2011 2012 2013 2014 2015 2016 2017
%
EU Malta
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be continued through policies developed in conjunction with the Ministry responsible for Social
Services.
The energy efficiency schemes and grants addressing this sector of society will continue and will be
adapted to increase their effectiveness. In recent years, Malta allocated an annual budget of
approximately €200,000 to support schemes for vulnerable households under which old appliances
are replaced by new, more efficient units. Furthermore, plans are being developed to also extend
these schemes to include elderly citizens that could also be considered as vulnerable persons.
Moreover, the Energy and Water Agency will continue working with Agencies such as LEAP
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to reach
out to vulnerable communities through the Home Support scheme. In this scheme the Agency will be
offering services such as households visits where an officer from the Agency will explain the concept
of energy and water savings at the household level.
3.5 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS
Policies and measures related to the elements set out in 2.5
Under the Governance Regulation, Member States are required to set out national objectives and
funding targets under the Research and Innovation Dimension for the upcoming ten-year period.
Malta’s National Strategy for R&I pertaining to this period is expected to be published by the end of
2020 by the Malta Council for Science and Technology (MCST), the official government body
responsible for national R&I. This Strategy is set to retain the Smart Specialisation approach at its
core,
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in which thematic areas for future R&I investment are determined through a bottom-up
approach after consultations with stakeholders who define R&I priority areas according to their
judgement of the country’s current and future economic specialisation; this is defined as the
Entrepreneurial Discovery Process (EDP). The adoption of the Smart Specialisation approach and its
continuation post-2020 is a conditionality for Member States to access the R&I portion of European
Structural and Investment Funds (ESIF). As the bottom-up consultations of the EDP are still ongoing,
the inclusion or otherwise of energy and low-carbon technologies in Malta’s upcoming National
Strategy for R&I was unclear during the time of development of the NECP.
In light of the above it was determined and agreed between the Parliamentary Secretariat for Financial
Services, Digital Economy and Innovation and the Ministry for Energy and Water Management that a
sector-specific strategy for R&I in energy and water will be developed by the Energy and Water Agency
to take full advantage of the value-added and cross-cutting benefits of such targeted approach. The
development of the National Strategy for Research and Innovation in Energy and Water (2021-2030)
was thus concurrent with the finalisation of the NECP, enabling alignment between research
objectives and national policy, and allowing for exploitation of synergies between the two policy
documents. The beginning of 2019 saw the start of engagement with experts, academia, and public
and private institutions, as well as the preliminary collection of data for an initial stock-taking exercise
on the current level of R&I in energy and water. It is planned that this Strategy document will be
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Anti-poverty and social exclusion centres.
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The Smart Specialisation Strategy.
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published for public consultation before the NECP is submitted, with a view to its finalisation and the
start of its implementation in early 2020.
To achieve the objectives set out in the Draft National Strategy for R&I in Energy and Water, the draft
document proposes the establishment of Platform-RINEW (Research and INnovation in Energy and
Water). This is envisaged to be the primary tool to coordinate the implementation of the National
Strategy for R&I in Energy and Water, and thus to achieve the high-level objectives outlined in Section
2.5.(i). Platform-RINEW will bring together government, academia, industry and the commercial
sector within a structure that will enable multi-level coordination and cooperation, as well as
streamline and effectively allocate resources for R&I in energy and water. The frequent exchange of
information between these different bodies of actors is also considered to be imperative in ensuring
the effectiveness of support measures and maintain the momentum of R&I at each stage, from
defining support schemes to conducting R&I activities and the integration of successful outcomes
within government and businesses alike. It is envisaged that national financing measures specific to
the fields of energy and low-carbon technologies (as well as water) will be developed and issued by
Platform-RINEW. These are outlined in Section 3.5.(iii).
[If applicable] Cooperation with other Member States in this area
So far, no coordination or cooperation with other Member States was carried out during the
development of the National Strategy for R&I in Energy and Water 2021-2030. This does not exclude
the possibility of future collaboration with other Member States during the upcoming decade on the
development of policies and measures to support R&I in energy and low-carbon technologies,
particularly under Platform-RINEW.
In terms of cooperation with other Member States on R&I projects, it is possible that the
establishment of a specific fund to support R&I in energy and low-carbon technologies (and water)
may, indirectly, have a positive impact on the participation of Maltese researchers in international
projects. National financing may facilitate the retention of experienced members of research teams,
increasing the domestic capacity and resources to apply for international projects. International
collaboration, particularly with other EU Member States, has the potential to unlock additional
innovation capacity through leveraging greater pools of funding and talent and providing an avenue
for international best-practice sharing. Furthermore, support disbursed through national funding
could act as an essential springboard for research teams to apply for the larger volumes of support
required at higher TRL levels which are available through collaborative projects with other Member
States.
109
[If applicable] Financing measures in this area at national level, including EU
support and use of EU funds
The current support framework (2014-2020) for domestic R&I, both at the national and EU level,
appears to be largely geared towards experimental development
69
and commercialisation, with
limitted funding available for research at lower TRLs
70
. At the time of drafting of the National Strategy
for R&I in Energy and Water, there was minimal visibility of the upcoming R&I landscape at the
national level as MCST’s National Strategy for R&I was still under development. Whilst direct EU funds
such as those under Horizon Europe are expected to play an important part in funding future R&I in
Malta, access to and use of European Structural and Investment Funds, is entirely dependent on the
inclusion of this field in Malta’s Smart Specialisation Strategy under the MCST’s National Strategy for
R&I for the post-2020 period. This is an essential consideration given that EU funds represent the most
significant resource for R&I undertaken in Malta.
In view of existing and upcoming EU-level instruments supporting R&I at the higher TRLs, such as the
European Innovation Council and the Innovation Fund, the draft National Strategy for R&I in Energy
and Water (2021-2030) foresees the prioritisation of financial support for R&I from fundamental
research to experimental design (TRL 2-6). In this manner, this Strategy seeks to avoid overlap of
resources and instead address existing gaps in the R&I support landscape. The limited support
available for research at these levels has been emphasised by local stakeholders and noted by the JRC
Policy Support Facility (2019). It is planned
71
that a national fund specifically to support R&I in the
fields of energy and water will be established, envisaged to function through two distinct mechanisms
(similar to the set-up of Horizon 2020
72
):
1. Calls for bottom-up proposals relating to the Priority Areas outlined in the Strategy; and
2. Calls for proposals to structured research questions which relate to the Priority Areas.
EUR 500,000 was allocated to the implementation of the National Strategy for R&I in Energy and
Water under the Maltese Government’s 2020 Budget.
69
Experimental development is defined, in line with the definition used by the NSO, as systematic work, drawing on
knowledge gained from research and practical experience and producing additional knowledge, which is directed to
producing new products or processes or to improving existing products or processes.
70
Technology Readiness Levels (TRLs) is a method for estimating the maturity of technologies based on a scale from 1 to 9,
that is, from basic scientific research to actual application of the technology.
71
At this draft, pre-consultation phase of the National Strategy for R&I in Energy and Water.
72
This is one of the proposals received from academics during consultation sessions.
110
4 CURRENT SITUATION AND PROJECTIONS WITH EXISTING POLICIES
AND MEASURES
4.1 PROJECTED EVOLUTION OF MAIN EXOGENOUS FACTORS INFLUENCING ENERGY
SYSTEM AND GHG EMISSION DEVELOPMENTS
Macroeconomic forecasts (GDP and population growth)
Malta has developed its own methodology and set of assumptions to forecast the macroeconomic
indicators as part of the analytical basis of the NECP. These indicators consist of population figures,
Gross Domestic Product, sectoral Gross Value Added, household size, number of households and
disposable income. This set of national indicators was developed by external consultants and
endorsed by the Economic Policy Department within the Ministry for Finance,
73
and were consistently
used by the various Ministries in all modelling exercises related to the development of the NECP. The
same set of macroeconomic parameters feed into both the WEM and WPM scenarios.
Malta’s current rise in population amounting to approximately 2% annually can be attributed to rapid
economic expansion and associated increase in demand for labour, leading to high net inwards
migration. Table 8 below presents projected population figures in 5-year periods until 2040. The
projection is based on data published by the National Statistics Office (NSO) and the Ageing population
report, with adjustments for net migration and natural increase in population. Although an
assumption is made regarding the decreasing growth in population which drops down to 0.6% in 2030,
it is expected that Malta’s population will reach 554,822 in number by 2030. This naturally translates
into an increase in the number of households during the projected period. The source for historical
data for household size is Eurostat on the basis of the EU-SILC Survey (Survey for Income and Living
Conditions) while the forecasted data is based on the EU Reference Scenario
74
for 2016 published by
the European Commission. The increased population will inevitably have a major impact on the energy
system and future energy demand.
Table 8 - Projected total population and number of households as five-year averages.
5-year period
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Total population
478,809
519,286
547,083
562,704
571,232
Number of
households
180,003
192,328
210,416
216,425
219,705
Table 9 presents projected GDP growth rates until 2040. An assumption is made that the current trend
of high annual economic growth will peak in 2017 at 6.6%, and will start to slow down and stabilize in
the future, reaching 3.5% by 2030. Table 10 presents the projected evolution of GDP per capita. The
outcome of GDP and population projections reported above leads to an increase in GDP per capita
from over 20,000 EUR/p.c in 2017 to almost 30,000 EUR/p.c. by 2030.
73
The classification of GVA projections in the sectors required for the NECP (i.e. agriculture & fishing, industry, and services) was carried out
by external consultants using autogressive models where required.
74
EU Reference Scenario 2016: Energy, Transport and GHG Emissions - Trends to 2050.
111
Table 9 - Projected average GDP growth in five-year periods, %.
5-year period
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Average GDP growth
5.63%
4.2%
3.70%
3.11%
2.32%
Table 10 - Projections of GDP per capita, EUR 2016 prices.
5-year period
2016-2020
2021-2025
2026-2030
2031-2035
2036-2040
Average GDP per capita
21,190
24,554
28,209
31,961
35,318
Sectorial changes expected to impact the energy system and GHG emissions
Residential Sector
The main driver of consumption in the residential sector is the growing population, reflected by a
higher number of households. The average energy consumption by households is expected to increase
by 10% between 2016 and 2030
75
, while a 25% increase is projected in the number of dwellings. The
increasing disposable income per household is expected to manifest as further penetration and use of
certain devices, such as white appliances and air-to-air heat pumps, creating a general increase in
electricity demand on a per household basis. A gradual electrification of space heating and cooking is
also projected, adding to the electricity demand for these end-uses. Indeed, residential consumption
of electricity is expected to grow at a faster pace than that for fuels, although given the lack of district
heating and cooling networks, LPG use for space heating and cooking is projected to continue to
constitute a substantial portion of non-transport fuels (26% in 2016 and 24% in 2030).
Non-Residential Sector
The gross value added (GVA) generated in Malta in 2017 stood at €9.7 billion, increasing by an average
annual rate of 10% over a five-year period. Figure 30 illustrates the sectoral distribution of economic
activity in 2017, indicating the dominant role played by the services sector, followed by the public
sector. These two are expected to remain the most significant sectors in generating GVA, increasing
slightly from constituting a combined 86% of GVA in 2017 to 87% in 2030 and 89% in 2040. Total GVA
is projected to grow in this period, reaching €29.6 billion by 2040.
75
2016 is used as the reference year in this case as 2017 was a year of extremes in temperature, resulting in higher than
expected energy consumption. Given that energy consumption was projected assuming average climatic conditions,
comparison to 2017 data could not be made.
112
Figure 30 - GVA distribution in 2017, %.
A significant expansion in the economic activity of services and the public sector is thus expected,
based on the projected growth in GVA between 2017 and 2040 and with these two sectors retaining
their predominant role in GVA generation. This growth in activity will likely lead to an expansion in
floor area utilised by such economic activities, as this will be required to support new and enlarged
businesses. This additional floor space will also be required to accommodate: (i) the number of
employees within these sectors, expected to double between 2017 and 2040; (ii) additional bed
spaces in the health care sector, required to cater for an increased population; and (iii) additional bed
spaces in elderly care facilities, owing to the proportion of the population aged over 75 growing from
7% in 2017 to 12% by 2040. Based on this assumption of projected economic growth creating an
associated growth in the physical terms, the energy consumption required to provide and support
such activities is necessarily expected to increase.
Demographic and employment trends were estimated based on trends in age groups established by
Eurostat projections, the expected labour participation rate
76
, and recent trends in employment by
economic activity type. They are depicted in Figure 31.
76
Figures are based on policy note issued by the Central Bank of Malta in April 2019 entitled "A cohort approach to project the labour
participation rate in Malta."
Agriculture
1.1%
Construction
3.7%
Public Sector
17.0%
Services
68.9%
Industry
9.3%
113
Figure 31 - Projected demographic trends.
In 2017, approximately 59% of the gainfully employed in the public and services sectors worked in
office-based jobs or educational institutions; this is projected to increase to 64% and 66% by 2030 and
2040, respectively. Given the particular energy consumption profile of such activities, predominanly
electricity for space heating and cooling and ICT equipment, electricity demand for such end-uses is
expected to create additional load on the electricity grid. Expected investments in data centres housed
locally will also add to the demand on the electricity grid, constituting approximately 5% of final
electricity consumption by 2030.
Hospitality, while contributing to 7% of the services sector GVA, is a significant consumer of both
electricity and fuels (31% of energy consumption in the services sector in 2017) and, based on the
projected continued growth in tourist arrivals, this sectoral consumption is expected to increase
further during the next decade, although at a slightly slower pace than offices and educational
institutions. In 2030, hospitality is projected to contribute to 6% of the sectoral GVA and be
responsible for 28% of the sectoral energy consumption. The health care sector, incorporating
hospitals, medical institutions and elderly care facilities, is also a heavy consumer of both electricity
and fuels. Thus, the projected increase in these services is expected to create an associated growth in
electricity and fuel consumption.
The industrial sector contributed towards 9% of the total GVA in 2017 and, on average, is expected to
keep the share around 8% over the time horizon until 2040. The physical output from the
manufacturing sector is projected to increase in line with results from pan-European models and
national projections and the new opportunities expected to arise within this sector, such as the
Medical Cannabis Industry which is estimated to be worth €0.3 billion by 2028.
Water supply, sewage and waste management in Malta is closely linked with the energy system due
to the country’s dependency on reverse osmosis for desalinisation. Energy is also required for
wastewater treatment, pumping and distribution. The overall demand for potable water is expected
to increase, along with the volume of wastewater requiring treatment; however, the trend of increase
in electricity demand for these end-uses shows decoupling from both population and economic
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2017 2020 2025 2030 2035 2040
Projected Demographics
Other Age 4 - 14 Age 15 - 64 of which labour supply Age 75 - 100+
114
growth, largely as a result of investments in the sector and policies/campaigns to increase resource
management efficiency.
Transport Sector
The number of road vehicles is projected to continue to increase as a result of population growth and
sustained economic development (Figure 32). That being said, the average fuel consumption and
emissions per vehicle is projected to decrease slowly at least until 2030, as manufacturers respond to
recent EU Regulations which set emission reduction targets on the fleet average of vehicle
manufacturers. Meeting such targets is expected require manufacturers to include an increasing share
of electric cars in their fleet, a trend expected to be reflected in the stock of newly imported vehicles
in Malta. The effect of this development may be somewhat delayed as a signficant portion of newly
licensed vehicles tend to be imported second-hand vehicles (56% in 2017). An increasing number of
electric vehicles is bound to impinge on the average consumption of electricity although the impact
on peaks may be mitigated through effective demand management. In this context, an advantageous
night-time electricity tariff, applicable to EV charging, is being introduced as from 2020.
Figure 32 The projected vehicle fleet profile by type of vehicle (fuel source not indicated), stock.
The projected increase in tourist arrivals is closely linked to the expected consumption of the aviation
sector. This, along with increasing disposable income, is also projected to lead to growth in inland
navigation, particularly the fuel consumption by leisure boats. These are two sectors which are
considered difficult to decarbonise owning to current technological limitations and Malta’s particular
island-state context. Non-road transport is also expected to register an increase in energy
consumption, albeit at a slower rate than road transport.
Global energy trends, international fossil fuel prices, EU ETS carbon price
Projected natural gas prices provided by ENTSO-G were used in modelling exercises for the
development of the WEM and WPM scenarios of Malta’s NECP, while those provided by the European
Commission were used in sensitivity analyses. ENTSO-G prices were selected for the NECP WEM and
WPM scenarios as these are considered as better representative of specific regional gas prices.
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2017 2020 2025 2030 2035 2040
Vehicle Fleet Profile
Passenger cars Light commercial vehicles
Heavy commercial vehicles & Freight MC and Quad&ATV
115
Projections provided by the Commission for EU ETS carbon price were used. These prices are shown
in Table 11 .
Table 11 Natural gas and carbon price (EU ETS) projections, EUR (2016)/MWh
and EUR (2016)/t CO
2
.
2020
2025
2030
2035
2040
Natural gas
19.73
25.06
28.22
27.79
27.53
Carbon price
15.52
23.28
34.66
43.45
51.73
Technology cost developments
The primary technology cost assumptions used in the development of Malta’s WEM and WPM
scenarios for the NECP are presented in this section.
Solar PV
Future cost assumptions for small-scale residential solar photovoltaics
77
are based on the costs for
small-scale rooftop solar PV set out in the ASSET (Advanced System Studies for Energy Transition)
study on Technology pathways in decarbonisation scenarios, published in July 2018.
78
Overnight
investment costs and annual fixed operation and maintenance costs reported in EUR/kW are
presented in the third row of Table 12 for 2020, 2030, 2040 and 2050. In addition, a one-time €50
connection fee was included in the overnight capital costs. The cost of the inverter (EUR/kW), which
is assumed to be replaced in year 11, was calculated based on historical data of inverter costs and
projected based on trends in overnight costs outlined in Table 13. The technical lifetime of solar PV
technology was assumed to be 20 years.
For non-residential PV systems, the overnight investment costs and fixed annual operation and
maintenance costs for solar PV with a high potential were selected from the ASSET study. However,
given the variance between local (~€ 1000 /kW in 2017) and projected EU capital costs (€ 700/kW in
2020), it was concluded that the ASSET study costs had to be complemented by other sources in order
to accurately project the CAPEX of non-residential PV systems in Malta. Furthermore, capital costs in
the ASSET database appear to exclude grid connection costs. In Malta, these costs are borne by the
PV developer and were thus factored into national estimates of the CAPEX of commercial PV systems.
However, grid connection costs are not fixed for systems with a capacity above 30 MW but are
dependent on the particularities of the installation site; these costs can be relatively high, running into
the hundreds of thousands depending on the site and the size of the installation.
The ASSET study projected costs based on average prices of solar PV in Europe which have, in recent
years, been driven down significantly following the introduction of auctions to support utility-scale PV
systems and other renewable technologies around Europe. Given that the average size of non-
residential PV system in Malta is 12 kWp, ASSET prices are not reflective of local costs. Therefore, for
non-residential PV systems, it was assumed that the ASSET costs did not adequately account for the
Balance of Systems components. These were factored into the total PV system costs based on
projections published by Fraunhofer ISE (2015) on behalf of Agora Energierwende
79
. These are
77
The present average size of residential PV systems is 3kWp.
78
https://ec.europa.eu/energy/sites/ener/files/documents/2018_06_27_technology_pathways_-_finalreportmain2.pdf
79
Fraunhofer ISE (2015): Current and Future Cost of Photovoltaics. Long-term Scenarios for <arket Development, System
Prices and LCOE of Utility-Scale PV Systems. Study on behalf of Agora Energiewende.
116
outlined in Table 12. As the report uses 2014 as its base year, it is likely that the recent price evolution
of PV systems, as a result of the increase in utility-scale PV, was not captured and therefore the costs
are more reflective of small-scale PV systems prevalent in Malta.
Table 12 Solar PV technology cost assumptions, EUR 2013/kW excluding taxes (Source: Technology pathways
in decarbonisation scenarios, 2018).
Investment costs
(EUR/kW)
Fixed annual O&M costs
(EUR/kW)
Lifetime
2020
2030
2040
2050
2020
2030
2040
2050
Years
High potential
700
645
477
431
13
12.2
11.5
10.8
20
Small-scale
rooftop
1435
930
745
610
24
17
15
13
20
Table 13 Cost reduction scenario, EUR 2014/kW excluding taxes (Source: Fraunhofer ISE, 2015).
Cost reduction scenario (EUR (2014=100)/kWp)
2014
2050 (before
efficiency effect)
2050 (incl.
efficiency effect)
Installation
50
30-45
13-28
Mounting Structure
75
38-60
16-38
DC Cabling
50
30-45
20-32
Grid Connection
60
24-36
24-36
Infrastructure
40
28-36
16-26
Other BoS costs
60
39-56
29-46
Battery Systems
Energy storage is becoming ever more essential for the integration of higher shares of intermittent
RES. Traditionally, utility scale storage was restricted to pumped hydro, but with developments in
battery storage, new solutions are becoming available. These can take the form of centralized,
distributed or hybrid storage solutions. In light of this, the Energy and Water Agency commissioned
the Institute for Sustainable Energy at the University of Malta to carry out a high-level assessment of
battery storage solutions based on prevalent technologies. The assessment delved into their financial
feasibility, local availability and potential business models within the local context. The study showed
that there are already a number of domestic suppliers of lithium-ion batteries
80
with a typical lifetime
of 10 years and an average of 6000 cycles, but their costs are rather steep with prices varying between
€1000 – 1500/kWh. The conclusions of this assessment are being reviewed in view of future support
schemes which also earmark EU funding opportunities.
80
Certain local suppliers also stock lead-acid batteries but this study focused primarily on lithium-ion batteries.
117
Floating Offshore Wind
Given that the geospatial properties of the Maltese islands preclude the installation of onshore or
fixed-foundation offshore wind turbines, a high-level review of projected cost developments of
floating offshore wind turbines was performed.
The potential of floating offshore wind technology was assessed for the period 2021-2030. However,
estimating the total installation costs for this innovative technology is difficult as available data is
limited and few such projects have been implemented to date. Indeed, no cost assumptions were
available from the ASSET study. In this regard, capital costs for floating offshore technology estimated
by a study which explored the potential for floating offshore wind farms in the Mediterranean
81
were
used as a base to calculate the total installation costs. These are presented in Table 14 taken from the
study by Zountouridou et al. (2015).
It must be noted that there is a high degree of uncertainty associated with the deployment of new
technologies. The world’s first commercial windfarm using floating wind turbines, Hywind Scotland,
was installed off the coast of Peterhead in Scotland in July 2017, 25m from the shore at a depth of 95-
120m. The CAPEX for this project was €7.6 million per MW, thus significantly higher than that
suggested in a review by Zountouridou et al. (2015) indicating the high costs associated with the
deployment of new energy technologies.
Table 14 - Low and high capital cost estimation, EUR/kW (Source: Zountouridou et al., 2015).
Capital cost estimation (€/kW)
Low
High
Fixed-bottom technology
2600
4200
Floating technology
3200
4550
Other Technologies
In calculating the projected investment needs for technologies (outlined in section 5.3), a number of
assumptions were adopted regarding purchasing costs, average technical lifetime, and, in some cases,
annual average load factors. These are presented in Table 15 and Table 16. The assumed technology
costs are generally in line with the database provided by the European Commission although, when
available, a number of adjustments were made for specific technologies (such as heat pumps) to
better capture costs on the Maltese market. These costs assumptions also consider a certain level of
efficiency uptake, in line with the projected WEM and WPM scenarios described in the NECP.
81
Zountouridou, E.I., Kiokes, G.C., Chakalis, S., Georgilakis, P.S. and Hatziargyriou, N.D., 2015. Offshore floating wind parks in the deep waters
of Mediterranean Sea. Renewable and Sustainable Energy Reviews, 51, pp.433-448.
118
Table 15 Technology assumptions for technologies in the residential and commercial sectors.
Sector
Energy service
Technology
Investment
cost
Technical
life
€
2016
/kW
* €
2016
/unit
years
Residential
Air conditioning
Electric A/C
240
23
Space heating
Electric heat pump
240
23
Electric heater
203
20
LPG
156
20
Biomass
232
20
Water heating
Solar thermal
1650 *
20
Heat pump
2500 *
20
Electric
253 *
20
Cooking
Electric
387 *
20
LPG
387 *
20
Appliances
Refrigerators and freezers
1126 *
12
Washing machine
524 *
12
Clothes dryer
470 *
12
Dishwasher
402 *
12
Services
Air conditioning
Electric A/C (conventional)
227
23
Electric A/C (high efficiency)
269
23
Space heating
Electric heat pump (conventional)
151
23
Electric heat pump (high efficiency)
186
23
Diesel (conventional)
89
20
Diesel (high efficiency)
137
20
Water heating
Electric (conventional)
139
20
Electric (high efficiency)
148
20
Diesel (conventional)
89
20
Diesel (high efficiency)
119
20
Cooking
Cooker (conventional)
397
20
Cooker (heat pump)
462
20
Others
Cooling/refrigeration
732
20
Processing
1,523
30
Industry
Electric uses
Motors (conventional)
513
30
Motors (high efficiency)
732
30
Machinery (conventional)
1,312
30
Machinery (high efficiency)
1,890
30
Drying & cooling (conventional)
1,032
30
Drying & cooling (high efficiency)
2,127
30
Heat processing (conventional)
416
30
Heat processing (high efficiency)
672
30
Processing &
generation
Processing (conventional)
1,912
30
Processing (high efficiency)
2,964
30
Diesel generator
243
30
Other uses
Space heating (conventional)
105
30
Space heating (high efficiency)
137
30
119
Water heating (conventional)
95
30
Water heating (high efficiency)
119
30
Cooling/refrigeration (conventional)
1,079
30
Cooling/refrigeration (high
efficiency)
2,450
30
Table 16 Technology assumptions for categories of vehicles.
Mode
Type
Unit
Investment cost
New
Second hand
Passenger car
Petrol
€
2016
/vehicle
19,462
11,677
Diesel
€
2016
/vehicle
22,752
13,651
Electric
€
2016
/vehicle
25,039
15,023
LCV
Petrol
€
2016
/vehicle
17,361
10,416
Diesel
€
2016
/vehicle
21,701
13,020
Electric
€
2016
/vehicle
22,203
13,322
HCV
<7.5 t
€
2016
/vehicle
64,093
38,456
>7.5 t
€
2016
/vehicle
106,822
64,093
Electric
€
2016
/vehicle
86,005
51,603
Motorcycle
<125 m
3
€
2016
/vehicle
2,515
1,509
>125 m
3
€
2016
/vehicle
6,014
3,608
Bus
Diesel
€
2016
/vehicle
64,093
38,456
120
4.2 DIMENSION DECARBONISATION
4.2.1 GHG emissions and removals
Trends in current GHG emissions and removals in the EU ETS, Effort Sharing
Regulation and LULUCF sectors and different energy sectors
Malta’s GHG emission trends, in terms of the overall profile of total national emissions (ETS and non-
ETS) over the time-series 1990 to 2017 (Figure 33 and Table 17) show an increase in total emissions
up until 2012, followed by a rapid decrease over a period of just four years, with emissions in 2017
being even lower than the emissions in 1990.
Figure 33 - Total GHG emission trends, 1990-2017
The peak of GHG emissions was recorded in 2012, where such emissions were 51% higher than in
1990. In contrast, the lowest level of emissions was recorded in 2016, wherein total national GHG
emissions were around 10% lower than in 1990 (Figure 34). Between 2012 and 2017, there is a
difference of more than 62 percentage points when both years are compared to 1990 emissions. The
2017 total national emissions are almost 41% lower than 2012 emissions
82
. The drop in the total
emissions registered from 2012 onwards relates to the energy sector, with the onset of the electricity
interconnection with Sicily and the subsequent shift from heavy fuel oil to natural gas in local power
generation.
82
Analysis of trends is based on total emissions with LULUCF. Net total emissions, i.e. total emission with LULUCF are higher
than total emissions without LULUCF as the sector LULUCF reports net positive emissions.
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
3500.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total CO2 equivalent emissions withoutLULUCF Total CO2 equivalent emissions with LULUCF
121
Table 17- Total GHG emissions, with and without LULUCF
Total emissions
- without LULUCF
Total emissions
- with LULUCF
Gg CO
2
eq.
1990
2103.18
2106.14
2005
2909.62
2911.33
2010
2909.94
2911.94
2011
2997.46
2999.70
2012
3187.40
3189.86
2013
2860.04
2862.74
2014
2874.93
2877.87
2015
2188.16
2191.34
2016
1895.68
1899.10
2017
2151.59
2155.24
Year-to-year changes across the period are presented in Figure 34. Up until 2012, there are sixteen
instances of positive year-to-year changes, i.e. an increase in emissions is recorded from one year to
the next, out of a possible twenty-two. Subsequent to 2012, there are three instances of year-to-year
negative changes (i.e. emissions decrease for one year to the next), with two instances of a year-to-
year increase (2013 to 2014 and 2016 to 2017). The biggest year-to-year change is observed for 2014-
2015, with total emissions in 2015 being more than 23% lower than the previous year. The trend in
positive versus negative year-to year changes and the relative changes observed correlate with the
overall trend for the whole period.
Figure 34 - Annual percentage change in total emissions year-to-year
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Annual % change Yon Y, with LULUCF Annual % change Yon Y, without LULUCF
122
Figure 35 – Annual percentage change of total emissions compared to base year (1990)
Trends in GHG emissions per Capita
Figure 36 describes the correlation between the trend in total national emissions and the trend in
population of the Maltese Islands, in terms of GHG emissions per capita. Population has grown steadily
over the years
83
. As observed for the trend in total emissions, GHG emissions per capita also show a
general increasing trend from 1990 until 2012; this trend is then reversed after 2012, with GHG
emissions per capita increasing, even though population growth continued at a similar rate to previous
years’ growth. Emissions per capita reached their highest levels in 2007, at 7.7 tonnes CO
2
eq. per
capita. The lowest rates of GHG emissions per capita are recorded for 2016 (4.2 tonnes CO
2
eq. per
capita). A slight increase in 2017 (up to 4.5 tonnes CO
2
eq. per capita) was observed and this was due
mainly to an increase in the energy production sector.
One can infer that for the latter years, a certain decoupling between GHG emissions trends and
population trends of the Maltese Islands, or, in other words, that population statistics alone cannot
directly explain the changes in GHG emissions over the whole period under consideration. Indeed, one
could consider that greater demand for major emitting activities in Malta, particularly energy (and
therefore, energy generation) and mobility (i.e. road transport) as population grew, could explain the
increasing emissions at least until 2012, as these activities have been, as will be seen later, the major
contributors to overall emissions in absolute terms. However, targeted measures even in one sector
or category could have a major impact on overall emissions, despite continued population growth,
even more so if that one sector or category has a significant share of total national emissions. This is
the case for the period after 2012, when very substantial emission reductions due to major technical
83
Population data from NSO; population data as at end-of-year.
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
% change Y on 1990, without LULUCF % change Y on 1990, with LULUCF
123
developments in the electricity generation sector, have counteracted any increase that one may have
expected would occur due to continued population growth.
Figure 36 – Trend in emissions per capita compared to population growth trend
Emission trends by gas
Carbon dioxide (CO
2
) emissions contribute the biggest share of total national emissions (ETS and non-
ETS) with the trend mirroring that of total national emissions changes. Between 1990 and 2003 CO
2
accounted for more than 90% of total national GHG emissions, whereas between 2015 and 2017, CO
2
accounted for less than 80% of total emissions (Figure 37).
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
GHG emissions/capita (tonnes CO
2
eq./capita)
Population
GHG emissions/capita
Population National emissions (with LULUCF)
124
Figure 37 - Greenhouse gas emission trends by gas, 1990 – 2017
Compared to base year, net CO
2
emissions were 26.9% lower in 2016. For the same year, CH
4
emissions
were 79.6% higher than 1990 levels while N
2
O emissions were 21.1% lower. No emissions occurred in
1990 for HFCs or were estimated for PFCs.
Table 18
84
- Greenhouse gas emission trends by gas
CO
2
(with
LULUCF)
CH
4
N
2
O
HFCs
PFCs
SF
6
Total
W/O
LULUCF
Total
With
LULUCF
1990
1946.25
105.27
54.61
NO, NE,
IE, NA
NO, NA
0.01
2103.17
2106.13
2005
2598.08
214.22
55.68
41.78
NO, NA
1.56
2909.61
2911.32
2010
2534.34
180.26
50.06
145.49
1.103E-06
1.79
2909.94
2911.94
2011
2613.77
168.63
43.59
169.02
1.103E-06
4.69
2997.46
2999.69
2012
2773.8
169.59
44.91
201.03
1.103E-06
0.54
3187.39
3189.86
2013
2440.88
158.9
43.88
216.32
1.103E-06
2.77
2860.03
2862.74
2014
2429.07
173.86
43.49
230.77
1.103E-06
0.68
2874.92
2877.86
2015
1720.78
181.65
42.26
246.37
1.103E-06
0.28
2188.16
2191.33
2016
1416.77
183.87
41.73
256.58
1.103E-06
0.14
1895.68
1899.09
2017
1612.31
187.49
43.51
310.93
1.103E-06
0.99
2151.58
2155.23
84
Values denoted as ‘0.00’ indicate that emissions have been estimated but the value is of an order of magnitude that cannot
be represented at two decimal places. Please refer to CFR tables for exact emissions data.
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Gg CO
2
eq.
CO2 emissions with net CO2 from LULUCF CH4 emissions with CH4 from LULUCF
N2O emissions without N2O from LULUCF N2O emissions with N2O from LULUCF
HFCs PFCs
SF6
125
The trend in relative share of each gas in total GHG emissions Figure 38 is worth noting. The share of
CO
2
is decreasing, a trend that becomes especially evident in the second half of the time-series. This
is due to two main factors: the trend in CO
2
absolute emissions, especially the decrease maintained
over recent years, and a growth in emissions of HFCs. The latter will be explored in further detail later
on in this section.
Figure 38 - Percentage share by gas of total GHG emissions
Carbon dioxide emissions and removals
As shown in Figure 39, the majority of CO
2
emissions reported by Malta are generated by the energy
sector (2016 share: 99.7%) of total national CO
2
emissions), with very small amounts estimated for
sectors IPPU (0.03%), LULUCF (reporting net emissions, 0.24%) and waste (0.05%). Within the energy
sector, the category Energy Industries had a share of 45% of total national CO
2
emissions while
transport had a share of 39%, in 2017 (Figure 40 - Share of sector/category in total CO2 emissions for
). The increase in emissions seen in 2017 was due to major reliance on local electricity generation as
opposed to purchased electricity through interconnection with mainland Europe.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
CO2 (with LULUCF) CH4 N2O HFCs PFCs SF6 NF3
126
Figure 39 - CO
2
emission trends by sector
Figure 40 - Share of sector/category in total CO
2
emissions for 2017
Methane emissions
The waste and agriculture sectors are two main contributors to total national CH
4
emissions (Figure
41), with the share from the waste sector showing an increase over time. The significant drop between
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Energy IPPU Agriculture LULUCF Waste
Energy industries
44.97%
Manufacturing
industries and
construction
2.10%
Transport
38.97%
Other Energy sectors
13.42%
Industrial processes
and product use
0.29%
Agriculture
0.00%
Land use, land-use
change and forestry
0.23%
Waste
0.03%
CO
2
Energy industries Manufacturing industries and construction
Transport Other Energy sectors
Industrial processes and product use Agriculture
Land use, land-use change and forestry Waste
127
2007 and 2008 resulted from the installation of a landfill gas capture system. In 2017, emissions from
the waste sector accounted for 77% of total national CH
4
emissions, followed by 19% for agriculture
(Figure 42).
Figure 41 - CH
4
emission trend by sector
Figure 42 - Share of sector in total national CH
4
emissions, 2017
0.00
50.00
100.00
150.00
200.00
250.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Methane emissions (Gg CO2 eq.)
Energy IPPU Agriculture LULUCF Waste Total methane
4%
0%
19%
0%
77%
Energy IPPU Agriculture LULUCF Waste
128
Nitrous oxide emissions
Total national N
2
O emissions are dominated by emissions of this GHG from agriculture sector, with
lesser contributions by sectors Waste and Energy and an even smaller contribution of sector IPPU
(Figure 43). The share of Agriculture in total national N
2
O emissions in 2017 was 66.7%, with Waste
and Energy accounting for the biggest part of the remaining (31%) of total national nitrous oxide
emissions between them.
Figure 43 - N
2
O Emission trends by gas, total and by sector
Figure 44 - Share of total national N
2
O emissions, 2017
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Nitrous oxide emissions (Gg CO2 eq.)
Energy IPPU Agriculture LULUCF Waste Total nitrous oxide
Energy
17%
IPPU
2%
Agriculture
67%
LULUCF
0%
Waste
14%
Energy IPPU Agriculture LULUCF Waste
129
Emissions of fluorinated gases
Since 1999, among the Fluorinated (F-) gases, the predominance of HFCs is very evident, and
estimations of emissions of this group of gases show a consistent increase up to the present (Figure
45). Prior to 2000, equipment for refrigeration and cooling predominantly used CFCs. Consequently,
with the placement of equipment of HFCs on the market emissions of this F-gas increased. The rate of
growth is identified by the gradient of the trend. All emissions of these gases fall within the sector
IPPU. It is worth noting that emissions of HFCs in 2017 accounted for around 99% of total IPPU
emissions.
Figure 45 - F-Gases emission trends by gas: HFCs, PFCs, SF, totals by gas
0
50
100
150
200
250
300
350
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
F-gas emissions (Gg CO2 eq.)
HFCs PFCs SF6
130
Description and interpretation of emission trends by sector
Figure 46 gives an overview of the total emissions (ETS and non-ETS) by sector for the time-series
presented in this submission.
Figure 46 - Share by sector of total GHG emissions
Figure 47 - Annual percentage change compared to 1990, by sector
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
3500.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Emissions (Gg CO
2
eq.)
Energy IPPU Agriculture
LULUCF Waste Total (with LULUCF)
Total (without LULUCF)
-100.00
400.00
900.00
1400.00
1900.00
2400.00
2900.00
3400.00
3900.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
%age change
Energy IPPU Agriculture LULUCF Waste
131
Energy sector emissions
The trend profile for the energy sector can be distinguished by two sub-trends, namely a continued
increase up to 2012, and a subsequent rapid decrease until 2016. The first sub-trend reflects increased
demand for energy, primarily in electricity generation and transport. This is followed by very
substantial, and relatively quick, efficiency gains, in emission terms, in electricity generation over the
more recent years. This albeit a slight increase in emissions from the electricity generation sector due
to the higher share of local generation replacing importation of electricity.
Figure 48 - Emission trends in the energy sector
The very strong influence that the energy sector has always had on national GHG emissions in Malta
has already been noted above. This can be further shown when one compares the relative year-to-
year change in energy emissions and the change from 1990 emissions when compared to the same
assessment for total national GHG emissions.
The majority of emissions from the energy sector can be attributed to CO
2
, with methane and nitrous
oxide emissions together accounting for just above 0.5% of the total energy GHG emissions in 2017.
This state of play hasn’t changed in any substantive manner from 1990.
0.00
500.00
1000.00
1500.00
2000.00
2500.00
3000.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Emissions (Gg CO
2
eq.)
Emission trends for sector Energy: total and by category
Energy Industries Manufacturing Industries & Construction
Transport Commercial/Institutional
Residential Agriculture/Forestry/Fishing
Non-Specified (Military) Energy Total
132
Figure 49 - Annual percentage change in Energy sector emissions year to year
Figure 50 - Annual percentage change in Energy sector emissions compared to base year (1990)
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Year on Year changes in Energy (%)
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
% change from Base year (1990)
133
IPPU sector emissions
The overall profile of IPPU emissions over the 1990-2017 period shows a consistent increase since the
turn of the millennium (Figure 51). The major contributors to HFC emissions are activities under
category 2F1 Refrigeration and Air-Conditioning, which on its own had a share greater than 98% in
2017 of total IPPU GHG emissions.
Figure 51 - Emissions trends by gas within IPPU sector
Agriculture Sector emissions
In general, emissions from the agricultural sector have seen a decrease in emissions over the 1990-
2017 period (Figure 52), with emissions in 2017 being 15% lower than 1990 emission levels. The overall
share of this sector in total national emissions has not fluctuated much during the period, starting at
3.6% in 1990 and being at 3.0% in 2017.
In the agriculture sector, it is worth noting a more balanced sharing of total sector emissions between
the two gases, as opposed to the situation in other sectors (Energy and IPPU), where one GHG has a
dominant position as the major contributor to sectoral total emissions. In this sector, both methane
and nitrous oxide are important contributors, with only a relatively small difference in their respective
share, a situation that has been maintained over the course of the period 1990-2017, with methane
emissions being always somewhat higher (CH4: 55%; N
2
O: 45%; in 2017).
The category with the highest share of estimated emissions in this sector is 3A Enteric Fermentation,
followed by 3D Agricultural Soils and 3B Manure Management.
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
GgCO2 eq
IPPU CO2 IPPU CH4 IPPU N2O IPPU HFC IPPU PFC IPPU SF6
134
Figure 52 - Emission trends by gas within Agriculture sector
Figure 53 - Share by gas in total Agriculture emissions, 2017
LULUCF sector emissions and removals
The LULUCF sector consistently shows the lowest share of total national GHG emissions throughout
the time-series (0.1% in 1990; 0.2% in 2017).
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Emissions (Gg CO
2
eq.)
Emission trends for sector Agriculture: total and by category
Agriculture Total Enteric Fermentation Manure Management Managed Soils
CH4
55%
N2O
45%
CH4 N2O
135
Variations in year-to-year emission estimates seem relatively large (Figure 54); however, this should
be seen in the context of a sector with very small levels of emissions and year-to-year relative
differences can appear to be more significant than they are in absolute terms. Only CO
2
emissions are
reported for this sector.
Figure 54 - Emission trends in LULUCF sector
Waste sector emissions
Before being overtaken by IPPU sector in the later years of the first decade of the millennium, for a
long period of time, the waste sector was the second highest contributor to national GHG emissions
after energy generation. Over that same period, sectoral emissions from waste showed a consistent
increase. In later years, estimated emissions vary substantially, though the general trend is that
emissions since 2008 have always been less than the peak reached in 2007.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
GgCO2eq
136
Figure 55 - Emission trends in Waste sector
The distribution of waste sector emissions between gases sees the predominance of CH
4
as the GHG
with the largest share of sector emissions, by far surpassing the contributions of N
2
O and CO
2
.
Emissions from solid waste management account for the largest share of emissions in this sector.
EU ETS
The European Union has established the largest multi-country (to date covering 28 EU Member States,
with the participation also of Norway, Iceland and Liechtenstein) and multi-sector emissions trading
scheme, covering large, stationary, greenhouse gas-emitting industrial installations (since 2005) and,
as from 2012, aviation activities.
The below figure isolates the ETS emissions as a result of the electricity generated in Malta, from the
total GHG emissions reported and illustrated earlier in this section for the energy sector. For the
purpose of this section, the below does not cover EU ETS for aviation.
0.00
50.00
100.00
150.00
200.00
250.00
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Emissions (Gg CO
2
eq.)
Solid Waste Disposal Biological Treatment of Solid Waste
Incineration and Open Burning of Waste Wastewater Treatment and Discharge
Waste Total
137
Table 19 - Total CO2 emissions vs total electricity generated in Malta by power plants, 2005-2017
Projections of sectorial developments with existing national and EU policies and
measures at least until 2040
The projections reflect the results of a modelling tool developed for the assessment of policies and
measures and the generation of projections, further explained in later sections.
These modelled scenarios are based on specific assumptions regarding framework conditions,
including demographic and economic activity, technological trends, energy costs/prices and similarly
relevant variables, described in Section 4.1. The policies and measures, and combinations thereof,
that have been implemented, or will be implemented, at different points in time are modelled as
exogeneous variables. The model is sub-divided into a number of sector-specific sub-models having
different levels of complexity.
The historic data feeding into the sectoral models to estimate GHG emissions projections is the same
as the reported for submission in 2019, i.e. latest historic year of 2017. Two main policy scenarios have
been projected, namely
(1) the “With Exiting Measures Scenario (WEM)”, which assumes that no further measures are
implemented after the reference or base year (taken as 2017) and,
(2) the “With Planned Measures Scenario (WPM)”, which takes into account currently implemented
and adopted policies and measures as at end 2017, together with other planned policies and measures
committed for implementation in the years thereafter.
0
500000
1000000
1500000
2000000
2500000
3000000
0
500000
1000000
1500000
2000000
2500000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total electrcity geenerated in Malta (MWh)
Total ETS Stat Inst CO
2
emissions (tonnes CO
2
)
Electricity generated in Malta
Total CO2 emissions for electricity generated in Malta by EU ETS plants
138
Energy sector projections
Figure 56 illustrates the total GHG emissions from the energy sectors, including sectors falling under
the EU ETS (i.e. power generation and international aviation) under the WPM scenario. Total GHG
emissions as projected under the WEM scenario are also included. Figure 57 shows GHG emissions of
the energy sector falling under the ESR (excluding power generation and aviation) for the WPM
scenario, as well as the total for the WEM.
Figure 56 - Total GHG emissions from the energy sectors under WPM and total WEM, kt CO
2
eq.
Figure 57 - ESR energy ssector emissions under WPM scenario and total WEM, kt CO
2
eq.
0
500
1,000
1,500
2,000
2,500
3,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
kt CO
2
eq.
Total energy sectors GHG emissions under WPM and total WEM
Power generation Agriculture, Forestry, Fishing
Industry Residential
Services Road Transport
Domestic navigation Aviation
Total Energy (WEM)
0
200
400
600
800
1,000
1,200
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
kt CO
2
eq.
ESR energy sector GHG emissions under WPM scenario and total under WEM, kt
CO2 eq.
Agriculture, Forestry, Fishing Industry
Residential Services
Road Transport Domestic navigation
Total Energy ESR (WEM)
139
Industrial Processes and Product use Projections
The IPPU projections are based on a stock flow approach of f-gases. The GHGs identified as being
emitted by this sector are CO2, HFCs and SF6, as reported in the national inventory under the
categories: Soda Ash Production and Use, Carbide Production, Use of N2O for Anaesthesia and
Consumption of Halocarbons and SF6. Since most of the sectors are relatively minor, projections are
solely based on the refrigeration and air-conditioning sector, which covers more than 95% of the
whole sector.
In view of the climatic conditions experienced in Malta, and the increased purchasing power, the
demand for active cooling in the residential and commercial building stock is on the increase. Whilst
in the development of the national long-term decarbonisation strategy, policies and measures are
being assessed to curb the emissions generated from this sector, namely market-based mechanisms,
at present the trend in projected emissions is on the rise as identified in the figure below illustrating
the ‘With Existing Measures’ (WEM) scenario.
In this iteration of the NECP, the GHG emissions for the IPPU sector under the WPM scenario have not
been modelled, since the fluctuations of the European market and beyond which are set to come into
play in the coming years should result in emission reductions across the board, however the trajectory
of such emissions reductions is difficult to pre-empt at this stage. IPPU emissions are therefore
identical under both WEM and WPM.
Figure 58 - Stock emissions in IPPU
0
50
100
150
200
250
300
350
400
450
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
kt
Stock emissions in IPPU
(With Exiting Measures Scenario)
IPPU
140
Agriculture projections
In agriculture, future GHG emission trends may be influenced both by measures taken to address
directly emissions or measures that indirectly contribute towards decreasing emissions, and by
inherent trends in activity in the sector. In animal husbandry for example, the restructuring of the
sector to conform to animal welfare, food safety, veterinary and waste management requirements,
particularly those arising from EU legislation, will lead directly to a decrease in emissions due to
reduced activity or reduction in emissions from the realization of the requirements already
mentioned.
A model was developed over 2017 to estimate the projections of activity data from which methane
and nitrous oxide emissions from agriculture waste and managed soils are calculated. The activity data
consisted of the number of animal heads including cattle, swine, sheep, goats, horses, poultry and
rabbits, milk production and agriculture land area. The projections are based on a three-year moving
average taking actual data for 2016 as the base year. The various animal heads were subsequently
sub-divided by age group and/or by type, for example cattle was first sub-divided between dairy and
non-dairy and subsequently each division was sub-divided again for cattle aged less than 1 year,
between 1 and 2 years of age and over 2 years of age. This approach allowed for greater precision in
the estimation of emissions from livestock. The model covers projections of GHG emissions over a
period spanning 1990 – 2040. The WPM scenario takes into account the measure relating to the
dewatering of slurries as a management measure to address emissions from manure. In view of the
minor significance of the emissions generated by the agricultural sector, no considerable reductions
are envisaged as the activity within this sector is projected to remain stable over the coming years.
Figure 59 - Agriculture GHG emission projections, WEM and WPM
60.50
61.00
61.50
62.00
62.50
63.00
63.50
64.00
64.50
65.00
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
WPM WEM
141
LULUCF Projections
Malta has developed the Forest reference level (FRL) relevant to Regulation (EU) 2018/841, and the
final FRL value for 2021-2025 is -0.0376ktCO
2
. A similar slightly higher FRL is estimated for 2026-2030
(-0.0479 ktCO
2
). The very marginal nature of the sector is further shown in Figure 60 as projected
under the WEM scenario, where a strong decrease in overall emissions from the sector is projected in
percentage terms but only amounts to less than 1GgCO
2
eq.
Whilst the policy direction in the years to come is to further augment afforestation projects to enhance
the sequestration potential to its maximum, the scale of such projects and the scale of removals would
still be very limited in view of the geographical limitations of ours islands. Hence, LULUCF emissions in
the WPM scenario correspond to those under the WEM.
Figure 60 - Net LULUCF emission totals
Waste Projections
The waste sector will experience a significant reduction in the portion of municipal solid waste going
to landfill, which shall be diverted to either biological or thermal treatment with energy recovery. The
advent of thermal treatment of municipal waste will appear as a net increase in emissions for the year
of application with a gradual but constant decrease in emissions from landfilling being more
accentuated in the later period. This trade-off comes, in alignment with Malta’s compliance to targets
pursuant to waste regulations and land use conflicts which will result in view of the potential extension
to the engineered landfill.
The projection of waste generation is based on the correlation between a relevant driver trend
between 2013 and 2016, relative to the actual trend in waste generation 2013-2016. This correlation
is represented by a constant, which is multiplied by the projected macroeconomic driver, leading to
the projected waste generation for that particular year. This exercise was repeated for all waste
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
GgCO2eq
Net LULUCF
(With Existing Measures Scenario)
142
streams as published in the National Statistics Office waste statistics, with each waste stream
associated with a specific relevant driver.
Following completion of a waste generation scenario, each waste stream was portioned into the
different waste treatment options based on the WEM or WPM scenario. In the WEM scenario, the
capacity of existing options is respected, with the remainder being directed to landfilling. In both
scenarios, it is assumed that landfilling space will not run out at any moment and that capacity of
present plants will be retained all along the period. This means that if any plant included in the WEM
scenario ceases to operate in the timeframe of the projection, a similar plant in terms of technology
and capacity will replace it immediately. The difference between the WEM and WPM scenarios, is due
to shifting of waste streams from one option (e.g. landfilling) to another option higher in the waste
hierarchy (e.g. thermal treatment with energy recovery, anaerobic digestion or recycling). To date the
model does not account for behavioural changes that induce quantitative waste generation changes,
thus waste avoidance is not accounted for at this stage. This is mainly due to the low confidence and
inability to model behavioural change induced by measures included both in the WEM and WPM
scenario.
The below charts illustrate the waste distribution per emitting treatment stream.
Figure 61 - Landfilling profile projections, by scenario
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
Tonnes
Year
WEM WPM
143
Figure 62 – Thermal treatment profile projections
Figure 63 - Biological treatment, by scenario
Following this distribution, the waste quantities were converted into emissions through inventory
models based on the IPCC 2006 guidelines. The methodologies are described in the National GHG
inventory 2018 submission.
85
The resultant emissions are described in the figure below which identifies a peak with the
commissioning of the waste-to-energy facility followed by the levelling off of emissions slowly in the
years thereafter as landfilling practices decrease in favour of waste treatment options which are
higher in the waste hierarchy.
85
http://cdr.eionet.europa.eu/mt/eu/mmr/art07_inventory/ghg_inventory/envws9gua/Malta_NIR_1990-
2016_Apr_2018_submission_Version2_final.pdf
0.00
20000.00
40000.00
60000.00
80000.00
100000.00
120000.00
140000.00
WEM WPM
0.00
20000.00
40000.00
60000.00
80000.00
100000.00
120000.00
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Tonnes
Year
WEM WPM
144
Figure 64 - Emissions projections in Waste sector
4.2.2 Renewable energy
Current share of renewable energy in gross final energy consumption and in
different sectors (H&C, electricity, transport) as well as per technology in sectors
Table 20 below shows the share of renewable energy in total gross final energy consumption, as well
as in the sectors of heating and cooling, electricity and transport. As of 2017, the share of renewable
energy in relation to gross final energy consumption is estimated to have reached 7.3%, increasing
from 6.4% reached in the previous year. As shown in table, the highest relative share of renewable
energy was achieved in the heating and cooling sector.
Table 20 Share of renewable energy in gross final energy consumption, total and per sector 2010 - 2017
%
2010
2011
2012
2013
2014
2015
2016
2017
Heating & Cooling
86
7.1%
12.2
%
10.9
%
14.5
%
14.9
%
15.5
%
17.2
%
19.7
%
Electricity
0.0%
0.5%
1.1%
1.6%
3.3%
4.3%
5.7%
6.8%
Transport
0.6%
2.2%
3.5%
3.8%
5.2%
5.3%
5.7%
7.2%
Overall RES share
1.1%
1.8%
2.8%
3.7%
4.7%
5.3%
6.4%
7.3%
Total final energy consumption of RES in Malta in 2017 amounted to 454 GWh. This portrays a
substantial annual increase from the 383 GWh registered in 2016, which can be attributed primarily
to the continued deployment of solar PVs and greater use of biofuels on the Maltese market. This is
to be compared to a mere 6 GWh of RES consumption registered in 2005, when only a handful of solar
water heating systems were practically the only RES technology in Malta.
86
Excludes ambient heat from heat pumps in 2010-2012.
100.00
150.00
200.00
250.00
300.00
350.00
400.00
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
GgCO2
Year
WEM WPM
145
Government’s current policy in the area of RES is to fully exploit potential of effective indigenous
renewable energy sources in order to achieve Malta’s 2020 RES target of 10% share in gross final
consumption of energy. PV technology was demonstrated to be the most robust and fastest-growing
of all technologies, owing much to the characteristics of Malta in relation to solar intensity but also to
the successful history of public and Government initiatives to promote the technology. Yield of PV
systems in Malta is among the highest in Europe. There was a sharp increase in the uptake of PV
between 2010 and 2017, with the total cumulative installed capacity at the end of 2017 standing at
just over 112 MWp. Successful PV deployment has happened largely due to national incentives offered
through various schemes, including ERDF co-financed grants and attractive feed-in-tariffs.
Figure 65 below provides a visualisation of the share of renewables in final energy consumption by
technology in 2017. The largest contribution of renewable energy is provided by solar PVs,
contributing to around 36% of renewable energy in 2017, followed by heat pumps with 25%, the use
of biofuels in the transport sector at 19% and solar water heaters, contributing with 13%. While there
has been a continued increase in the use of heat pumps for heating and cooling, and biofuels used in
the transport sector, the installation of new solar water heaters in recent years has slowed down.
Other sources of RES include electricity and heat produced by waste-to-energy plants, biomass
imports and the electricity consumed by electric and plug-in-hybrid electric vehicles.
Figure 65 - Share of RES technologies in consumption in 2017
Share of RES in the heating and cooling sector
Malta does not have any district heating networks as past studies indicated and confirmed that district
heating networks would not be cost-effective. In 2017, the consumption of RES in the heating and
cooling sector is estimated to have reached 195 GWh, which represents an increase from 175 GWh in
the previous year. In comparison, the consumption of RES in H&C in 2010 only accounted for 45
GWh
87
. Renewable energy share in the heating and cooling sector can be attributed primarily to the
87
Ambient heat from air-to-air heat pumps is estimated to have provided 42 GWh, making the total figure for RES_H&C 87 GWh as opposed
to 45 GWh. However, in the published energy balances and energy statistics, ambient heat from heat-pumps is not calculated before 2013,
that is, prior to the publication of Commission Decision 2013/114/EU which established the guidelines for Member States on calculating
renewable energy from heat pumps.
146
use of air-to-air heat pumps and solar water heaters, with biomass imports, heat produced from
Waste-to-Energy plants and bioliquids used for spatial heating and industrial processes in the
industrial sector accounting for the balance.
Figure 66 below shows the development of renewable energy consumption in the heating and cooling
sector between 2010 and 2017. The figure provides a visualisation of the continued increase of RES
technology penetration in the heating and cooling sector, driven by heat pumps and solar water
heaters. Renewable ambient cooling using air-to-air heat pumps is not included.
Figure 66 - Renewable energy consumption in H&C, 2010-2017, GWh
Due to its typical warm Mediterranean climate, the major application for heat pumps in Malta has
traditionally been for ambient cooling. This has resulted in buildings being fitted with reversible air-
to-air units. However, also in response to lower electricity tariffs, the utilisation of heat pumps
technology for heating purposes increased, supplementing or, in some cases, replacing the use of
either LPG heaters or electric filament heaters. In 2017, there were almost 300,000 air conditioners
employing heat pump technology (split-units) installed in Malta, with 204,500 of these installed within
the residential sector. Their utilisation in SMEs and large enterprises for both heating and cooling has
also been on the rise.
Solar Water Heaters (SWH) are favoured by the high solar intensity prevalent in Malta and they
eliminate a good percentage of energy consumption otherwise going for water heating in the
residential and to a lesser extent the commercial sector. However, their use is limited in summer when
ambient temperature is high and hot water demand is low even though their yield is at its maximum.
Since 2005, a number of grant schemes have been provided to promote the use of solar water heaters
for households, increasing RES-H generation by an average of 3.8 GWh/year. Nevertheless, a
downward trend in recent years is evident, as the number of SWH installations including the number
of grant requests fell well below the peak reached in 2009. This negative trend can be attributed
mainly to the consumer shift towards PV systems, developments in the construction and renovation
0
20
40
60
80
100
120
140
160
180
200
2010 2011 2012 2013 2014 2015 2016 2017
GWh
RES consumption in H&C, 2010-2017, GWh
Heat pumps SWH WtE (heat) Biomass imports Bioliquids (industry)
147
of buildings linked with limited roof accessibility and saturation of the SWH domestic market at current
levels of support.
Biomass imports comprised primarily of wood charcoal, fuel wood and wood pellets, which are used
for heating purposes by the approximately 12,000 households that have a wood or pellet burning
stove or fireplace, as well as a small number of establishments in the services sector and industry.
Generation of renewable energy from waste treatment in the form of heat made a contribution of just
under 7 GWh in 2017. This contribution is attributed to the combined heating and power (CHP) and
Regenerative Thermal Oxidiser (RTO) facilities at the Sant Antnin Solid Waste Treatment Plan (SAWTP),
an RTO at the Maghtab Environmental Complex and the Malta North Mechanical and Biological
treatment plant. Waste management in Malta is driven by Malta’s Waste Management Plan, adopted
in 2014, which focuses on increased prevention, re-use, recycling and recovery and minimisation of
disposal and considers energy recovery as an effective measure to process residual waste and reduce
land-filling.
Share of RES in the electricity sector
Figure 67 - Renewable energy consumption in the electricity sector between 2010-2017, GWh
The share of electricity production from renewable energy in relation to total electricity consumption
was 7.4% in 2017, an increase from 6.4% from the previous year. Apart from electricity generation
from PV systems, the other contributor towards renewable electricity are the electrical output from
CHP plants treating waste and sewage, managed by Wasteserv and Water Services Corporation
respectively. In 2017, waste-to-energy plants generated 9.74 GWh of electricity. The contribution of
microwind is deemed to be negligible. The development of renewable energy consumption in the
electricity sector from 2010 to 2017 can be seen in Figure 67. Renewable electricity generation in 2017
amounted to 172 GWh.
Share of RES in transport sector
In 2017, 2.1% of the transport sector’s total energy consumption was attributed to RES. Malta’s push
to decrease the sector’s dependency on fossil fuels has been given great importance, with focus placed
primarily on achieving the separate 10% RES-T target in 2020. The lack of a mass transport system or
0
20
40
60
80
100
120
140
160
180
200
2010 2011 2012 2013 2014 2015 2016 2017
GWh
RES consumption in electricity, 2010-2017, GWh
Solar PV WtE (elec)
148
rail largely limits the electrification options to the replacement of ICE vehicles by EVs. RES consumption
in the transport sector in 2017 reached 87.1 GWh, which constitutes a significant increase from the
7.9 GWh in 2010.
Figure 68 - Renewable energy consumption in the transport sector, GWh
As shown in Figure 68, RES in the transport sector is almost exclusively the result of the use of biofuels,
with renewable electricity in transport having a minimal role. The dominant biofuels used in Malta are
Hydro-treated Vegetable Oil (HVO) and FAME biodiesel. Malta requires that biofuels placed on the
market fulfil the necessary sustainability criteria and comply with EU directives and local legislation.
In order to achieve an increasing penetration of biofuels in the transport sector, Legal Notice 68/2011
was published in 2011. This introduced a ‘substitution obligation’ for biofuels, by which importers and
wholesalers of automotive fuels are obliged to place on the market a minimum biofuel content as a
percentage of the total energy content of fossil diesel and petrol.
In 2018, fuel suppliers were obliged to blend conventional automotive fuels with at least 8.5% biofuels
by energy content. The percentage blend shall rise to 10% by 2020, thus enabling Malta to reach its
RES target in transport. To supplement diesel blending, the use of HVO has been introduced by
importers since 2015. As of 2017, 47 GWh of HVO was consumed by road transport, which accounts
for more than half of the renewable energy consumption of the transport sector.
As mentioned above and seen in Figure 68 the contribution of renewable electricity in the transport
sector is only marginal. In 2017, there were 332 registered electric vehicles in Malta, ranging from
passenger vehicles, motorcycles and quads to electric light and heavy-duty vehicles. Another 861
vehicles were registered as hybrid. The main benefit of electric vehicles lies in achieving zero tailpipe
emissions, although the effective reduction in GHG emissions largely depends on the energy mix and
efficiency of generation infrastructure. However, these figures are negligible when compared to the
total number of 364,274 passenger, light duty and heavy-duty vehicles registered in Malta as of end
of 2017. The low uptake of electric vehicles can be attributed to the relatively high capital cost
compared to internal combustion engines, notwithstanding Government incentives to promote the
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2010 2011 2012 2013 2014 2015 2016 2017
GWh
RES consumption in transport, GWh
Biofuels Electric vehicles
149
purchase of electric vehicles, which include a grant of 6,000 EUR available to individuals, enterprises,
as well as NGOs when purchasing an electric vehicle.
Indicative projections of development with existing policies for the year 2030 with
an outlook to the year 2040
Current policies and measures on the promotion and support of renewable energy extend until 2020,
in line with the 2017 National Renewable Energy Action Plan. Under the ‘With Existing Measures’
scenario of the NECP it is assumed that existing support for RES, such as the PV grants scheme and the
substitution obligation on fuel importers will not be extended beyond their current timeframe. In view
of this, it must be noted that the WEM scenario does not reflect Malta’s RES contribution and expected
development in the area of renewables until 2030; this is outlined in Section 2. Table 21 illustrates
the overall RES share in Malta’s projected gross final energy consumption until 2040 under the WEM
scenario. While the overall RES share, as well as renewables in the electricity sector and transport
sector would decrease, RES in heating & cooling would continue to increase because air-to-air heat
pump technology deployment is not policy-driven. In the transport sector, the RES-T share would fall
almost to zero due to the absence of an obligation for fuel importers to blend biofuels post-2020.
Table 21 - Overall RES share and sectoral shares under WEM scenario, 2021-2030, GWh
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total RES share
7.7%
7.7%
7.7%
7.6%
7.5%
7.4%
7.3%
7.2%
7.1%
7.1%
RES-E
9.9%
9.7%
9.4%
9.2%
9.0%
8.7%
8.5%
8.2%
8.0%
7.9%
RES-T
0.0%
0.1%
0.1%
0.1%
0.1%
0.1%
0.1%
0.2%
0.2%
0.2%
RES-H&C
22.8%
23.3%
23.9%
24.4%
24.1%
24.2%
24.3%
24.5%
24.6%
24.9%
Figure 69 - RES overall share and by sector under the WEM scenario, 2021-2030, %
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
RES overall and sectoral share under WEM
WEM Total RES share WEM RES-E
WEM RES-T WEM RES-H&C
150
4.3 DIMENSION ENERGY EFFICIENCY
Current primary and final energy consumption in the economy and per sector
Malta’s total primary and final energy consumption by sector from 2013 until 2017 is presented in
Table 22. Figures provided in this table include ambient heat.
Table 22 - Total primary energy consumption and final energy consumption by sector from 2013-2017, ktoe
(including heat pumps)
2013
2014
2015
2016
2017
Total primary energy consumption
874
882
762
723
829
Total final energy consumption
531
552
583
592
634
Transport
286
297
312
321
347
Industry
52
55
56
56
58
Services
107
114
122
122
126
Residential
76
77
84
83
95
Agriculture, forestry, fishing
6
6
6
7
7
The distribution of final energy consumption by sector in 2017 (including heat pumps) is shown in
Figure 70. The transport sector contributes to more than half of total consumption, followed by the
services and residential sectors as the other predominant consumers of energy.
Figure 70 - Final energy consumption by sector in 2017, %
Transport
55%
Industry
9%
Services
20%
Residential
15%
Agriculture,
forestry, fishing
1%
Transport Industry Services Residential Agriculture, forestry, fishing
151
Current potential for the application of high-efficiency cogeneration and efficient
district heating and cooling
The residential and services sectors make up 87% of the total estimated heating and cooling demand.
88
Local climatic conditions impose a much higher summer cooling demand than the winter heating
requirements. Malta has no public district heating and cooling network. This cooling demand is
currently being addressed through efficient air-to-air heat pumps, which are widely used in both
households and commercial buildings. These heat pumps are also being used in reverse mode for
spatial heating purposes. In recent years, with the increase of high-end high-rise buildings, centralized
solutions have become more widespread leading to more cost-effective heating and cooling.
However, the main consumer of fuel-based spatial heating technologies is the hotel sector. As an
effort to incentivise the uptake of high efficient CHP units, in 2016 the government released a scheme
whereby enterprises are eligible for aid through tax credits. To date, the uptake was nil, mainly due to
spatial requirements for on-site fuel storage (mainly LPG) and applicable international standards.
The Comprehensive Assessment of the Maltese heating and cooling demand commissioned in 2015,
titled ‘An Energy Roadmap- Towards Achieving Decarbonization for the Maltese Islands – Analysis for
a Cost-Effective and Efficient Heating and Cooling’
89
carried out in accordance with the provisions of
Article 14(1) of the Energy Efficiency Directive – 2012/27/EU, sought to identify the potential of
technically and economically feasible applications of high efficiency cogeneration and efficient district
heating and cooling.
In view of the current installed stock of heating and cooling technologies, which is already very
efficient, and the low share of heating demand, it is envisaged that the role of heating and cooling
networks and CHP technology in the next decade is only marginal. This is further accentuated by the
fact that Malta has practically no available indigenous resources of biomass or biogas, and currently
there is no natural gas distribution network to render the fuel supply cheaper than the present
options.
This is reflected in the conclusions of the study which shows that the final energy consumption for
heating and cooling purposes is relatively low compared to what is needed to create favourable
conditions for enhancing CHP and district heating. Despite the increase in final energy consumption
for heating and cooling foreseen for 2020 and 2030 in the services and industry sectors, the final
heating demand is likely to remain too low to make such technologies feasible. This is even more
evident for micro-cogeneration that rely on a stronger demand.
Projections considering existing energy efficiency policies, measures and
programmes for primary and final energy consumption for each sector at least until
2040
Figure 71 includes a projection for primary and final energy consumption under the WEM scenario,
including heat pumps. As seen from the figure, Malta’s primary and final energy consumption would
continue to grow in the projected period under the WEM scenario. The highest consuming sector
88
Figure estimated based on 2013 data. Source: An Energy Roadmap- Towards Achieving Decarbonization for the Maltese
Islands – Analysis for a Cost-Effective and Efficient Heating and Cooling
89
Ibid.
152
would remain the transport sector, with road transport contributing to approximately half of the total
share of transport.
Figure 71 - Projections for energy consumption under the WEM scenario, ktoe (incl. heat pumps)
Cost-optimal levels of minimum energy performance requirements resulting from
national calculations according to Article 5 of EPBD
In 2015, a new document “Technical Document F – Minimum Energy Performance requirements for
Buildings in Malta” was issued, updating the existing minimum energy performance requirements,
and listing the overall energy thresholds for residential buildings and offices. The document is divided
into two parts.
The first part of the document specifies the minimum energy performance requirements for buildings
in Malta and the Overall Energy Performance Requirements for new Dwellings (Table 23) and the
Overall Energy Performance Requirement for new non-Dwellings (Table 24), specifically for offices.
Part 2 of Technical Document F focuses on the minimum requirements for building services in Malta.
Table 23 Overall energy performance requirement for new dwellings, kWh/m² per annum.
Building category
Flatted
dwellings
Terraced
houses
Semi-
detached
housing
Fully-
detached
housing
Indicative
mean Energy
requirement
Primary energy
demand
(kWh/m² annum)
140
90
55
55
85
0
200
400
600
800
1,000
1,200
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
Transport Industry Services
Residential Agriculture, forestry, fishing Others
Final Energy Consumption Primary Energy Consumption
153
Table 24 Overall energy performance requirement for new non-dwellings (offices), kWh/m² per annum.
Building category
Buildings used
exclusively as offices
Buildings with offices occupying
>50% of useful floor area
Primary Energy Demand
(kWh/m² annum)
290
350
4.4 DIMENSION ENERGY SECURITY
Current energy mix, domestic energy resources, import dependency, including
relevant risks
The diversification of energy sources and suppliers achieved over the last years constitutes an
important milestone for Malta, a country which lacks indigenous energy sources aside from renewable
energy (which itself faces certain technical limitations). In 2015, the Maltese national grid was
connected to the European energy network through a 200MW Malta-Italy HVAC cable; this was an
important milestone which ended Malta’s isolation from the European electricity network, and
provided increased security of supply and flexibility of electricity services.
The energy mix of primary products as a share in gross inland consumption in 2017, as shown in
Figure 72, portrays the effects of diversification and the recent reforms of Malta’s energy system. The
high dependency on oil and petroleum products decreased from 79% in 2016 to 55% in 2017, whereby
the share of natural gas now amounts to 31% of the energy mix. The share of renewable energy is also
increasing on an annual basis. The share of electricity imported over the interconnector in the energy
mix in 2017 was 9%. In 2017, net import dependency
90
in Malta reached 95.8% as all energy sources,
apart from renewables are imported. Electricity is dispatched from local generation plants and the
90
This indicator (as defined in Eurostat) measures the level of total net energy imports as a proportion of total gross inland consumption
and the fuel supplied to international maritime bunkers. Net import dependency, as defined in Eurostat, may reach values of above 100%
in cases of increasing stock levels. Negative dependency rates indicate that a country is a net exporter of energy.
154
interconnector with Sicily based on their order of economic merit, technical capacity and existing
contractual arrangements.
Figure 72 - Estimated energy mix as share in gross inland consumption, including electricity imported over
the interconnector in 2017, %.
Energy mix for Electricity Generation
Over the past five years, Malta has transformed its energy mix used for electricity generation from
one based on heavy fuel oil and gasoil, to a more sustainable energy mix based on gas, gasoil (for
backup), renewables, and electricity imports through the interconnector (Figure 73). Following
significant investments in a new generation plant and the conversion of an existing plant, natural gas
replaced heavy fuel oil as the main fuel for electricity generation. In 2017, LNG constituted almost 65%
of local energy mix for electricity generation, with electricity imported over the interconnector and
gasoil/fuel oil covering the remaining portion at 19% and 13% respectively. The increased efficiency
of the new generation plant also significantly reduced primary energy demand in Malta.
Oils
55%
Natural Gas
31%
RES
5%
Electricity
(interconnector)
9%
155
Figure 73 Energy mix for electricity generation between in 2013 and 2017, ktoe.
LNG is currently imported via marine carriers and held in a floating storage unit which supplies gas to
two power plants. There are no onshore LNG or gas storage facilities. The establishment of the LNG
facility further diversified the sources of supply, as it provides access to an unlimited number of
sources of LNG on the international market. Gas deliveries to Malta in 2017 and 2018 in bcm, and
converted to energy, are provided below:
Table 25 - Gas deliveries to Malta, 2017-2018
Gas deliveries
bcm
91
TJ
92
GWh
2017
0.27
10,776
2,993.24
2018
0.35
13,614
3,781.70
91
Standard Temperature and Pressure (15°C, 760mm Hg)
92
Based on average higher heating value
156
Alternative third countries tapped for LNG imports since 2017 included the USA, Equatorial Guinea,
Egypt,Trinidad and Tobago, Peru, Norway and Nigeria. LNG deliveries by sources of origin are shown
in Figure 74.
Figure 74 - LNG Deliveries by origin, 2017 and 2018
Projections of development with existing PAMs at least until 2040
In the coming years, the energy mix for electricity generation shall be maintained and consolidated.
The Malta-Sicily gas pipeline project would provide access to natural gas over the European gas grid
and would be able to replace the present LNG supply. The pipeline would also allow for the possibility
of scaling up the gas-fired power generation facilities at Delimara so as to meet the growing electricity
demand, should this be identified as the preferred option. The existing LNG facility is sized to provide
gas for the present configuration and would not be able to handle additional power generation units.
For the short to medium term gasoil shall continue to be a secondary source of energy, used during
instances of emergency by a backup power plant and four dual-fuel diesel engines. At present, there
are no plans for a second interconnector
93
, thus the WEM scenario maintains present levels of
interconnection capacity. Figure 75 outlines the projected electricity generation by source until 2030,
with a view to 2040, distinguishing between local generation from conventional fuels and renewable
sources, and that imported through the interconnector. Conventional fuels refer to natural gas, as
well as gasoil in 2017. Renewable sources contributing to electricity generation include solar
photovoltaics and biogas used in the existing waste-to-energy plants, which are expected to generate
approximately 13-14 GWh in the projected period. Based on projected gas prices, the introduction of
the gas pipeline in 2025 would increase the competitiveness of local generation vis-à-vis electricity
imported over the interconnector.
93
This is subject to the outcomes of the in-depth study on power generation commissioned by the Government
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
South America Africa Europe USA
m3
LNG deliveries by origin
2018 2017
157
Figure 75 - Electricity generation by source under the WEM scenario, 2018-2040
Net import dependency is expected to remain at a level between 99.5 – 99.3% under the WEM
scenario. The electricity generation of domestic energy sources, therefore renewables, is expected to
peak in 2021, since under the WEM scenario no government support will be provided post-2020. Solar
PVs would generate 273 GWh in 2021, which would decrease slightly to 261 GWh in 2030 as some PV
systems reach their end of life.
Under this scenario, natural gas, used as fuel in the power generation sector, will be imported in the
form of LNG until the commissioning of the MTGP pipeline in 2025. After 2025, natural gas and
potentially biogas will be imported from the EU’s Trans-European Network via Sicily.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
GWh/annum
Electricity generation by source (WEM)
Conventional Net interconnector Renewables
158
4.5 DIMENSION INTERNAL ENERGY MARKET
4.5.1 Electricity interconnectivity
Current interconnection level and main interconnectors
At the end of 2017, Malta had an interconnection level of 31%, well above the 2030 interconnection
target of 15%. Import interconnection capacity amounted to 200MW, while Malta’s net nominal
generation capacity in 2017 was 650MW. Malta aligned its methodology for the calculation of the
current interconnection level with the European Commission’s approach as included in the country
factsheets of the Third State of the Energy Union report, whereby the interconnection level is
calculated as a ratio between import interconnection capacity and net installed generation capacity.
The details of 200MW HVAC interconnector are outlined in Table 26.
Table 26 Malta-Sicily Electricity interconnector details.
Characteristics
Details
Starting point
Substation in Sicily – Ragusa
Landing point in Sicily
Marina di Ragusa
On-shore route (Sicily Marina di Ragusa to Ragusa)
18.992km
Off-shore route
98.735
Landing point Malta
Qalet Marku
End point Malta
Maghtab substation
On-shore route Malta
Included in the offshore route length
Average depth
110m
Voltage rating
220 kV AC
Nominal capacity
200MW
Total length of interconnector
117.727 km
Projections of interconnector expansion requirements (including for the year 2030)
As indicated in the section above, Malta’s electricity interconnection level is well above the 15% EU
interconnection target for 2030 required by the Governance regulation. Currently, there are no plans
for a second interconnector, although this is subject to the outcome of the in-depth study on power
generation covering the period 2019-2040 commissioned by the Government.
159
4.5.2 Energy transmission infrastructure
Key characteristics of the existing transmission infrastructure for electricity and gas
As described in Section 2.4.2 related to national objectives and targets in the area of energy
transmission infrastructure, in Malta there is no electricity transmission system. Details on the
planned gas pipeline project are described in detail under the Energy Security dimension.
Projections of network expansion requirements at least until 2040
The local distribution grid network has three voltage levels, i.e. 132kV, 33kV, and 11kV. Reinforcement
of the 11kV network is a continuous process following increase in demand. The seasonal peak load on
the 33kV Distribution Centres (DC’s) is monitored and measured against respective DC installed
transformer capacity, so that the necessary expansions (installation of additional transformers, or
erection of new DC’s) are affected before the N-1 threshold is reached. Reinforcement of the 33kV
network is affected to sustain these DC expansions. With regards to the 132kV network, while this
network presently caters for N-1 requirements, Enemalta is planning for reinforcement of the 132kV
network in view of future normal demand increase as well as planned large-scale infrastructural
investments which will entail a substantial stepped increase in localised demand. Enemalta is also
studying the reinforcement of the 132kV network required for Malta’s grid to be self-sufficient in the
eventuality of long-term unavailability of the Malta-Sicily Interconnector.
4.5.3 Electricity and gas markets, energy prices
Current situation of electricity and gas markets, including energy prices
As noted in previous sections, there are no wholesale electricity or gas markets in Malta. Enemalta
performs the functions of a DSO and constitutes the sole electricity supplier to final consumers.
Wholesale electricity prices are reported by REWS as the proxy for the market price
94
, that is, as the
average cost of meeting the demand forecast through local generation and, as of 2015, electricity
imported over the interconnector excluding generation from RES. Following recent significant
investments in the energy infrastructure, the proxy for the market price has followed a steady decline
since 2011 (Figure 76) from €0.12/kWh in 2011 to €0.071/kWh in 2017.
94
As there is no liquid wholesale market in Malta, the proxy for the market price is used to establish a reference price for electricity
generation. This is published on an annual basis under Subsidiary Legislation 545.27 entitled “Feed-in Tariffs Scheme (Electricity Generated
from Solar Photovoltaic Installations) Regulations.”
160
Figure 76 Trends in the proxy for the market price from 2011-2017, EUR (2016)/kWh.
Projections of development with existing policies and measures until at least 2040
(including for the year 2030)
The projected evolution of energy prices under both the ‘With Existing Measures’ and ‘With Planned
Measures’ scenario, including the price projections used in the Malta’s NECP modelling framework,
are included under the internal energy market part of Section 5.1.i.
4.6 DIMENSION RESEARCH, INNOVATION AND COMPETITIVENESS
Current situation of the low-carbon-technologies sector and its position on the
global market
As reported in the EU Innovation Scoreboard of 2019, Malta is considered a Moderate Innovator and
has shown a performance increase overtime. As stated in the report, Malta has an Innovation-friendly
environment and strong employment impacts with respect to knowledge-intensive activities and fast-
growing enterprises. This has resulted in Malta ranking as the highest EU Member State when it comes
to intellectual assets, with special focus on trademark and design applications. Malta’s lowest
performance is noted to be in its expenditures, specifically in R&I by the public sector and co-funding
between the private and public sectors. This is reflected in Eurostat data, with public R&I expenditure
at 0.01% of the GDP in 2016 which is low compared to the private and education sectors expenditures
of 0.35% and 0.21% respectively. In terms of low-carbon technologies R&I, in 2016, Malta was
reported to have the lowest expenditure at 0.002% of the GDP compared to the EU average of 0.027%.
R&I in Low-Carbon Technologies within National Policy
The National Energy Policy (2012) designated RES as the focus of the public sector’s research efforts
in energy, reflecting the absence of other indigenous energy resources, as well as the early stage of
-
0.020
0.040
0.060
0.080
0.100
0.120
0.140
2011 2012 2013 2014 2015 2016 2017
EUR (2016=100)
/kWh
161
development of Malta’s R&I sector at the time. Malta’s 2017 NREAP expands on this policy focus and
aims to encourage R&I in the development and commercialisation of RES technology, with particular
focus on solar and wave energy, including the potential exploitation of marine-based RES.
Under the National Integrated Maritime Policy (2015), energy is identified as one of the four main
maritime pillars, including a specific emphasis on renewable energy. In particular, the policy notes that
the Maltese Government will continue to promote the research into the exploration of blue renewable
energy opportunities and encourage further collaboration between research and academic
institutions including in the implementation of pilot projects.
Under the Smart Specialisation Strategy of Malta’s National Strategy for R&I, published and
implemented by the Malta Council for Science and Technology (MCST), energy and low-carbon
technologies featured under the theme of resource-efficient buildings. As a result, access to European
Structural and Investment Funds for R&I in low-carbon technologies was limited to projects which
focused on buildings. This sector was identified with the goal of exploring innovative solutions for
improved resource efficiency in new and existing buildings, including through demonstration projects
and optimisation.
Funding for R&I in the Field of Low-Carbon Techologies
National Funding Schemes
FUSION Programme
FUSION
95
is the programme for the disbursement of public funding for R&I support, managed by the
Malta Council for Science and Technology (MCST). The budget is set to approximately €2.2 million
annually in the period 2018-2020. FUSION is composed of two programmes:
1. The Commercialisation Voucher Programme (CVP): this aims to improve the development and
commercialisation potential of innovative research ideas. While the programme does not
contribute directly to Malta’s R&I expenditure target, it seeks to ensure that the
commercialisation potential of proposed innovative solutions is taken into account in the
preparatory stages of the project, including the protection of potential intellectual property.
2. The Technology Development Programme (TDP): this aims to support the actual development
of innovative projects proposed by public and industrial entities. TDP provides state financing
in the form of grants for research, development and innovation in science and technology.
In terms of energy and low-carbon technology projects, MCST has disbursed approximately €1.17
million between 2015 and 2018 through the TDP. No changes in expenditure expected until 2020,
unless additional measures are implemented to increase interest in this field.
Research Innovation and Development Trust
The Research Innovation and Development Trust (RIDT) is a funding system established by the
Government of Malta in 2011 and run by the University of Malta. RIDT was established to help bolster
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http://mcst.gov.mt/ri-programmes/fusion/
162
investment in research and development on a national level, with the Trust intended to attract funds
from private and corporate bodies as well as foster the commercial exploitation of research within the
University of Malta. A project aimed at developing of a model offshore hydraulic energy storage
system (FLASC) is one of the projects which has received funding under the RIDT.
The Internal Research Grants Programme
The University of Malta established an internal funding programme, run by the Research Support
Services Directorate, to support academics in carrying out their research and act as a springboard to
obtain additional funding from other local and foreign sources. The programme offers, on an annual
basis, an award of €60,000 to four research projects to be implemented over a two-year period. One
project is selected from each of the four identified priority areas: (i) Life Sciences; (ii) Natural Sciences;
(iii) Engineering, ICT and Built Environment; and (iv) Arts, Humanities and Social Sciences.
Malta Enterprise Support Measures
Malta Enterprise is the country's economic development agency, tasked with attracting new foreign
direct investment as well as facilitating the growth of existing operations. It also provides incentives
for the the promotion and expansion of industry and the development of innovative enterprises,
including through R&I.
The “Innovation Aid for SMEs” is an incentive that allows qualified SMEs to recover, in the form of tax
credits, part of the costs incurred for the loaning of highly qualified personnel. There are two other
support measures: (i) “R&D Feasibility Studies 2014 – 2020” which supports enterprises intending to
undertake Industrial R&D projects; (ii) “Research and Development 2014 – 2020” which provides
support for industrial R&D carried out for the acquisition of knowledge leading to the development of
innovative products and solutions. The maximum aid incentives percentages vary depending on the
size of the enterprise and whether they are leading or collaborating on the project.
TAKEOFF
TAKEOFF is a business incubator located within the Centre for Entrepreneurship and Business
Incubation (CEBI) at the University of Malta. It works alongside partner agencies in Malta to help
people solve real world problems with real solutions. This is done through services such as training for
various stages of enterprise growth and three intensive programmes dedicated to different enterprise
levels, besides financing and capital. The campus also manages three seed funding programmes, two
of which are relevant to topics under the Energy Union: “Maritime Seed Fund Awards” and “TAKEOFF
Seed Fund Awards” (TOFSA).
The former, a collaboration between Malta Marittima and the University of Malta, offers €100,000 in
support on an annual basis to finance researchers and entrepreneurs moving towards
commercialisation of their maritime-related technologies. The project to develop FLASC was among
those projects awarded under this Seed Fund. TOFSA, a joint intitiative between the CEBI and the
Ministry for the Economy, Industry and Small Businesses, provides support for the commercialisation
of business or research ideas. A total of €100,000 is earmarked for distribution, separated into grants
163
ranging from €2,500 and €20,000. One project that was awarded €20,000 is the Hybrid Boat project;
this relates to the prototype of the Innovative Catamaran, a vessel which incorporates the latest
technologies in electric drive system, battery monitoring and management, smart charging and
flexible photovoltaics with integrated design.
EU LEVEL SUPPORT
Horizon 2020
Maltese entities are involved in a number of Horizon 2020 projects under the areas of secure, clean
and efficient energy as well as climate action, environment, resource efficiency and raw materials. The
total budget of projects under these actions amounts to €108 million, of which approximately €2.67
million has been allocated to Maltese beneficiaries. Of these allocations, the net EU finiancial
contribution towards secure, clean and efficient energy amounts to approximately €1.174 million
since 2014. Researchers from Malta also participated in the EU’s Framework Programme for Research
and Technological Development (FP), under which projects related to the areas of environment
(including climate change) and energy amounting to a total of €44 million, with Maltese beneficiaries
being allocated less than €800,000 and total project budgets amounting to around €14 million.
Other EU Funds
Operational Programme 1, which manages Malta’s ERDF-CF funds for the 2014-2020 period, provides
support for projects within its twelve priority axes; these include low-carbon economy, R&I and low-
carbon transport. The total amount of funds available amounts to around €718 million. A number of
R&I projects relating to the field of low-carbon technologies have received funding through this
programme, particularly which establish research infrastructures; these have received over €55
million. The Solar Research Laboratory of the Institute for Sustainable Energy (University of Malta),
designed with the primary focus of undertaking research on materials used for solar cells, and the
Sustainable Living Complex at the University of Malta, were supported by ERDF funds.
ERDF funds were also accessed by Maltese researchers through Interreg Mediterranean and Interreg
Europe 2014-2020. Projects which received support in areas relating to low-carbon technologies
include: (i) the CONSUME-LESS project, led by the Energy and Water Agency; (ii) PROMETHEUS,
coordinated by Transport Malta for a shift in low-carbon technology within the transport sector with
emphasis on electric vehicles; (iii) SMART-HY-AWARE, a project addressing the transition to a low-
carbon economy of the transport sector with special focus on hydrogen-electric mobility in which
Transport Malta is a partner.
National Research and Innovation Projects
An initial stock-taking exercise was carried out by the Energy and Water Agency in 2019 to assess the
level of domestic R&I in energy and low-carbon technologies from 2010-2018; information on R&I
disaggregated to this sectoral level is not yet reported nationally. An overview of these projects,
grouped by SET Plan Actions is provided in Table 27. This illustrates that the majority of domestic R&I
in this field has, so far, been dedicated to energy use in buildings (due to the inclusion of “Resource
164
Efficient Buildings” as a Smart Specialisation Area 2014-2020, thus allowing access to ESIF) and the
development of new technologies.
Table 27 - Overview of domestic R&I projects carried out between 2010-2018, grouped by Set Plan Actions
SET Plan Actions
No. of
Projects
Total Grant
Value
1
Performant renewable technologies integreated in the system
7
€1,439,416
2
Reduce costs of technologies
0
3
New technologies & services for consumers
6
€4,936,855
4
Resilience & security of energy system
7
€1,112,544
5
New materials & technologies for buildings
3
€6,151,588
6
Energy efficiency for industry
1
€194,987
7
Competitive global battery sector (e-mobility)
0
8
Renewable fuels
9
€6,823,693.57
9
CSS/U
0
10
Nuclear Safety
0
Current level of public and, if available, private research and innovation spending
on low-carbon-technologies, current number of patents, and current number of
researchers
Current Level of Public and Private Research and Innovation Spending on Low-Carbon Technologies
In 2017, total expenditure on R&I in Malta amounted to €66 million, or 0.58% of GDP. The private
sector contributed to 65.3% of the total R&I expenditure, while national funding constituting
Government Sector and Higher Education Sector expenditure contributed to 34.7%.
3.9% of the total public expenditure, amounting to €2.4 million, was earmarked for projects in the
fields of Energy and Environment. In Malta, sectoral disaggregation of R&I data is carried out in line
with the Frascati Manual (2015
96
). Private sector expenditure within these fields amounted to
€895,846 for the year 2017.
Table 28 - Public sector R&I expenditure by relevant fields of socio-economic objective, EUR (Source: NSO).
R&I Expenditure in Euros in the Public Sector related to the Energy Union
2014
2015
2016
2017
Environment
2,524,362
1,034,181
2,122,278
2,340,757
Energy
91,497
22,138
49,116
54,449
Total
2,615,859
1,056,319
2,171,394
2,395,206
96
http://www.oecd.org/publications/frascati-manual-2015-9789264239012-en.htm
165
Table 29 - Private sector R&I expenditure by relevant fields of socio-economic objective, EUR (Source: NSO).
R&I Expenditure in Euros in the Private Sector related to the Energy Union
2014
2015
2016
2017
Environment
617,338
749,643
887,671
790,846
Energy
628,683
187,360
137,500
105,000
Total
1,246,021
937,003
1,025,171
895,846
Current Number of Patents
According to Eurostat, based Patent applications to the European Patent Office (EPO), a total of 6.63
registered patent applications were reported in 2017. In terms of Energy Union patents, Malta is
reported by the SETIS database as having 2.33 patents per million inhabitants in 2014.
Current Number of Researchers
In 2017, 1,546 researchers in Malta were engaged in R&I. The highest number of researchers were
registered with the Public sector, amounting to 62%, mainly attributed to the Higher Education sector
specifically. The total number of researchers between 2014 – 2017, as reported by NSO, is shown in
Table 30.
Table 30 - Total number of researchers between 2014-2017, (Source: Eurostat tsc00003 & NSO).
Current Number of Researchers
2014
2015
2016
2017
Public Sector
876
897
886
955
Private Sector
473
515
584
591
Total
1,349
1,412
1,470
1,546
Out of the total number of researchers, an average of 54% are engaged in fields relating to the Energy
Union dimensions, that is Natural Sciences, Engineering and Technology and Agricultural sciences. The
trend from 2014 to 2017 (Table 31) shows a growing number of researchers within these relevant
fields.
Table 31 - Number of researchers by relevant fields of science between 2014-2017, (Source: NSO).
Total Number of Researchers Per Field of Study
FIELD OF STUDY
2014
2015
2016
2017
Natural Sciences
332
355
340
348
Engineering & Technology
369
367
431
461
Medical & Health Sciences
207
214
231
232
Agricultural Sciences
24
35
26
26
Social Sciences
257
267
281
313
Humanities & The Arts
151
168
161
166
Not Classified
9
6
0
0
Total of relevant fields of science
725
757
797
835
Total of all fields of science
1349
1412
1470
1,546
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Breakdown of current price elements that make up three main price components
(energy, network, taxes/levies)
Electricity price elements that make up the three main price components are published by Eurostat
for both households and non-household consumers. To note that until 2013, apart from a number of
small renewable energy generators, electricity generation, distribution and supply were provided by
a single vertically integrated operator, Enemalta plc. The regulated electricity prices reflected the
overall costs incurred by these operations as well as a reasonable rate of return. The tariffs adopted
a rising block structure to incentivise energy efficiency whilst ensuring that industry which have a
significant consumption by virtue of their operations would remain competitive on the international
market
97
.
However, with the privatization of the Delimara 3 149MW plant, the construction of Delimara 4, a
205MW plant by a private operator, and the shutting down of both Marsa and the Delimara 1 power
plant, almost all of the conventional power generation is now no longer operated by Enemalta.
Enemalta maintains its exclusive electricity distribution and supply functions.
The network-associated price component has for the past 10 years been estimated at €0.0220 per
kWh whereas the energy and supply component vary depending on the tariff band and published
prices. A 5% VAT applies, which is the only significant applicable levy/tax element (Malta applies the
minimum levels of taxation applicable to electricity in line with Council Directive 2003/96/EC. This
varies between 0.5 and 1.0 Euro/MWh). Table 32 lists the main price components as applicable to
different tariff bands for the non-household sector.
Table 32 - Main price components by tariff bands in non-household sector in 2017, EUR nominal (Source:
Eurostat).
ALL
BANDS
(IA-IF)
BAND 1A
<20 MWh
BAND 1B
20 MWh -
499 MWh
BAND 1C
500 MWh -
1 999 MWh
BAND 1D
2 000 MWh
- 19 999
MWh
BAND 1E
20 000
MWh - 69
999 MWh
BAND 1F
70 000
MWh - 149
999 MWh
Energy and
Supply
0.1202
0.1738
0.1301
0.1138
0.0981
0.0795
0.0747
Network
Costs
0.0220
0.0220
0.0220
0.0220
0.0220
0.0220
0.0220
VAT
(taxes/levies)
0.0071
0.0098
0.0076
0.0068
0.0060
0.0051
0.0048
Total
0.1493
0.2056
0.1597
0.1426
0.1261
0.1066
0.1015
For the household sector, the average energy and supply component during 2017 stood at
€0.1291/kWh whereas the network costs were estimated at €0.0220/kWh, and the taxes, fees and
levies at €0.0076/kWh. It must be noted that the electricity tariff in Malta does not include any
97
The present tariff structure is available at: https://www.enemalta.com.mt/services/tariffs-billing-and-payments/
167
renewable taxes, capacity taxes, environmental taxes or nuclear taxes. Costs associated with security
of supply are internalized whereas support for renewable energy is financed through central
government budget.
Description of energy subsidies, including for fossil fuels
The Government’s ambition is to provide its citizens with secure, affordable and clean energy
solutions. Malta’s recent investment in the energy sector is aimed to build sufficient capacity to match
the forecasted growth in electricity demand in the foreseeable future. The strategy hinges on an
electricity mix made up of renewables, interconnection capacity and high efficiency generators. It is
important to note that the generation from renewables and cogeneration continue to benefit from
priority dispatch and adequate financial support. Moreover, the Government is currently seeking to
obtain the necessary permits for a gas interconnector by 2020, with the aim to have the pipeline
commissioned by 2025.
Electricity generation from PV’s is a principal contributor to meet the renewables target by 2020.
However, the relatively high-cost of the technology compounded with issues of economies of scale
has ever since the introductory phase required varying levels of support. Support schemes are issued
periodically in line with State Aid Guidelines. Support schemes are usually in the form of feed-in tariffs
and/or grants for both residential and commercial systems. Feed-in tariffs are funded from central
budget, while ERDF funding is mostly used to fund grants. Standards and Guidelines for PV
installations, tailor-made for Malta’s specific conditions, have been developed. The standards clearly
lay out best practices for improved quality, safety and aesthetics in PV installations. It is also worth
noting that works on a communal solar farm are complete.
Other initiatives undertaken by the Government include the continued promotion of new electric
vehicles and energy efficient cars/quadricylces/pedelecs/motorcycles/mopeds/tricycles, to ensure a
more efficient usage of energy in vehicles and to reduce emissions.
Bearing in mind Malta’s specificities, there are no plans to phase out any energy subsidies at this
particular juncture, while remaining committed to, inter alia, encourage the adoption of technologies
that can help reduce greenhouse gas emissions.
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5 IMPACT ASSESSMENT OF PLANNED POLICIES AND MEASURES
5.1 IMPACTS OF PLANNED PAMS DESCRIBED IN SECTION 3 ON ENERGY SYSTEM AND
GHG EMISSIONS AND REMOVALS
Section 5.1 of the Plan presents Malta’s energy system and GHG emission projections when modelling
the impact of PAMs under the “With Planned Measures” scenario. The key benchmark levels chosen
for the comparative analysis and evaluation was the “With Existing Measures” projections (in order to
evaluate the pros and cons of the “planned measures” on the system with respect to a base-line or
“with existing measure” profile). The Impact Assessment section therefore focuses on an analysis of
the impacts of planned policies and measures (‘WPM’) in comparison to the Malta’s WEM scenario. It
is important to note that the exogenous factors influencing the energy sector models used to project
the main WPM scenario trajectories remain unchanged when compared to the ones used in the WEM.
Therefore, reference is made to Section 4.1 of the Plan for further details related to exogenous factors
such as macroeconomic assumptions.
Furthermore, as a complement to this analysis, scenarios in which certain key assumptions varied from
those adopted for the NECP were analysed in order to explore other possible medium- to long-term
responses of the energy system in reaction to such circumstances. The identification of these diverging
assumptions was informed by uncertainties surrounding independent factors which may have an
impact on the energy system and on the effect of the efficacy of PAMs outlined in the NECP. In this
regard, two factors emerged as predominant: (i) the rate of efficiency increase, as a result of market
factors; and (ii) the rate of electrification, as a result of market factors and behavioural change.
Outcomes from the modelling of these two sensitivities are thus also outlined in this section.
Indicators relating to the dimensions of the Energy Union were tracked in order to analyse the
potential range of results under these different visions of the evolving energy system.
Definitions relevant to the Analytical basis of the NECP:
· Energy/emission modelling framework: combination of tools, data, expert judgment, institutional
arrangements, used for different purposes, for and beyond energy/emission projections aiming to
support decision makers (e.g. for energy planning).
· Energy/emission projection system: combination of tools, data, expert judgment, institutional
arrangements used specifically for energy and emission projections.
· Integrated projections: projections based on an holistic approach which addresses simultaneously
as many perspectives or dimensions of the energy and climate dynamics as possible, and takes into
account the cross-cutting nature and interactions between those dimensions; in the context of this
analysis, the rationale behind “integrated projections” refers more particularly to the five dimensions
of the Energy Union (Decarbonisation, Energy efficiency, Energy security, Internal energy market,
Research, innovation and competitiveness).
· Storyline of a scenario: narrative description of a scenario, highlighting the assumptions and
drivers which characterize a scenario and make it different from other scenarios.
169
· Sensitivity analysis/ sensitivities: modelled WEM and WPM scenarios in which a number of key
assumptions diverged from those adopted for the purposes of the NECP.
Projections of the development of the energy system and GHG emissions and
removals as well as, where relevant of emissions of air pollutants in accordance
with Directive 2016/2284/EU under the planned PAMs at least until ten years after
the period covered by the plan
Table 33 includes a list of the policies and measures under Malta’s WPM scenario, as well as indication
of whether these have been modelled within Malta’s energy modelling framework and are explicitly
represented in the results and outcomes of the WPM scenario presented in the sections hereunder.
Table 33 - All policies and measures under the WPM scenario
PAM
number
Name of Policy or Measure
Modelled
PAMs
E.2.1
Financial support schemes for Solar PV
✓
E.2.2
Solar Water Heaters / Heat Pump Water Heater Scheme
✓
E.2.3
Energy efficiency: electricity tariffs
✓
E.2.4
Support Scheme for Services and Industry
✓
E.2.5
Energy Efficient Street Lighting
✓
E.2.6
Projects in primary water network and wastewater treatment plant
✓
E.2.7
Biofuels Substitution Obligation (2021-2030)
✓
E.2.8
Acquisition of renewable energy credits from other Member States
✓
E.2.9
Gas Security of Supply
✘
E.2.10
Development of R&I Strategy for Energy and Water
✘
C.2.1
Management of Farm Slurries in the Maltese Islands
✘
C.2.2
WtE Facility
✓
C.2.3
Waste Management Plan 2020 - 2030
✓
T.2.1
Removing traffic bottlenecks and reducing severance between urban
communities - Marsa Road Project
✓
T.2.2
Remove traffic bottleneck at Addolorata junction, Marsa
✓
T.2.3
Road and infrastructure projects
✓
T.2.4
Malta - Gozo Tunnel
✓
T.2.5
Implement Public Transport Quality Corridors (PTQC)
✓
T.2.6
Improvement of Ferry Landing Places
✓
T.2.7
Introduction of a low-emission zone (LEZ) in the 'hub'
✓
T.2.8
Smart Parking System for Valletta
✓
T.2.9
Fast passenger ferry link between Malta and Gozo
✓
T.2.10
Free Transport for Youths, Students, and school children
✓
170
T.2.11
Increase use of Intelligent Transport Systems in traffic management
✓
T.2.12
National bicycle sharing scheme
✓
T.2.13
Last-Mile Delivery for Valletta
✘
T.2.14
Implementation of a cycling corridor
✘
T.2.15
Car-Sharing Scheme
✘
T.2.16
Sustainable Urban Mobility Plan for Valletta
✘
T.2.17
National Bicycle Strategy and Action Plan
✘
T.2.18
Introduction of electric buses in Gozo
✘
T.2.19
Continuation of EV Grants and Electromobility Action Plan
✘
Dimension Decarbonisation – GHG emissions and removals
GHG emissions projections split by sector under the WEM and WPM scenarios are described in Section
4.2.1ii of the Plan. To avoid repetition, these are not reproduced hereunder.
Projections in the ESR sector
The aggregated effect of the WEM scenario in comparison to the WPM scenario is illustrated in Figure
77, providing for a comparative analysis between the WEM against WPM scenario for the non-ETS
emissions sectors. The WEM scenario is denoted in the background with the stacked emissions of all
non-ETS emissions sectors (energy, IPPU, agriculture, waste and LULUCF. The red dotted line shows
the total effect of the WPM scenario, which as expected shows a reduction in emissions when
compared to the WEM scenario, as a result of the implementation of domestic policies and measures.
This reduction in emissions in the non-ETS emissions sectors under the WPM scenario, however is
projected to still result in emissions generation above the ESR target for 2030, which is shown as a
blue dotted line. The gap between the dotted lines has to be bridged either by means of additional
domestic policies and measures to be committed to and reported in subsequent iterations of the NECP
or by resorting to the flexibility mechanisms in line with the provisions of the ESR regulation.
171
Figure 77 - ESD/ESR projections by sector
98
Projections of emissions of air pollutants
The projected emissions of air pollutants provided hereunder were produced by the Environment and
Resources Authority (ERA) in accordance with the National Emissions Ceilings Directive (EU)
2016/2284. It is to be noted that these emissions were calculated primarily based on energy
consumption projections reported in Malta’s Draft NECP. During the development of the Final NECP,
Malta’s energy modelling framework was significantly revised and updated, which yielded new
projections of primary and final energy consumption for the projected period up to 2040. Therefore,
as a disclaimer, it must be pointed out that the projections of air emissions presented below do not
necessarily reflect the projected evolution of Malta’s energy system and the economy under the WPM
scenario. The National Inventory for Emission Ceilings will be updated in the next reporting cycle based
on the most recent energy consumption projections used for the Final NECP.
The National Emissions Ceilings Directive sets national emission reduction commitments for Member
States and the EU for five air pollutants:
- nitrogen oxides (NOx),
- non-methane volatile organic compounds (NMVOCs),
- sulphur dioxide (SO
2
),
- ammonia (NH
3
) and
- fine particulate matter (PM
2.5
).
Malta also calculated the projected black carbon (BC) emissions. These pollutants have a negative
impact on air quality, human health and the environment. Emissions are provided for the latest
98
Note: Base year emmissions used to estimate 2021-2030 trajectory equivalent to base year used in the 2013-2020 trajectory; base year
emissions shall be amended once the implementing acts derived from article 4 of Regulation (EU) 2018/842 of the European Parlamament
and Council enter into force.
0
200
400
600
800
1000
1200
1400
1600
1800
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Waste
LULUCF
Agriculture
IPPU
Energy
WPM total
ESD Trajectory 2015-
2020 (ESR trajectory
2021-2030 projected)
172
emission inventory year (2017), and projections for 2020, 2025 and 2030. The projections presented
within this section represent the ‘With Planned Measures’ scenario reported in the Draft NECP and
therefore the measures Malta is committed to implement and are modelled and reported in the NECP.
These emission projections were largely developed using the same models and activity drivers used
for the development of the NECP.
The NEC Directive requires that Member States draw up a National Air Pollution Control Programme
(NAPCP), which should contribute to the successful implementation of air quality plans established
under the EU’s Air Quality Directive. Alignment between Malta’s Draft NECP and NAPCP processes was
ensured, whereby the assumptions and outputs of one exercise fed into the other and vice-versa. ERA
is the government body responsible for the development of the NAPCP. In addition, expert assistance
was also provided through the capacity-building project on emission projections, funded by the
European Commission. This capacity-building project specifically provided support in developing
emission projections for road transport and national navigation sectors.
Figure 78 shows the national total emissions of air pollutants on the Maltese territory split by the five
main pollutants, including black carbon. It is projected that apart from ammonia all other air pollutants
are expected to decrease in the projected period until 2030 compared to 2017, the latest emission
inventory year.
Figure 78 - National total air pollutant emission projections, kt
Nitrogen Oxides (NO
x
) are expected to decrease in the projected period as a result of the
implementation of measures under the WPM scenario. Nitrogen oxide emissions are most prevalent
in the road transport sector – it is expected however that NO
x
emissions in road transport should
decrease by 42% by 2030, based on 2017 emissions, as a result of newer vehicle technologies,
increased electrification and a number of sustainable mobility measures in transport. To calculate NO
x
emissions in the road transport sector, the outputs of the vehicle profile model and vehicle kilometre
projections were used as input to COPERT. The largest NO
x
level increases, compared to 2017
emissions, are expected in the waste sector, as a result of the commissioning of the new Waste-to-
Energy facility in 2024, followed by the manufacturing and construction sector. NO
x
levels are also
0
1
2
3
4
5
6
NOx NMVOC SOx NH3 PM2.5 BC
kt
Projected air emissions, kt
2017 2020 2025 2030
173
expected to increase in the other sectors category, which includes the commercial, institutional,
residential and agriculture & fishing sectors as well as in the aviation and maritime transport sectors.
Figure 79 shows the projected NO
x
emissions by sector.
Figure 79 - NOx emission projections by sector, kt
Non-methane volatile organic compounds (NMVOCs) are expected to decrease by 25% in the
projected period compared to 2017, in particular due to the road transport sector, where it is expected
that NMVOC emissions will decrease by 66% by 2030. On the other hand, NMVOC levels are expected
to rise in all other sectors with the exception of waste. NMVOC emissions will remain stable in the
category solvent and other products and animal husbandry. Projected NMVOC levels are shown in
Figure 80.
0
0.5
1
1.5
2
2.5
3
3.5
Projected NO
x
emissions by sector, kt
2017 2020 2025 2030
174
Figure 80 - NMVOC emission projections by sector, kt
Sulphur dioxide (SO
2
) emissions are projected to decrease, primarily in the power generation sector.
Since 2017, local generation plants at the Delimara Power Station are fired by natural gas. Gasoil-
based generation capacities are available as back-up in case of emergencies or when other sources
are not available. It must be pointed out that the energy system modelling tools assume that electricity
will be generated by the natural gas-fired units and therefore gasoil consumption is projected to
remain 0 until the end of the projected period. In reality, a situation where gasoil-fired units are
utilized as standby capacity in the event of an emergency is possible in the next decade. Therefore,
while SO
2
emissions are expected to decrease drastically in the energy industries sector, they are
expected to continue increasing in the aviation and maritime transport sectors as well as waste after
the commissioning of the new waste to energy facility.
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Projected NMVOC emissions, kt
2017 2020 2025 2030
175
Figure 81 - SO
2
emission projections by sector, kt
Projected ammonia (NH
3
) levels are relatively high primarily in the animal husbandry and plant
production and agriculture soils sectors. As highlighted above, ammonia emissions are the only air
pollutant which is expected to increase in the projected period up to 2030, although only by 5%
compared to 2017 levels. This is largely due to slight increases in animal husbandry by 2020 as well as
the 7% increase in NH
3
emissions in the plant production and agriculture soils sector. Future projects
implemented by the Governance of Agricultural Bioresources Agency (GAB) are expected to reduce
NH
3
emissions. However, due to lack of information available at the time of the compilation of these
projections, GAB projects are not included in the projected emissions levels. NH
3
emission projections
are provided in Figure 82.
Figure 82 - NH
3
emission projections, kt
0
0.1
0.2
0.3
0.4
0.5
0.6
Projected SO
2
emissions, kt
2017 2020 2025 2030
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Projected NH
3
emissions, kt
2017 2020 2025 2030
176
Fine particulate matter (PM
2.5
) emissions are expected to decrease only slightly in the projected
period, as shown in Figure 83. The projected decrease which will be registered in the road transport
sector will be off-set by increased emission levels in off-road transport, which will surpass emissions
of the road transport sector by 2030. Other sectors, such as commercial, residential and institutional,
will increase slightly, as will manufacturing & construction and waste.
Figure 83 - PM
2.5
emission projections, kt
For the WPM scenario, Malta had also projected the emission levels of black carbon (BC) in sectors
where such information was available. The projected emission level of black carbon in 2030 compared
to 2017 will decrease by 22% due to decreasing emission levels in the road transport sector.
Nevertheless, BC emissions will continue increasing off-road transport, manufacturing & construction
and the commercial, residential and institutional sectors, as shown in Figure 84.
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
Projected PM
2.5
emissions, kt
2017 2020 2025 2030
177
Figure 84 - Black carbon emission projections, kt
Dimension Decarbonisation – Renewable energy
In line with Annex I of the Governance Regulation (EU) 2018/1999, Malta’s overall RES contribution in
2030 represented as a RES share in total gross final consumption of energy is presented in Section
2.1.2 of this plan. Likewise, estimated trajectories for the sectoral share of RES in final energy
consumption and by technology are also provided within Section 2.1.2. For the sake of avoiding
repetition, this section provides a general overview of Malta’s WPM scenario projections in the area
of renewable energy.
In line with Annex I of the Governance Regulation (EU) 2018/1999, Malta’s overall RES contribution in
2030 represented as a RES share in total gross final consumption of energy is presented in Section
2.1.2 of this plan. Likewise, estimated trajectories for the sectoral share of RES in final energy
consumption and by technology are also provided within Section 2.1.2. For the sake of avoiding
repetition, this section provides a general overview of Malta’s WPM scenario projections in the area
of renewable energy.
Figure 85 provides an overview of Malta’s RES share trajectory from 2010 to 2030, whilst comparing
the WEM and WPM scenarios. Based on these estimated projections, Malta will be required to
purchase renewable credits or use other cooperation mechanisms to reach its 10% RES target in 2020,
maintain this target in the following year (2021), and reach the first reference point in 2022
corresponding to 18% of its trajectory between 2020 and 2030. Malta’s RES contribution in 2030 is
11.5%.
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
Projected Black Carbon (BC) emissions, kt
2017 2020 2025 2030
178
Figure 85 - RES share in gross final energy consumption for WEM and WPM scenario, incl. RES credits
The projected evolution of RES-share in final energy consumption under the WPM scenario from 2021
to 2040 is provided in Figure 86. An assumption is made whereby all planned policies and measures
supporting the deployment of RES are discontinued post-2030. This would imply a significant decline
in RES technologies reliant on government support, such as solar PV, biofuels in the transport sector
and solar water/heat pump water heaters; this is indicative of the financial barriers which are foreseen
to continue to inhibit the deployment of RES in the absence of Government intervention. The
consumption of ambient heat from air-to-air heat pumps and electric and plug-in-hybrid electric
vehicles would continue to increase post-2030 as their uptake is not dependent on continued
government support. The assumption taken for the period post-2030 should not be interpreted as
Malta’s unwillingness to follow the road towards decarbonisation. Additional policies and measures
for the period post-2030 will be outlined and included in the next NECP reporting cycle.
0.9%
7.3%
7.5%
7.1%
9.3%
11.0%
11.5%
8.8%
10%
10.3%
0%
2%
4%
6%
8%
10%
12%
14%
2010 2016 2018 2020 2022 2024 2026 2028 2030
RES share in gross final energy consumption (incl. credits)
2020 RES target WEM WPM RES credits
179
Figure 86 - RES technology consumption under WPM in 2021-2040, GWh
RES Heating & Cooling
Air-to-air heat pump technology is projected to have the most significant contribution. The
affordability of this technology combined with the continual rise in expectations of thermal comfort
ensures sustained growth, also reflecting demographic changes. For instance, the number of heat
pumps imported in 2016 and 2017 was above average due to increased activity in the construction
sector in response to a significant influx of inwards migration. Split-unit heat pumps in the residential
sector are projected to increase from 204,500 at the end of 2017 to 461,000 in 2030 and 556,000 in
2040. This increase is driven by a growth in the number of households, and the number of units per
dwelling. Projections take into account current trends of installation and average unit size, as well as
a saturation level with regards to the number of air-to-air units per household, depending on the type
and size of dwelling. In the non-residential sector, installation of new heat-pumps is also expected to
increase in line with the country’s economic activity. The construction of new or modernisation of
office spaces, hotels, and other commercial spaces will create a sustained demand for the importation
of air conditioning systems employing heat pump technology. In all sectors, it is assumed that units
will be replaced once they reach their end-of-life. As it is difficult to gather information on the
efficiency of new units, a conservative approach is being taken when calculating consumption of
ambient heat by assuming a minimum level of 2.7 SPF (SCOP
net
)
99
.
For the Final NECP, Malta also analysed the existing and projected capacity of VRF systems. A
conservative approach was taken in this respect whereby VRF systems installed pre-2009 were not
taken into account when calculating the contribution of ambient heat from VRF systems due to
uncertainty on the share of units imported pre-2009 having a SCOP level of 2.7, that is, the minimum
level set out in Commission Decision 2013/114/EU on calculating renewable energy from heat pumps.
99
This is in line with the default values outlined in Commission Decision 2013/114/EU which established the guidelines for Member States
on calculating renewable energy from heat pumps.
0
100
200
300
400
500
600
700
800
900
1000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
GWh
RES technologies under WPM, 2021-2040
Biofuels Heat pumps Waste-to-Energy Biomass Solar PV SWH/HPWH EV
180
In contrast to air-to-air heat-pumps, solar water heaters (SWH) and heat pump water heaters (HPWH)
are unlikely to be installed if grant schemes to promote uptake are not maintained. Due to their high
capital cost (compared to alternatives such as electric boilers) and long payback period, it is assumed
that no new or replacement units will be installed without Government intervention. Indeed, in recent
years, Malta has observed a downward trend in the sales new SWH installations despite the availability
and promotion of grants. Post-2020, Malta is planning to launch new schemes to incentivise the
installation of SWH/HPWH in the residential sector, amounting to 800 units/year until 2030.
Biomass imports, used for space heating by a small number of households, is not projected to increase
significantly; capital costs for such infrastructure is relatively high, and heating by LPG heaters and
heat-pumps is likely to remain the preferred mode of space heating. Bioliquid use in industry in the
period 2011-2017 was rather low and is projected to be negligible in the post-2020 period.
Generation of renewable energy in the form of heat from waste treatment is projected to remain
largely constant. It is assumed that waste treatment plants reaching their end-of-life will be replaced
by ones having a similar capacity.
RES-Electricity
Based on Malta’s Waste Management Plan, the generation of renewable electricity from waste-to-
energy plants is expected to remain largely stable in the projected period, amounting to approximately
14 GWh/year until 2040. However, this will continue to constitute only a small percentage of RES-E in
Malta.
The projected capacity of solar PV from 2021-2030, based on the Government’s commitment to
maintain increased penetration of solar PV through financial support schemes and other measures to
facilitate uptake was already presented under Section 2.1.2. Under the WPM scenario, solar PV is
expected to reach its technical potential of 266 MWp by 2030, as shown in Figure 87. Although not
modelled, additional PV capacity post 2030 could be achieved through repowering.
Figure 87 - PV capacity for WEM vs WPM scenarios, 2010-2030, GWh
-
50
100
150
200
250
300
PV Capacity (MW)
WEM WPM
181
RES-Transport
The transport sector is dependent on policies and measures, namely the substitution obligation on
fuel importers to achieve the sectoral RES-T target. As the substitution obligation on fuel suppliers
does not extend beyond 2030 under Malta’s WPM scenario, it is assumed that suppliers will no longer
continue to import biofuels which are generally more expensive than their fossil fuel counterparts per
unit of energy content. Therefore, contribution of biofuels in transport from 2030 onwards is expected
to be nil under the WPM scenario. National strategies and action plans in the transport sector are
committed to encourage the uptake of electric vehicles in Malta, while the new regulations on CO
2
emission standards post-2020 imposed on vehicle manufacturers is expected to result in a higher
uptake of electric vehicles in Malta.
Dimension Energy Efficiency
Under the WPM scenario, both the primary energy consumption as well as the final energy
consumption achieve lower levels as compared to the WEM scenario outlined in Section 4. This is a
result of the expected implementation of Malta’s planned policies and measures. Figure 88 below
shows projections for primary energy consumption and final energy consumption for all sectors. The
transport sector will retain the largest share in final energy consumption, remaining at more than half
of the total consumption throughout the projected period. Transport is split into road transport and
other transport which includes aviation and navigation. Due to the geographical isolation of Malta and
the importance of the services sector, including tourism, the potential for decreasing energy
consumption in the aviation and inland navigation sectors remain very low. The charts that follow
show an in-depth analysis of final energy consumption in each of the sectors.
Figure 88 - Projections for energy consumption under WPM, ktoe (incl. heat pumps)
0
200
400
600
800
1,000
1,200
2017 2020 2025 2030
ktoe
Energy Efficiency: FEC and PEC (WPM)
Other transport
Road transport
Services
Residential
Industry
Agriculture
Primary energy consumption
182
Transport Sector
Figure 89 - Projections for final energy consumption for road transport sector, split by fuel, under the WPM
scenario, ktoe
As can be seen in Figure 89 above and as already mentioned in other sections, the substitution
obligation on fuel suppliers is only projected till 2030 under the WPM scenario (no obligation post
2030).
The increase in the share of electricity in transport is due to a projected increase in the share of electric
vehicles in the road transport vehicle fleet. This is a result of the Regulations imposing CO
2
emission
standards on vehicle manufacturers for passenger cars, light commercial vehicles and heavy-duty
vehicles post-2020, the impact of which is expected to be reflected in the profile of new vehicles
imported in Malta. National strategies and action plans in the transport sector are also expected to
encourage and incentivise the uptake of electric vehicles in Malta. The stock of electric and plug-in-
hybrid electric vehicles is expected to increase from just above 1,000 in 2020 to almost 26,000 by
2030, comprising 6% of the projected total fleet.
0.00
50.00
100.00
150.00
200.00
250.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
Road Transport, ktoe
Biofuels Diesel Electricity Petrol
183
Figure 90 - Final energy consumption in aviation sector under WPM scenario, ktoe
Figure 90 illustrates the projected final energy consumption for aviation under the WPM scenario. The
increase in aviation kerosene is in line with the projected increase in tourism, set to continue over the
upcoming two decades. This increase is expected to be steeper between 2018 and 2023 and then start
to plateau from 2024 onwards.
Figure 91 - Final energy consumption in inland navigation sector, split by fuel under WPM scenario, ktoe
Figure 91 provides projections for final energy consumption under the WPM scenario for navigation
by fuel type. In 2020, the Gozo-Valletta fast ferry is set to start operations, leading to a sudden increase
in gasoil consumption between 2019 and 2020. The sharp reduction projected to occur between 2026
and 2027 is due to the expected completion of the Malta-Gozo tunnel which will have a direct impact
on the number of trips carried out by vessels operating between Malta and Gozo. From 2027 onwards,
it is assumed that the current ferries will be substituted with one vessel having 1/6 of the current total
vessels' capacity and double today's vessels' fuel efficiency. The fast ferry between Gozo and Valletta
0
50
100
150
200
250
2018 2020 2022 2024 2026 2028 2030 2040
Aviation kerosene
0
2
4
6
8
10
12
14
16
2018 2020 2022 2024 2026 2028 2030 2040
Inland Navigation, ktoe
Diesel Gasoil Petrol
184
is assumed to operate for a maximum of seven years, and thus would see its operations ending in
2027.
Economic Sectors
Figure 92 - Final energy consumption in industry, split by fuel under the WPM scenario, ktoe
Figure 92 includes projections for final energy consumption by industry under the WPM scenario.
Whilst most fuels are projected to remain largely constant, electricity and gasoil consumption is
projected to continue increasing.
Figure 93 - Final energy consumption split by fuel for services sector under WPM scenario, ktoe
Figure 93 illustrates projections for final energy consumption under the WPM scenario for the services
sector. Electricity consumption in this sector is projected to increase until 2030, along with certain key
fuels such as gasoil and LPG; the consumption of other conventional fuels is set to remain largely
constant.
0
10
20
30
40
50
60
0
2
4
6
8
10
12
14
16
2018 2020 2022 2024 2026 2028 2030 2040
ktoe electricity
ktoe fuel
Industry, ktoe
Biogas (thermal)
Diesel
Fuel Oil
Gasoil
LPG
Kerosene
Electricity
0
20
40
60
80
100
120
140
160
0
2
4
6
8
10
12
14
16
18
20
2018 2020 2022 2024 2026 2028 2030 2040
ktoe electricity
ktoe fuel
Services, ktoe
Diesel
Fuel Oil
Gasoil
Kerosene
LPG
Petrol
Electricity
185
Figure 94 - Final energy consumption split by fuel for agriculture sector under WPM scenario, ktoe
Figure 94 shows final energy consumption under the WPM scenario in the agriculture sector. As
agricultural output is expected to remain largely constant, no significant change is expected in terms
of its energy consumption. A slight decrease is observed over the time horizon, largely owing to the
natural replacement of technologies with more efficient ones, owing to availabilities on the market.
As energy consumption of this sector is minimal, the effect of any planned measures is expected to be
negligible.
Residential Sector
Figure 95 - Final energy consumption split by fuel in residential sector under WPM scenario, ktoe
Figure 95 displays projections for final energy consumption under the WPM scenario for the
residential sector. The consumption of electricity in this sector is set to continue increasing, owing to
a projected increase in the number of dwellings, as a result of population growth, as well as an increase
in the average consumption per household. The latter is a result of expected changes in lifestyle and
expected thermal comfort, particularly in terms of the installation and use of new devices, such as
0.00
0.50
1.00
1.50
2.00
2.50
2018 2020 2022 2024 2026 2028 2030 2040
ktoe
Agriculture, ktoe
Biodiesel
Diesel
Electricity
Gasoil
Kerosene
LPG
Petrol
0
20
40
60
80
100
120
0
2
4
6
8
10
12
14
16
18
2018 2020 2022 2024 2026 2028 2030 2040
ktoe electricity
ktoe fuel
Households, ktoe
Ambient heat
Biomass
Gasoil
LPG
Solar thermal
Electricity
186
white appliances and air-to-air heat pumps. The slow decline in solar thermal energy, more evident
from 2030 onwards, is a result of a significant number of these units reaching their end-of-life and not
being replaced at a sufficiently fast rate until 2030; after 2030, no additional SWH are installed and no
replacements take place without policy support. The increase in ambient heat is a result of a growing
installation rate of air-to-air heat pumps as people’s thermal comfort levels are expected to increase.
Dimension Energy Security
Power Generation
The projected growing energy demand until 2040 under the ‘With Planned Measures’ scenario implies
the need for more energy in the coming decade and beyond, which in turn will require more
generation capacity and/or imports over the interconnector, as well as a more flexible electricity
system. These developments will have a direct impact on how Malta shall continue to ensure the
desired level of security of supply. It is also expected that towards the end of the next decade Malta
will find it increasingly challenging to meet its electricity demand with the current and projected
(under WPM) power generation infrastructure. In these projections, it was assumed that any existing
infrastructure reaching its end-of-life before 2040 will be replaced by a system with a similar
generation capacity and technical profile. The projected electricity generation by source, split into
conventional gas-fired power plants, net imports over the electricity interconnector, renewables and
the projected waste-to-energy facility are shown in Figure 96.
Figure 96 - Electricity generation by source under the WPM scenario, 2018-2040
Figure 97 portrays the energy mix used to generate electricity in Malta in terms of primary energy
consumption under the WPM scenario for 2017 and projections for 2020, 2025 and 2030. The energy
mix in 2017, based on natural-gas, electricity imported over the interconnector and renewables will
be largely sustained over the projected period. An increased penetration of renewables, i.e. solar
photovoltaics, in the electricity generation mix is expected, as well as the introduction of a thermal
Waste-to-Energy facility in 2024.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
GWh/annum
Electricity generation by source (WPM)
Conventional Net interconnector Renewables Waste
187
Since 2017, local generation plants at the Delimara Power Station are fired by natural gas. Gasoil-fired
capacities are available as back-up in case of emergencies (having black-start capabilities), for use
during maintenance of main plants and to meet exceptional peak loads. Energy system modelling tools
used for the development of the WEM and WPM scenarios for Malta’s NECP assume that electricity
demand needs to be met by the main power plants, electricity imported over the interconnector and
renewable/distributed energy sources. Backup plants are not included when determining the order of
merit by the dispatch model, and therefore gasoil consumption post-2017 is projected to be zero until
the end of the projected period. In practice, there will be situations where the use of gasoil-fired units
is required such as in emergency situations or in cases where other sources are not available. However,
the amount of gasoil consumed is expected to be negligible.
Figure 97 - Energy mix for electricity generation under WPM scenario (%)
Primary Energy Consumption
The projected energy mix for Malta under a WPM scenario, calculated as the share of fuels in Malta’s
primary energy consumption is shown in Figure 98. Increasing energy demand will lead to higher
consumption of natural gas (by power plants). On the other hand, a decreasing share of oil products
in the energy mix is mainly due to the increasing number of electric vehicles on the road which will
slowly shift the demand away from petrol and diesel. WPM projections also show an increasing share
of renewables until 2030. Policies and measures focusing on the deployment of RES, outlined in the
renewables section of the Plan, have a time-horizon until 2030 as they are expected to contribute to
the 2030 RES target as stipulated in the Renewable Energy Directive. No further policies are assumed
post-2030 (support for RES is discontinued at end of 2030). This is reflected in Malta’s WPM
projections, whereby the share of renewables after 2030 starts decreasing, due to the discontinuation
of the biofuels substitution obligation and the end-of-life of Solar PV and SWH technologies within
Malta’s energy modelling framework. This assumption should not be interpreted as Malta not
remaining committed to implement measures for the promotion of RES after 2030 and the long-term
goal of decarbonisation. Policies and measures in the area of RES for the period after 2030 will be
included as part of the next NECP cycle.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2020 2025 2030
Energy mix for electricity generation (WPM)
Gasoil/fuel oil Natural gas RES Electricity (interconnector) Waste
188
Figure 98 - Projected energy mix as a share in PEC under WPM scenario (%)
Net import dependency
Due to the specificities of Malta’s geographical isolation and lack of domestic energy sources, Malta’s
net import dependency is expected to remain high under the WPM in the whole projected period,
although decreasing slightly due to the continuous deployment of renewables, which constitute the
sole indigenous source of energy. Import dependency is also expected to decrease slightly in 2024,
when the new Waste-to-Energy facility is expected to be commissioned. A comparison of the
projected net import dependency under the WEM and the WPM scenarios until 2030 is provided in
Figure 99 while the projected primary consumption of imported energy sources is shown in Figure
100.
Figure 99 - Net import dependency of WEM and WPM scenarios (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2020 2025 2030 2035 2040
Energy mix as share in PEC, incl. electricity imports (%) (WPM)
Oils Natural Gas RES Electricity (interconnector) Waste
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
100.0%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Net import dependency, %
WEM WPM
189
The role of oil products is expected to decrease, primarily in the transport sector, reflecting a more
efficient vehicle fleet and a shift towards electrification in the road transport sector. Natural gas
demand will increase to meet the expected growth in electricity demand required to satisfy a thriving
economy. Due to the absence of district heating and cooling networks in Malta, the consumption of
LPG by the residential sector for heating purposes is assumed to remain stable throughout the
projected period as it is expected that new dwellings will be equipped with electric heating systems
using heat pump technology. This also reflects the inherent difficulty in offering a viable alternative to
households and other users of LPG for cooking purposes, and is one of the major barriers to further
decarbonise the heating and cooling sector in Malta.
Figure 100 - Projected consumption of imported energy sources (WPM), GWh
The energy market concentration is likely to remain high in the projected period. Due to the size of
Malta’s energy system, the existence of a sole electricity supplier and distribution system operator
and the small number of actors and fuel suppliers operating on the Maltese market, the concentration
of market suppliers will remain high in Malta.
The projected evolution of primary energy consumption of domestic energy sources is portrayed in
Figure 101. The consumption of domestic sources, all of which are renewable except for electricity
generation from waste incineration, is expected to grow in the period until 2030 and beyond. The
figure shows the expected increase in the consumption of ambient heat, which is linked to the
increased deployment of heat pump technology, especially in households. Electricity and heat
produced from biogas in existing CHP waste-to-energy plants is expected to remain stable. Solar PVs
will remain the largest domestic energy source.
0
2,000
4,000
6,000
8,000
10,000
12,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh/annum
Projected consumption of imported energy sources (WPM), GWh
Biofuels Biomass Diesel Gasoil Fuel oil
Natural Gas Kerosene Petrol Aviation Kerosene LPG
190
Figure 101 - Projected consumption of domestic energy sources (WPM), GWh
Dimension Internal Energy Market
As repeated under the relevant sections of the Internal Energy Market dimension, there are no
wholesale electricity or gas markets in Malta. Enemalta performs the functions of a DSO and
constitutes the sole electricity supplier to final consumers. There is no electricity transmission system
in Malta and hence no transmission system operator (TSO). Malta was also granted derogations from
the application of provisions on unbundling of DSO, third party access and free choice of supplier
under the new Electricity Market Directive (EU) 2019/944. Under the energy system modelling
framework used for the development of the NECP, these factors are taken into consideration and
assumed to continue to apply throughout the projected period. Projections of electricity
interconnectivity, including the indicators of urgency of action are already outlined in Section 2.4.1. of
the NECP, while the key relevant indicators for natural gas, such as gas demand and supply, the
electricity generation mix and energy mix are included under the Energy Security dimension of the
Plan. The sole use of natural gas in Malta is in the power generation sector.
The projected installed power generation capacity by source under the WPM scenario is shown in
Figure 102. This amounts to the current and expected operational capacity in Malta, excluding gas-oil
fired stand-by capacity. The currently existing power generation capacities running on natural gas at
the Delimara Power Station, as well as the stand-by generation capacity running on gas-oil is expected
to remain largely the same. In the projected capacities, it is assumed that any power generation facility
reach its end of life would be replaced by an equivalent plant. Solar PV capacity will increase
throughout the projected period until 2030, reaching 266 MW under the WPM scenario. Under
Malta’s energy modelling it is assumed that Government support in the form of policies and measures
post-2030 is not continued, therefore RES deployment wanes significantly after 2030. In 2024, it is
also expected that the waste incinerator plant comes into operation.
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh/annum
Projected consumption of domestic energy sources (WPM), GWh
Ambient heat Biogas (electricity + heat) Solar PV Solar thermal Waste
191
Figure 102 - Installed capacity by source under WPM scenario (MW), 2018-2040
Projections of peak electricity demand
100
and annual gross consumption of electricity, based on an
average climatic year
101
, under both the WEM and WPM scenario are portrayed in Figure 103. It is
expected that peak demand, expressed in MW, will continue to increase throughout the projected
period, in line with increased population and economic activity, as well as a result of uneven grow
rates of certain end-use services, such as the projected increase in electric consumption for space
cooling. Likewise, gross electricity consumption will increase in the projected period. As illustrated,
peak demand and gross electricity consumption are expected to be lower under the WPM scenario as
a result of implementation of policies and measures. Gross electricity consumption under the WPM
scenario is projected to be higher than under a WEM scenario from 2035 onwards, primarily as a result
of electrification in transport.
100
Includes final electricity demand, distribution losses and electricity consumed on-site at power station.
101
Projections were made assuming seasonal variations in temperature correspond to the thirty-year average, thus, the
impact of yearly changes to temperatures were not taken into account (eg. a warmer than average year will result in an
increased demand for space cooling).
0
100
200
300
400
500
600
700
800
900
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
MW
Installed Capacity by fuel (WPM)
Gas-fired units Dual-fuel Interconnector Solar PV Waste incinerator
192
Figure 103 - Peak load (MW) and gross electricity consumption (GWh) under WPM and WEM scenario, 2018-
2040
A preliminary assessment of the impact of temperatures on electricity demand was undertaken, with
the scope of quantifying the potential increase in hourly peak demand in the case of deviations from
the climatic norm, particularly on peak days. Based on an analysis of thirty-years of temperature data,
three daily temperature profiles were defined: (i) climatic norm; (ii) high temperatures with a 2.3%
probability of occurring in thirty years; and (iii) high temperatures with a 0.1% probability of occurring
in thirty years. In Malta, temperature extremes are bound to occur during the summer months.
Should these temperature extremes coincide with the day of annual peak demand (normal year), the
hourly peak demand has been estimated to increase by 15-20% (2.3% probability) or up to 30-35%
(0.1% probability). Annual estimates are shown in Figure 104. It is to be noted that this is a preliminary
assessment which is subject to revisions and updates. A separate assessment of the potential variation
in projected peak demand as a result of temperature will also be undertaken through the ongoing
Electricity Supply Study.
350
400
450
500
550
600
650
700
750
2,000
2,200
2,400
2,600
2,800
3,000
3,200
3,400
3,600
3,800
4,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
MW
GWh
Hourly Peak Demand and Gross Electricity Consumption, WEM
and WPM
WEM Gross electricity consumption (GWh) WPM Gross electricity consumption (GWh)
WEM Peak load (MW) WPM Peak load (MW)
193
Figure 104 WPM Annual Peak Demand (MW) under different temperature conditions: (i) normal climate; (ii)
extreme temperature with a 2.3% probability; and (iii) extreme temperature with a 0.1% probability.
Projections of electricity imports and exports over the interconnector with Sicily are presented in
Table 34. Although the interconnector provides for the option of bi-directional flow, it is expected that
Malta would be a net importer of electricity from Italy, with electricity exports reaching only
approximately 2-6 GWh/annum, similar to current levels of exports, throughout the period, which can
be considered as negligible. The imports of electricity through the interconnector are expected to
decrease in 2025 due to the projected commissioning of the gas pipeline whereby, based on the
assumed ENTSO-G prices of natural gas, domestic generation of electricity by the gas-fired power plant
facilities would be higher in the order of economic merit more frequently than the interconnector
(whose prices fluctuate on an hourly basis)(Figure 105). As a result, import volumes over the
interconnector in 2030 are projected to be similar to those expected in 2020.
Table 34 - Electricity imports and exports under the WPM scenario, GWh
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2035
2040
Exports
-5
-4
-2
-2
-2
-2
-6
-6
-6
-6
-4
-4
-3
0
0
Imports
418
454
598
635
660
685
619
334
373
393
469
508
549
669
872
-
100
200
300
400
500
600
700
800
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
MW
WPM Hourly Peak Demand under different temperature conditions
Peak - normal temperatures Peak - 2.3% probability Peak - 0.1% probability
194
Figure 105 - Electricity imports and exports over the interconnector (WPM), 2018-2040
The energy modelling framework used for the development of Malta’s Final NECP also examined the
peak electricity demand ‘shortfalls’ under the projected period for both the WEM and WPM scenarios,
therefore situations when Malta’s existing and projected power generation capacity would be
insufficient to meet the peak electricity demand projected for an average climatic year. Under the
WEM scenario, Malta would be expected to start experiencing challenges meeting its peak demand
starting from 2027, while under the WPM scenario Malta would face such difficulties in the period
post-2030 (Figure 106). This is due to the additional generation capacity provided by the waste-to-
energy incinerator and the deployment of solar PV facilitated by Government policies.
In the case of variations from the climatic norm, shortfalls in meeting the electricity demand are likely
to be exacerbated as a result of increased load and these may be experienced earlier than 2027 (WEM
scenario) or 2030 (WPM scenario). In the case of high temperature extremes with a 2.3% probability
in a thirty-year period occurring on a day of peak electricity demand, it is estimated that there is the
potential for slight hourly shortfalls to occur from 2021 onwards. The potential of experiencing
shortfalls under a scenario of high temperature extremes with a probability of 0.1% exists from 2018,
the first year of modelling (Figure 107).
However, it must be noted that the shortfalls (Figure 106) were projected assuming that back-up
capacity (circa 190MW derated gasoil-fired OCGT/CCGT units) is not utilized. In extreme situations it
is also possible to overload the interconnector with an additional 100 MW for short periods. However,
relying on either of these sources to meet peak demand would be in breach of the N-1 system
adequacy standard. The Electricity Supply Study will assess possible solutions to tackle any future
shortfalls, and shall also validate and update as necessary the methodology used to estimate these
peak events.
-100
0
100
200
300
400
500
600
700
800
900
1,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
GWh
Electricity imports and exports (WPM)
Exports Imports
195
Figure 106 - Peak electricity demand shortfall expressed in MW and total number of hours, WEM and WPM
Figure 107 - Shortfalls (MW) at peak hours under different temperature conditions: (i) normal climate; (ii)
extreme temperature with a 2.3% probability; and (iii) extreme temperature with a 0.1% probability.
In addition to the above, Malta will begin to face potential instances of grid stability issues and
imbalances in light of the projected increasing share of renewable production in the electricity
generation mix. Figure 108 compares the projected minimum load on Sundays (as the weekday with
the lowest hourly peaks) and the concurrent PV generation. Hourly PV generation is expected to make
up more than half of the electricity generation during these hours by 2021, increasing to more than
60% by 2030. In view of the small size of Malta’s electricity grid and highly variable cloud coverage,
there may be instances where Enemalta would have to cater for the unforeseen loss of more than half
the generation capacity at certain hours. This would have serious implications on interconnector
imbalances, as well as load shifting and the required start-up of conventional generating power plants.
-
200
400
600
800
1,000
1,200
-
20
40
60
80
100
120
Total number of hours
MW
Shortfalls in MW and hours, WEM and WPM
WEM peak shortfall (MW) WPM peak shortfall (MW)
WEM hours of shortfall WPM hours of shortfall
0
50
100
150
200
250
300
350
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
MW
Shortfalls at peak hours under different temperature
conditions
WEM 2.3% prob WPM 2.3% prob WEM 0.1% prob
WPM 0.1% prob WEM Shortfall WPM Shortfall
196
Figure 108 - Projected minimum Sunday load and concurrent PV generation under WPM scenario (MW)
Projected development of energy prices
The evolution of Malta’s wholesale electricity price was projected by taking into account the impact
of increased PV installations, the commissioning of the planned waste-to-energy incinerator, and
projected natural gas and EU ETS prices.
Figure 109 illustrates the projected trends in electricity prices under the WEM and WPM scenarios, as
well as gas prices. The projected increase in wholesale electricity prices in nominal terms is driven by
the projections of regional gas prices provided by ENTSO-G at the Italian Virtual Trading Point PSV
102
.
With the commissioning of the Malta-Gela pipeline by 2025, connecting Malta to the Trans-European
Gas Network, it is assumed that Malta will be subject to the same wholesale gas prices within the
region from 2025 onwards. The projected EU ETS carbon price provided to Member States by the
European Commission was incorporated into future wholesale electricity prices based on the
efficiency of local generation plants. The effect of the growing EU ETS carbon price becomes more
pronounced post-2025 and 2030, when a substantial increase in carbon price is expected (Table 35).
Based on current projections of gas and EU ETS prices, wholesale electricity costs are projected to
increase from €
2016
0.072/kWh in 2018 to €
2016
0.075/kWh in 2024, after which they would decrease to
€
2016
0.063/kWh in 2025 should the MTGP pipeline come into operation. A higher penetration of solar
PV and the commissioning of a waste-to-energy plant, as expected under the WPM scenario, will result
in the wholesale price of electricity falling to €
2016
0.060/kWh in 2025 and remaining below the WEM
trend throughout the policy period. In 2030, the impact of these policies manifests as a projected
difference of €
2016
0.003/kWh. The projected wholesale prices should not be considered a forecast.
102
PSV - Punto di scambio virtuale.
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
MW
Minimum electricity load vs. concurrent PV generation
Minimum Sunday load Concurrent PV generation
197
Figure 109 - Projected wholesale electricity and gas prices from 2018-2040, EUR (2016)/kWh.
Table 35 Projected EU ETS carbon prices according to EU Reference Scenario 2016
2015
2020
2025
2030
2035
2040
EU ETS carbon prices (€'16/ t of CO2)
7.8
15.5
23.3
34.7
43.5
51.7
Typical annual consumption of households (kWh/year)
The following set of figures provide an overview of the projected typical annual consumption of
electricity of households in Malta under the WPM scenario, split by three different household types
which were defined for the purposes energy modelling undertaken for the NECP:
- Households with heat pumps used for heating & cooling;
- Households with heat pumps used for cooling only;
- Households with no heat pumps;
The distribution of these three types of households under the WPM scenario is shown in Figure 110.
It is expected that the proportion of households with heat pumps will continue increasing until 2040,
without the need for any policy intervention incentivizing the deployment of heat pumps in the
residential sector. It is also expected that the share of households using air-to-air heat pumps for both
cooling and heating purposes will continue increasing.
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
€[2016=100]/MWh
WEM WPM Gas
198
Figure 110 - Share of households with heat pumps by end-use and households with no heat pumps under
WPM scenario (%)
The typical annual electricity consumption profile of households with heat pumps for both heating
and cooling purposes, split by type of end-use is provided in Figure 111. The representative household
in this category is expected to consume on average slightly more than 5,000 kWh/year, with space
cooling and space heating contributing to 24% and 18% of the total consumption of the household in
2030, respectively. Appliances and lighting will remain the highest consuming end-use for all three
types of households. The total electricity consumption of households with heat pumps used for
cooling purposes is expected to reach just under 5,000 kWh/year by 2030. Space cooling is expected
to be the second most-important end-use for this type of household (Figure 112). Figure 113 shows
the electricity consumption of households without heat pumps, which remains in the range between
3,000 – 3,500 kWh/year per representative household. In this type of household, electricity is used
predominantly for lighting & appliances and water heating, while electricity used for space cooling
and space heating is almost negligible; it is assumed that space heating in these households is
exclusively LPG-based.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
Share of households with heat pumps (WPM)
HH with heat pumps for H&C HH with heat pumps for cooling only
HH with no heat pumps
199
Figure 111 - Typical annual electricity consumption of households with heat pumps for heating and cooling
under WPM (kWh/year)
Figure 112 - Typical annual electricity consumption of households with heat pumps for cooling only under
WPM (kWh/yr)
-
1,000
2,000
3,000
4,000
5,000
6,000
20182019202020212022 20232024202520262027 2028202920302035 2040
kWh/hh/year
Typical annual electricity consumption of HH with heat pumps
for H&C (WPM)
Water Heating Space Heating Space Cooling Cooking Appliances & Lighting
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
kWh/hh/year
Typical annual electricity consumption of HH with heat pumps
for cooling only (WPM)
Water Heating Space Heating Space Cooling Cooking Appliances & Lighting
200
Figure 113 - Typical annual electricity consumption of households with no heat pumps under WPM (kWh/yr)
Sensitivity analysis
As mentioned in the introduction to this section, two sensitivity scenarios were modelled to highlight
the potential resulting range of outcomes of key indicators in the case of different exogenous factors,
namely: (i) higher than expected levels of energy efficiency of technologies on the market; and (ii)
higher than expected rates of electrification.
The first scenario diverges from that outlined in the NECP in its assumption of the rate of overall
efficiency increase in all sectors due to exogenous market factors. This was simulated using the
projected rates of efficiency provided by the European Commission defined as ‘ordinary, improved,
advanced or best’, applied in the following manner to different sectors:
• In the industrial and services sector, it was assumed that additional or replaced technologies
from 2018 onwards were of an ‘improved’ standard as opposed to an ‘ordinary’ standard.
Certain technologies in the industrial sector were assumed to be of an ‘advanced’ standard,
such as those used for space heating and water heating, as existing stock is likely to be
relatively old and therefore the increase gained in efficiency from these new appliances would
be greater.
• In the residential sector, a gradual increase in the efficiency of all appliances and lighting was
assumed from 2018 onwards, reaching a moderate 10% overall increase by 2040.
• It was assumed that imports of air-to-air heat pumps from 2021 onwards had a COP of 3.5,
increasing to a COP of 4 in 2031. This is equal to and slightly higher than the ‘best’ standard
assumed by European Commission. This assumption was adopted as the COP of heat-pumps
on the Maltese market has tended to be high in recent years and this trend is likely to
continue. As a result, the efficiency of the overall stock of heat-pumps in the residential and
non-residential sector increases by a factor of 18% by 2030 and 36% by 2040.
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
kWh/hh/year
Typical annual electricity consumption of HH with no heat pumps
(WPM)
Water Heating Space Heating Cooking Appliances & Lighting
201
• Under the WEM and WPM scenarios of the NECP, no improvements in the efficiency of ICE
vehicles and EVs were assumed post-2020; the rates of improvement assumed by the
European Commission were deemed to be highly optimistic according to national experts. The
impact of assuming such efficiency rates was tested in this sensitivity by adopting ‘improved’
rates of improvement in new ICEs and EVs by 2030 and ‘advanced’ by 2040. The number of
hybrid vehicles within the fleet was increased by 10%. The stock of vehicles in each category
was otherwise kept the same as under the NECP WEM and WPM scenarios.
The factors outlined above were introduced in both the WEM and WPM of this sensitivity scenario as
the changes are solely a result of a more optimistic view of the market as opposed to the introduction
of additional PAMs.
The second scenario tested impacts on the energy system as a result of faster rates of electrification
for certain end-uses in all sectors, particularly for space heating, water heating and cooking.
Projections of the energy system outlined in the NECP are based on a largely constant (and minimal)
rate of electrification stemming from national historical trends. A faster shift towards electrification
would have implications for a number of key areas of the energy system, and thus was introduced as
a sensitivity by adopting the following assumptions:
• In the industrial and services sector, it was assumed that additional load from 2018 onwards
for space heating, water heating and cooking was met by electric appliances (heat-pumps for
space heating and electric boilers for water heating) as opposed to fuel-based technologies.
Existing stock reaching its end-of-life was replaced by these electric appliances. Fuel
consumption for water heating in laundries, whether in hotels or specific entities such as dry
cleaners, was excluded from electrification as it is assumed that current technologies would
continue to be used in view of the high temperatures required for such processes.
• In the residential sector, the rate of electrification of space heating (from individual gas
heaters to heat pumps) and cooking (gas cookers to electric cookers) was assumed to occur
at a higher rate than current trends, at an average of 2% per annum. In this scenario and the
WEM and WPM of the NECP, it is assumed that all new dwellings exclusively use electric
devices (heat pumps or resistance heaters) for space heating.
• In order to continue to ‘stress’ the power generation system, this scenario also assumed a
higher percentage of electric vehicles in the fleet.
The factors outlined above were introduced in both the WEM and WPM of this sensitivity scenario as
such changes could result from a combination of unforeseen market factors and behavioural trends.
The sensitivities modelled show there may be a range in terms of the RES-share achieved by 2030, as
displayed in Figure 114. However, deviation from the WPM scenario described in the NECP is minimal,
with the highest RES-share reaching 12% in 2030 under a scenario of higher efficiency of new
technologies.
202
Figure 114 - Share of RES in gross final consumption of energy (GFCoE) under the different sensitivity scenarios,
%
Under all three scenarios, the indicative increase in RES-H&C by an annual average of 1.1% is not
achieved (Figure 115). As noted in Section 2.1.2, this is a challenging sector to address. This is perhaps
further highlighted by Sensitivity Scenario 2; even assuming a faster and more significant shift towards
electrification of end-uses such as space heating, water heating and cooking, Malta will still fall short
of its indicative trajectory for RES-H&C during the second half of 2021-2030. In particular, the expected
increase in consumption of fuels in the economic sectors, driven by Malta’s projected levels of GDP
and population growth, outstrips the effect of decarbonisation of the heating and cooling sector
through increased electrification and thus its effect on RES-H&C. A higher than expected rate of
efficiency in new and replaced technologies is not projected to have a significant impact on RES-H&C.
5%
6%
7%
8%
9%
10%
11%
12%
13%
2017 2020 2025 2030 2035 2040
RES Share in GFCoE (%)
NECP WPM Scenario 1 (EFF)
Scenario 2 (ELEC) 2020 MT Target
203
Figure 115 - The trajectory of increase in RES-H&C under the different sensitivity scenarios, %
Figure 116 shows the peak load under the different sensitivities and it can be noted that both scenarios
show a resulting significant impact. Under a scenario with higher levels of efficiency, peak load
increases at a slower pace and even decreases slightly after 2030, as a larger portion of the stock of
technologies is replaced (through natural turnover) with systems of higher efficiency. As a result, it is
projected that there will be no hours where installed generation capacity cannot meet national
demand. By contrast, under a scenario of increased electrification, the peak load is projected to be
higher than that of the WPM scenario presented in the NECP. Similarly, shortfalls in meeting peak
electricity demand will occur earlier and with a higher level of frequency.
It must be noted that these projections do not take into account the effect of deviations from average
temperatures. In years when temperatures are cooler or warmer than the climatic average, the
additional impact on electricity demand for space heating and cooling can be significant, particularly
during the summer months where electricity demand is consistently high as a result of seasonal factors
(such as tourism) and high levels of electric space cooling.
Furthermore, the dispatch model does not account for the requirement of maintaining the power
system to the desired level of adequacy (N-1) and therefore an assessment to determine when the
system is effectively under stress would need to take into account not only any unmet demand but
also the available backup capacity, any demand flexibility as well as the adopted system adequacy
standard. The ongoing study on Malta’s future electricity supply shall provide better insight into
possible options which shall be considered to ensure that future electricity demand is duly met.
20%
22%
24%
26%
28%
30%
32%
34%
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
RES-H&C Trajectory (%)
NECP WPM Scenario 1 (EFF)
Scenario 2 (ELEC) NECP Indicative Target
204
Figure 116 - Projected peak load and number of hours with electricity shortfall under the different sensitivity
scenarios
Assessment of policy interactions at least until the last year covered by the plan in
particular to establish a robust understanding of the impact of energy
efficiency/energy savings policies on the sizing of the energy and to reduce the risk
of stranded investment in energy supply
Projections indicate that, notwithstanding the planned implementation of a number of energy
efficiency measures, energy demand shall continue to rise. The plan does not envisage investments
in additional conventional power plants over the 2021-2030 time window, although more detailed
options, and subsequent decisions would be taken once the Electricity Supply Study is completed
(Q3/2020), and the capability of the electricity demand model to account for unusual climatic effects
(deviating from the normalized year) is validated. Investments in renewables also need to take into
account the capacity of Malta’s small grid to further integrate intermittent sources, keeping in mind
the similarity between the local demand profile and that of Sicily, towards which excess electricity
could potentially be exported.
The only significant energy supply investment being proposed is the gas pipeline linking Malta to Sicily.
The project is at the design stage, and elements are being included to ensure that the pipeline would
be able to cater for the transmission of biogas and alternative gases such as hydrogen in the future.
This will ensure that the pipeline will contribute towards Malta’s long term decarbonisation strategy
and provide the basis for conversion of conventional plants to run on green gases.
Assessment of interactions between existing and planned national PAMs and Union
climate and energy policy measures
Malta’s policies and measures included under the WEM and WPM scenarios are aligned to the Union
energy and climate acquis. Existing and planned policies are expected to be implemented to
contribute and fulfil objectives and targets at the national, EU and international level. PAMs under the
decarbonisation dimension are set out to contribute to the Paris Agreement and the Effort Sharing
0
200
400
600
800
1000
1200
1400
1600
450
500
550
600
650
700
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040
Number of hours
Peak load (MW)
Peak Load & Number of hours with shortfall
Shortfalls NECP WPM Shortfalls Scenario 1 Shortfalls Scenario 2
NECP WPM Scenario 1 (EFF) Scenario 2 (ELEC)
205
Regulation, while policies to promote the deployment of renewables align with the requirements of
the Renewable Energy Directive. This can also be said for energy efficiency policies and the Energy
Efficiency Directive, including policy measures in the remaining dimensions, such as obligations
stemming out of the Gas Security of Supply Regulation.
Table 36 below shows the relevance of individual policies and measures of the WPM scenario within
each Energy Union dimension. Most policies and measures featured under the WPM focus on the
decarbonisation dimension largely due to the large scope of this dimension, which comprises of
policies falling under the climate acquis, as well as renewable energy.
The energy security, internal energy market, and R&I and competitiveness dimensions all form new
reporting obligations under the Energy Union Governance framework. In view of this, it can be said
that there is some disparity between the number of measures affecting the decarbonisation and
energy efficiency dimensions, and the other three dimensions of the Plan. The R&I dimension is
comprised of one policy: E.2.10 Development of R&I Strategy for Energy & Water. It must be noted
that this sector-specific strategy in itself entails further sub-measures which will boost R&I in the area
of energy and water. This is also relevant for PAM E.2.9 Gas Security of Supply within the Energy
Security dimension, which includes Malta’s obligations within the Security of Gas Supply Regulation,
such as the risk assessment and other preventive and emergency measures; and policy documents
related to decarbonisation such as the T.2.17 National Bicycle Strategy, the Electromobility Plan, or
the Waste Management Plan.
Table 36 – Policy interactions under WPM scenario between Energy Union dimensions
PAM
number
Name of Policy or Measure
Decarbo
nisation
EE
Energy
Security
IEM
R&I and
competi
tiveness
E.2.1
Financial support schemes for Solar PV
✓
✓
✓
✓
E.2.2
Solar Water Heaters / Heat Pump Water
Heater Scheme
✓
✓
E.2.3
Energy efficiency: electricity tariffs
✓
✓
E.2.4
Support Scheme for Services and Industry
✓
E.2.5
Energy Efficient Street Lighting
✓
E.2.6
Projects in primary water network and
wastewater treatment plant
✓
E.2.7
Biofuels Substitution Obligation (2021-2030)
✓
✓
E.2.8
Acquisition of renewable energy credits from
other Member States
✓
E.2.9
Gas Security of Supply
✓
✓
E.2.10
Development of R&I Strategy for Energy and
Water
✓
✓
C.2.1
Management of Farm Slurries in the Maltese
Islands
✓
C.2.2
WtE Facility
✓
✓
✓
C.2.3
Waste Management Plan 2020 - 2030
✓
206
T.2.1
Removing traffic bottlenecks and reducing
severance between urban communities -
Marsa Road Project
✓
T.2.2
Remove traffic bottleneck at Addolorata
junction, Marsa
✓
T.2.3
Road and infrastructure projects
✓
T.2.4
Malta - Gozo Tunnel
✓
T.2.5
Implement Public Transport Quality Corridors
(PTQC)
✓
T.2.6
Improvement of Ferry Landing Places
✓
T.2.7
Introduction of a low-emission zone (LEZ) in
the 'hub'
✓
T.2.8
Smart Parking System for Valletta
✓
T.2.9
Fast passenger ferry link between Malta and
Gozo
✓
T.2.10
Free Transport for Youths, Students, and
school children
✓
✓
T.2.11
Increase use of Intelligent Transport Systems in
traffic management
✓
T.2.12
National bicycle sharing scheme
✓
T.2.13
Last-Mile Delivery for Valletta
✓
T.2.14
Implementation of a cycling corridor
✓
T.2.15
Car-Sharing Scheme
✓
T.2.16
Sustainable Urban Mobility Plan for Valletta
✓
T.2.17
National Bicycle Strategy and Action Plan
✓
T.2.18
Introduction of electric buses in Gozo
✓
T.2.19
Continuation of EV Grants and Electromobility
Action Plan
✓
✓
✓
5.2 MACROECONOMIC AND, TO THE EXTENT FEASIBLE, THE HEALTH, ENVIRONMENTAL,
EMPLOYMENT AND EDUCATION, SKILLS AND SOCIAL IMPACTS OF THE PLANNED
POLICIES AND MEASURES
Introduction
In the framework of the NECP, an impact assessment has been conducted to look at what possible
outcomes the future configuration of the (energy) system of Malta can have under a ‘With Planned
Measures’ scenario. In particular, the assessment was designed and approached like a strategic
assessment (at plan/scenario level) with the aim to evaluate the integrated/combined responses of
the planned measures against a number of additional relevant criteria (economic, social, and
environmental impacts) which are not included in other sections of the impact assessment and the
NECP.
The impact assessment framework has been designed and shared with the different
departments/ministries which are owners of the policies and measures included in the NECP and are
responsible for the decision-making process. The Ministries are also represented on the Inter-
Ministerial Steering Committee on the development of Malta’s NECP. Their specific feedback
207
(collection of data and information) have formed the basis for the comprehensive analysis of the
impacts presented in this chapter.
The ultimate objective of such assessment is to control and verify the robustness of the package of
planned measures against their impacts thus providing analytical evidence of the trade-offs related to
adopting and implementing the measures as well as the barriers and complexities with respect the
implementation of the planned policies and measures.
Criteria and Metrics
The approach in the preparation of the IA has been driven by a number of goals and conditions. In
particular, the method employed for the IA aimed:
- to be able to inform local decision makers about relevant impacts of the projected
energy/climate system;
- to be transparent and unbiased by construction, so to make clear potential benefits and
drawbacks of the evolution of the Maltese system, while providing a space for a simple
evaluation of multiple “conflicting
103
” criteria, and contribute to the continuous/wider
learning process;
- to provide an instrument for further applications through a “dual” mode of use: more
quantitative-oriented and/or qualitative);
- to be fully consistent with the modelling approach used for the analysis and projection of the
energy and climate variables in section 4 in terms of overall rationale outlined in the figure
below;
103
The selection of criteria (type of impacts), and in particular of potentially “conflicting” criteria is key for a robust IA.
Step 1
WEM
Analysis of the evolution of
energy and climate variables
under a predefined socio-
economic storyline, including
the "existing" PaMs only.
Step 2
WPM
Analysis of the evolution of
energy and climate variables
under the same predefined
socio-economic storyline,
including the "planned"
PaMs (together with the
existing).
Step 3
IA (WPM)
Analysis of the impacts of the
evolution of the system
under the WPM.
Figure 117 - NECP modelling rationale
208
Figure 117 indicates that the WEM and WPM scenarios are modelled in a cascading fashion. No
feedback from the IA is explicitly returned to step 2 for redesigning or adjusting the planned measures,
or for changing the key underlying assumptions
104
.
This section provides an “ex-post” assessment of the impacts on the system in a manner that identifies
the key causalities; the outcomes of the analysis; and the coherence of the IA results with the key
elements and assumptions taken to model the WPM scenario.
Impacts and Definitions
Following the NECP template requests and based on the elements emerged during the problem
structuring and the discussion with the experts, six criteria have been selected for the impact
assessment
105
.
Some of the identified relevant impacts can be expressed in quantitative terms (out-of-model
calculations), while others are more semi-qualitative by nature. The inclusion of semi-qualitative
metrics (performances based on expert judgments) provides additional space for a comprehensive
evaluation of the causalities.
Table 37 - Impacts Assessed: Economic (ECO), Social (SOC), Environmental (ENV), Others (OTH).
Impacts/Criteria
Brief Description
Theme
Economic impact
Effect of PAM on the local economy, including business
development, competitiveness and inward investment.
ECO
Technical
constraints
Level of technical issues associated with PAM, including
complexity and skills required for implementation.
OTH
Social
acceptability
Acceptability of PAM to local citizens.
SOC
Legal issues
Legal and regulatory issues which may constitute a barrier to the
implementation of PAM.
OTH
Quality of life
issues
The effect of the PAM on the citizens’ quality of life in terms of
health, comfort, social and environmental impacts.
SOC/ENV
Engagement Process
In order to collect all qualitative and quantitative data necessary to carry out an Impact Assessment
of the WPM, an “Impact Assessment Matrix” was designed to collect PAM-specific information related
to each criterion outlined in Table 37. This matrix included a section designed to collect data feeding
into quantitative metrics and a section designed to collect data feeding into semi-qualitative metrics
through a five-points Likert scale.
104
For instance, the macroeconomic drivers have been assumed to be almost “rigid” against the analysed impacts/PaMs and
therefore no GDP / GVAs changes are taken into consideration as response to the simulation of the planned measures.
105
Including quantification of the social cost of carbon was discussed. However, it was determined that the period covered
by the plan (short to medium-term) and the geographic scope (national) were incompatible with the period of impact (long
term) and geographic area of impact (global).
209
For all the semi-qualitative questions, a short explanation of the metric being assessed was provided
to assure improved clarity and transparency. For the semi-qualitative portion of the assessment, short
meetings were scheduled with Government ministries responsible for individual PAMs that make up
the WPM scenario. These meetings were used to present the Impact Assessment data collection
process and to explain how the Impact Assessment matrix should be filled-in. Technical officers were
given the opportunity to seek assistance is interpreting and completing the data collection task.
Following an iterative process, the final set of PAM-specific data was used to compile an analysis of
the expected impacts of the package of policies that make up Malta’s WPM scenario.
Impacts and Metrics
In order to measure the expected impacts of the chosen criteria, the following data was collected:
Economic Impact:
a. Quantitative: Job creation (based on annual labour units
106
) divided into temporary
(construction, installations) and permanent (maintenance, operation).
b. Semi-Qualitative: Effect of PAM on local economy, incl. business development,
competitiveness and inward investment - 5-points metric (from desirable to non-desirable
state): Major improvement to economic development / Significant improvement to economic
development / Minor improvement to the national economy / No economic impact / Reduced
economic development.
Technical Constraints:
a. Quantitative: Time-to-realisation (months, years)
b. Semi-Qualitative: Two sets of 5-points metrics to define technical constraints will be used
(from desirable to non-desirable state):
• Level of technical issues associated with PAM measured in terms of complexity of the
project: No technical difficulties / Minimal technical difficulties / Some technical
concerns / Significant technical issues / Major technical obstacles.
• Level of technical issues associated with PAM measured in terms of level of skills
required: Only standard skills required/ Mainly standard skills required/A mix of
standard and medium skills required/ Significant high skills required/Major high skills
required.
Social Acceptability:
106
Full-time equivalent (FTE) = number of full-time equivalent workers required per year to fulfil the workload introduced by
the PAM. When using FTE a full-time employee working a 40 hour week for the whole year would be equivalent to 1, whereas
a person working 20 hours per week would be equivalent to 0.5.
210
a. Semi-Qualitative: Acceptability of PAM to local citizens - 5-points metric (from desirable to
non-desirable state): very high societal acceptance / high societal acceptance / Average
societal acceptance / Low societal acceptance / Very low societal acceptance.
Legal Issues:
a. Semi-Qualitative: Legal and regulatory issues which may constitute a barrier to the
implementation of the PAM – 5-points metric (from desirable to non-desirable state): No legal
issues / Minimum legal issues / Minor legal issues / Significant legal issues / Major legal and
regulatory issues.
Quality of Life Issues:
a. Semi-Qualitative: the effect of the PAM on the citizens' quality of life in terms of health,
comfort, social and environmental impacts - 5-points metric (from desirable to non-desirable
state): Major quality life improvement / Significant quality life improvement / Minor quality
life improvement / No effect on quality of life / Decrease quality of life.
Prior to the analysis of results, it is important to clarify that Section 5.2 results apply to a sub-set of
PAMs reported in Malta’s integrated PAMs template. Primarily, several PAMs were excluded from this
analysis because the current suite of models used to generate Malta’s WPM trajectories could not
simulate their effect. This allowed Section 5.2 to remain consistent with the results presented in
Section 5.1. Table 38 identifies which sub-set of PAMs were modelled.
211
Table 38 - Modelled WPM PAMs
PAM
number
Name of Policy or Measure
PAMs
modelled in
Section 5.1
E.2.1
Financial support schemes for Solar PV
✓
E.2.2
Solar Water Heaters / Heat Pump Water Heater Scheme
✓
E.2.3
Energy efficiency: electricity tariffs
✓
E.2.4
Support Scheme for Services and Industry
✓
E.2.5
Energy Efficient Street Lighting
✓
E.2.6
Projects in primary water network and wastewater
treatment plant
✓
E.2.7
Biofuels Substitution Obligation (2021-2030)
✓
Methodological Note
In order to model the way decision-makers who were engaged in the analysis perceived the measurement
and semi-qualitative scale of the criterion, a so-called ‘preference function’ was associated to each
criterion. The key idea was to transform the collected inputs (performance of the PAM, from 1 to 5)
through a normalisation of the preference levels measured from 0 to 1, so to make them additive and
calculate an overall (unique) indicator of performance of the PAM against all the criteria.
A Gaussian preference function was used to transform the data “d” (collected in the 1 to 5 scale) into a
normalised 0 to 1 preference level:
 


The “threshold” point “s” was selected to set the inflection point of the Gaussian curve (different per
each criterion).
0.0
0.2
0.4
0.6
0.8
1.0
P(D)
D
GAUSSIAN (GENERIC)
212
E.2.8
Acquisition of renewable energy credits from other
Member States
✓
C.2.2
WtE Facility
✓
C.2.3
Waste Management Plan 2020 - 2030
✓
T.2.1
Removing traffic bottlenecks and reducing severance
between urban communities - Marsa Road Project
✓
T.2.2
Remove traffic bottleneck at Addolorata junction, Marsa
✓
T.2.3
Road and infrastructure projects
✓
T.2.4
Malta - Gozo Tunnel
✓
T.2.5
Implement Public Transport Quality Corridors (PTQC)
✓
T.2.6
Improvement of Ferry Landing Places
✓
T.2.7
Introduction of a low-emission zone (LEZ) in the 'hub'
✓
T.2.8
Smart Parking System for Valletta
✓
T.2.9
Fast passenger ferry link between Malta and Gozo
✓
T.2.10
Free Transport for Youths, Students, and school children
✓
T.2.11
Increase use of Intelligent Transport Systems in traffic
management
✓
T.2.12
National bicycle sharing scheme
✓
Key findings
This section of the text summarises the key findings of the impact assessment process. It provides a
summary of the results and findings of the analysis of semi-qualitative data (economic impact,
technical constraints, social acceptability, legal issues, and quality of life) as well as the analysis of
quantitative data (economic impact).
Semi-Qualitative Analysis
The Semi-qualitative data was compiled into a single score which encapsulates the overall
performance of the package of WPM PAMs in terms of economic, social, environmental, and other
impacts. Figure 118 indicates that average overall ranking. This indicates that although policy-makers
should expect some challenges when implementing the measures under the WPM scenario, the
overall outlook is positive and that after accounting for potential impact trade-offs, implementing the
entire set of PAMs will bring about a net-positive effect.
213
Figure 118 - Overall semi-qualitative score of modelled WPM PAMs
Figure 119 shows a representation of PAM-specific multivariate scores generated through the data
collected from the Impact Assessment Matrix where for each criterion, 1 is the best and 5 is the worst
score. This figure presents the scores of the best performing and worst performing (critical) PAM and
visualise the presence of trade-offs, even for the best performer. Based on the compilation of the
multivariant analysis score, the measure which is most likely to have a negative impact is E2.8, the
acquisition of renewable energy credits from other Member States to reach and maintain the national
RES target as required by the Renewable Energy Directive (2009/28/EC). This representation of
collected data allows policy-makers to identify impact trade-offs for each PAM. Taking PAM 2.8 as an
example, the data clearly indicates that although the measure is simple to implement due to very low
levels of technical complexity, it performs poorly in terms of social acceptability. This reinforces
Malta’s commitment to use cooperation agreements for statistical transfer of renewable energy
credits as a measure of last resort; opting to prioritise measures which, irrespective of their increased
levels of technical or legal complexity, would generate direct net-positive benefits for Malta.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All Modelled PAMs
WPM IMPACT - MODELLED PAMS
214
Figure 119 - Individual PAM semi-quantitative score
Figure 120 indicates the improvement in the WPM’s overall score should renewable energy statistical
transfer agreements not be utilised. In fact, only a marginal improvement in performance is achieved.
This minor effect is due the impact trade-offs associated with each PAM. Having said that, the removal
of PAM 2.8 brings about the highest improvement in the overall score.
Figure 120 - Overall Semi-qualitative score of WPM PAMs excluding the Critical PAM
As tabulated above, several PAMs were not modelled when estimating the energy and climate
trajectories presented in Section 5.1. Therefore, Figure 121 indicates the WPM’s overall achieved
exclusively by unmodeled PAMs.
1
2
3
4
5
Technical Constraints -
Skills required
Economic Impact
Social Acceptability
Quality of Life (health,
comfort, social and
environmental)
Legal and Regulatory
Issues
Technical Constraints -
Complexity
Individual PAM analysis - Best and Worst Performers
E.2.8 T.2.13
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All Modelled PAMs excl. critical PAM
All Modelled PAMs
WPM IMPACT - MODELLED PAMS
215
The results indicated that the group of unmodelled PAMs score significantly higher in terms of
economic, social, and environmental impact than the group of modelled PAMs. Therefore, this implies
that although the effect of these measures on Malta’s energy and climate systems could not be
estimated, it is very clear that they represent a sub-set of measures which should bring about
significant net-positive effects when measured using alternative metrics. In conclusion, the expected
benefits from the sub-set of unmodelled PAMs should be included in future iterations of Malta’s
energy and climate trajectories. Moreover, a dedicated multi-criteria analysis of unmodeled PAMS
(Figure 121) shows that their implementation is expected to generate significant benefits in economic,
social, and environmental terms with very limited trade-off effects between the six semi-qualitative
criteria assessed.
Figure 121 - Semi-Qualitative Score of all Unmodelled WPM PAMs
Quantitative Analysis
Macroeconomic projections used as exogenous variables within the energy and climate-system
models designed to output results for the WEM and WPM scenarios of this Plan do not explicitly
account for the PAMs designed in the WPM scenario but account for the overall (aggregate)
trajectories expected. Having said that, government expenditure as a percentage of ex-ante projected
GDP is expected to peak around 1.7% in 2021 (see Section 5.3). Therefore, given the low magnitude
of this metric, it is reasonable to assume that aggregate macroeconomic projections capture the effect
of the WPM.
In order to capture the effect of the WPM on the macroeconomy, the Impact Assessment Matrix was
used to collate information on the number of jobs created as a result of implementing the WPM
scenario. In terms of job creation, annual quantitative data in “full-time equivalent” terms were
collected. Officers in charge of individuals PAMs were asked for estimates split into temporary work
created, such as construction and installation), and permanent work created, such as operation and
maintenance. Although several simplifying assumptions had to be taken in order to determine the
number of additional jobs created over the period covered by the NECP, a general finding is that none
of the PAMs are expected to generate job losses. Therefore, in Malta’s case, the WPM is only expected
to create additional economic opportunities. This aligns with Malta’s current economic boom, driven
by higher levels of domestic demand, partially due to higher levels of disposable income resulting from
a strong labour market. Figure 122 indicates that once the initial boom of temporary work associated
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All Unmodelled PAMs
WPM IMPACT - UNMODELLED PAMS
216
with the WPM PAMs levels-off, the WPM is expected to generate approximately 200 permanent jobs
(work created in terms of full-time equivalent) towards the end of the upcoming decade.
Figure 122 - WPM Impact on job creation
In order to gauge the effect of the expected increase in jobs created by the planned measures, values
presented in Figure 122 were expressed as a percentage of cumulative projections for the year-on-
year increase in the number of gainfully employed workers in Malta between 2021-2030 (obtained by
a third study, and used as a driver for some sectoral projections). By utilising the cumulative effect of
additional jobs created in Malta in the denominator, the metric accounts for the effect of jobs which
were created in one period and which remain existing in other periods of the numerator. It is
important to note that projections for the number of gainfully employed do not account for part-time
workers whereas the data collected through the Impact Assessment Matrix is the full-time equivalent
of both full-time and part-time workers. Having said that, this ratio shows that although the initial
boom of temporary jobs created by modelled WPM PAMs has a significant effect when compared to
the overall jobs created in that year, the overall effect of jobs created vis-à-vis the cumulative jobs
created is low. This provides further justification as to why the macroeconomic indicators feeding into
the models used to project the WEM and WPM scenarios were estimated ex-ante rather than
iteratively.
Conclusions
The analysis of semi-qualitative data indicated that the PAMs set out under Malta’s WMP scenario
bring about an overall positive effect in terms of impacts on Malta and its citizens; even when
accounting for their potential detrimental technical, legal, and environmental effects. In fact,
estimates of overall scores is always closer to the ideal positive point of (100%) than to the worst-case
scenario (0%). Moreover, in terms of macroeconomic impacts, the WPM follows a ‘no-regret’
approach where the impact of the PAMs on job creation is positive for each projected year. It is also
0%
2%
4%
6%
8%
10%
12%
14%
0
100
200
300
400
500
600
700
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
WPM Job Creation - Modelled PAMs
Temporary Jobs Created
Permanent Jobs Created
Jobs created as a % of cumulative increase in gainfully occupied
217
expected that the WPM would not bring about any adverse effect on the overall Maltese economy
and would, to a limited extent, support further economic expansion.
The analysis also indicates that PAMs which could not be captured in the analysis presented in Section
5.2 are in fact the best performers in terms of overall economic, social, and environmental impact.
Therefore, unmodeled PAMs are expected to bring about a positive effect on Malta’s energy and
climate performance. However, there is uncertainty as to the scale of this expected improvement over
and above what is presented in Section 5.1 of the Plan.
Strategic Environmental Assessment
Following the completion of the Draft NECP in December 2018, it was deemed necessary to subject
the NECP to a Strategic Environmental Assessment (SEA). In line with Subsidiary Legislation 549.61,
which transposes EU Directive 2001/42/EC, an SEA is required when a policy or programme is expected
to have a significant effect upon the environment. The Energy & Water Agency, responsible for the
development of Malta’s NECP, commissioned AIS Environment Ltd. through the public procurement
system (EWA/TD/2/2019) to carry out the task of conducting the SEA.
The SEA process was initiated in 2019; however, it is not expected to be completed before the second
quarter of 2020. Therefore, there is a misalignment between the timeframes for the completion of
the Final NECP (end of 2020) and the SEA process, and thus the integration of the outcomes of the
SEA in the Final NECP. At the time of drafting of the Final NECP, the scoping stage of the SEA, including
a period of consultation, was completed and work on the environmental assessment was initiated.
Due to this, the main results and outcomes of the SEA on Malta’s NECP are not yet included hereunder.
The finalised SEA report will be made public in line with the SEA Regulations upon completion.
The scoping stage identified the environmental factors to be assessed in relation to the NECP. During
the reviewing process, the following key environmental themes were identified:
- Air quality;
- Biodiversity;
- Climate change;
- Cultural heritage
- Energy & water;
- Human health;
- Landscape;
- Transportation and infrastructure;
- Waste and resource management;
Research will first be conducted to establish an environmental baseline, following which the effects
of the NECP policies and measures on the environmental baseline will be assessed qualitatively vis-à-
vis the relevant themes. Monitoring schemes will be proposed for each of the environmental factors
in the baseline. Public and stakeholder consultation are considered an important element of the SEA
process and are given the appropriate attention during the SEA analysis.
218
5.3 OVERVIEW OF INVESTMENT NEEDS
Existing investment flows and forward investment assumptions
The “Impact Assessment Matrix” used to collect data feeding into quantitative and semi-qualitative
metrics used in Section 5.2 was used to collect information related to the costs borne by Government
under a WPM scenario. Therefore, technical experts responsible for the design and implementation
of individual WPM PAMs submitted the following information for each PAM under the WPM:
The “Impact Assessment Matrix” used to collect data feeding into quantitative and semi-qualitative
metrics used in Section 5.2 was used to collect information related to the costs borne by Government
under a WPM scenario. Therefore, technical experts responsible for the design and implementation
of individual WPM PAMs submitted the following information for each PAM under the WPM:
1) Investment costs (capital expenditure);
2) Operating and maintenance costs (operating expenditure); and
3) Replacement costs (when applicable).
When aggregated, the total undiscounted cost borne by Government amounts to approximately EUR
1.66 billion for the period between 2018 and 2030. Figure 123 depicts how costs would be distributed
between 2018 and 2030. When estimating the cost as a percentage of GDP, the expenditure is
expected to peak at approximately 1.7% of real GDP in 2021. As portrayed by the figure, costs borne
by the Government as a result of the implementation of the package of policies and measures under
the WPM is most prevalent during the first 5 years of the next decade. This implies a short-to-medium
term implementation period of the WPM scenario, which, however is expected to be supplemented
by long-term oriented measures once the Low Carbon Development Strategy is completed.
Figure 123 - Costs borne by Government under a WPM scenario
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
€-
€50,000,000
€100,000,000
€150,000,000
€200,000,000
€250,000,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
WPM Costs Borne by Government (2016=100)
Undiscounted Investment Cost as a % of GDP Undiscounted Cash Flows
219
Although the graph indicates that Government expenditure will decrease towards the end of the
decade, it is important to note that this analysis does not include PAMs which fall under the WEM and
which might have a significant impact on Government expenditure, such as Malta’s connection to the
European gas grid through a pipeline with Italy. Therefore, the cost borne by Government is expected
to be significantly higher than what is reported here. Furthermore, PAMs financed privately due to
planned concession agreements, such as the Malta-Gozo fixed link, are excluded as these are not costs
borne by the Government. It is also envisaged that additional policies and measures would be
identified in the foreseen update of Malta’s NECP in 2024-2025.
Financial burden as a result of the WPM Scenario
As part of the analysis of investment needs, estimates of the expected direct financial and voluntary
financial burden of three energy-related PAMs was carried out (Table 39). This is dependent on the
affected agent
107
for each PAM. A direct financial burden is a burden imposed on an agent as a result
of the PAM while a voluntary burden is a burden which the agent chooses to bear as a result of the
PAM.
Malta intends to reach its renewable transport target of 14% by 2030 via the implementation of an
obligation on fuel suppliers to blend biofuels with diesel. Since the blending obligation will be reflected
in higher fuel prices, this direct financial burden will be borne by the vehicle owners purchasing the
fuel. As shown in Table 39, the burden of this measure per vehicle owner per annum is expected to
remain rather low, while allowing Malta to meet its obligations under the Renewable Energy Directive.
A voluntary financial burden is expected to be borne by an ‘agent’ willing to invest in a certain
technology. In the analysed sub-set of PAMs below, the voluntary financial burden was estimated for
the deployment of solar PV and solar water heater/heat pump water heaters, technologies which the
government is committed to support in the period from 2020 to 2030. The expected costs borne by
the residential sector (i.e. household/individual investing in a PV system) and the non-residential
sector (i.e. entity investing in a PV system) are expected to maintain a decreasing trend in the
projected period, in line with the assumed decreasing CAPEX costs attributed to residential and non-
residential PV systems in the upcoming decade. As regards the financial support scheme for Solar
Water Heaters/Heat pump Water Heaters, the household/individual investing in such a system will be
required to finance 20% of the cost of such a system, which is assumed to be constant until 2030.
Table 39 - Direct and Voluntary Financial Burden of a sub-set of PAMs
Direct Financial Burden
Agent
2021
2025
2030
E.2.7 - Biofuels Substitution
Obligation (2021-2030)
Vehicle Owner
€
19.24
€
22.29
€
31.35
Voluntary Financial Burden
Agent
2021
2025
2030
E.2.1 - Financial support
schemes for Solar PV
Residential
€
6,439.91
€
5,539.47
€
4,611.05
107
Agent involved is defined as the representative "player" who is assumed to pay for the cost of the change introduced by
the PAM, such as the State, citizen, representative household, representative industry per sector, representative supplier of
energy or commodity, etc.
220
E.2.1 - Financial support
schemes for Solar PV
Non-Residential
€
37,132.69
€
36,200.43
€
35,035.12
E.2.2 - Solar Water Heaters /
Heat Pump Water Heater
Scheme
Residential
€
330
€
330
€
330
Assessment of additional costs related to the design and assumptions of Malta’s WPM scenario
Complementary to the above section, which analysed the costs borne by the Government to
implement the planned policies and measures under the WPM scenario, the following section
examines the costs associated to the expected technology change, both as a result of the natural
replacement and evolution of technologies within the respective sectors, and as a result of policies
and measures targeting the deployment of renewable and more efficient technologies, such as
support schemes for solar PVs, solar water and heat pump water heaters, and energy efficiency
measures in the services and industry sectors. This analysis was conducted for both the WEM and
WPM scenarios, which provides insight into both absolute and relative investment needs, i.e. the
additional required investment costs to implement the WPM on top of the WEM. Nevertheless, it’s
important to note that within the framework of Malta’s NECP the ‘With Existing Measures’ (WEM)
scenario is considered to be unrealistic due to the assumed expiry of policies and measures and
government support in the period post-2020 and does not correspond to the designated scenario for
the period post-2020. By virtue, emphasis is placed on quantifying the investment needs of the WPM
scenario, which is reflective of the expected evolution in the period until 2030. This analysis does not
aim to provide a precise estimate of the total cost associated to technology change, but rather assess
the order of magnitude of the expected investment should the implementation of Malta’s WPM
scenario be carried out. It shall also serve as a signal to policy-makers and investors alike whereby it
illustrates the degree of expected investment needs in the various end-use sectors and within pre-
defined technology clusters.
A modelling-based approach was adopted to deliver this assessment. It employs directly sectoral
bottom-up models to generate the impact assessment to assess current technology stocks and future
requirements. The resulting investment needs account for:
• Natural replacement rate of existing technologies (i.e. technology substitution);
• New stocks due to increasing energy demand;
• Policy-driven technology stocks, namely investments driven by specific policies accelerating
substitution or technology options;
Key assumptions were made regarding technology purchasing costs, average technical lifetime, and
in some cases, the annual average load factors. The assumed technology costs are generally in line
with European Commission assumptions, however, when available, few adjustments on specific
technologies were made (i.e. heat pumps) as to better capture the specificities of the Maltese market.
These costs assumptions also consider a certain level of efficiency uptake, which are consistent with
projections under the WEM and WPM scenarios. This analysis is limited to energy-related
technologies, while other investments, such as planned road infrastructure projects, the gas pipeline
project, etc. are not included within the assessment.
221
Reported results assumes that the whole investment take place at the exact time of which a new
capacity is installed (overnight). This representation is not in line (hence not fully comparable) with
the methodology employed by other modelling analyses, which generally assume annualised
investment cash flows, but was preferred as to explicitly track financing requirement streams and
identify possible peaks which may constitute barriers to the implementation of planned policies.
When relevant, discount rates of 3.5% are applied for discounting. The assumed technology costs are
described in more detail under Section 4.1.iv. of the Plan.
Figure 124 - Total investments by scenario, mil. €
2016
Total annual investment costs as a result of the technology change related to the design of Malta’s
WEM and WPM scenarios are presented in Figure 124. While the average annual investment costs of
the WEM scenario in the period between 2018 and 2030 would amount to 562 mil. €
2016
, the average
estimated investment costs of the WPM scenario in the same period would reach 597 mil. €
2016
. Annual
investment costs are relatively stable throughout the projected period under both scenarios, with the
first half of the decade experiencing levels of increased investment.
0
100
200
300
400
500
600
700
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031-2035
2036-2040
€2016 millions
Investments by scenario
WEM WPM
222
Investment costs by sector
Figure 125 - Investment costs by sector under the WPM scenario, mil. €
2016
Figure 125 provides a visual representation of the investments under the WPM scenario split by end-
use sectors and the waste management sector. The transport sector is expected to maintain the
largest share in terms of estimated investments due to the expected high substitution rate of vehicles
tied with a continuous rate of electrification envisaged in the sector. Under Malta’s WPM scenario it
is expected that the number of electric vehicles would reach approximately 26,000 by 2030. The
average annual investment costs taken up by the transport sector between 2018 and 2030 are
estimated at around 343 mil. €
2016
. In terms of order of magnitude of investment costs, the transport
sector is followed by the services and residential sectors, which fall on average just below and just
above the mark of 100 million/annually, respectively. Largely due to the size of Malta’s industrial
sector and the absence of heavy industry, the annual average investments in industry in the period
between 2018 and 2030 are estimated at 36 mil. €
2016
per annum. Under the WPM scenario,
investments in the waste management sector are envisaged to arise in 2024 as a result of the
commissioning of the new waste-to-energy facility.
In 2019 we are estimating higher investment costs due to increased deployment of solar PV systems
primarily in the services sector complemented to a lesser extent by additional PV installations in the
residential sector. Increased investment in 2030 is an outcome of the installation of new appliances
linked to the growth of the services sector, as well as the replacement of an increased number of
appliances in the services sector which were installed in 2018 and which have reached the end of their
lifetime.
This analysis does not take into account the estimation of investment costs related to maintaining the
adequacy of Malta’s power system. Subject to results from the ongoing study commissioned by the
Government, it is foreseeable that investments will be required to ensure system adequacy and to
0
100
200
300
400
500
600
700
€2016 millions
WPM investments by sector
Transport Services Residential Industry Waste
223
further integrate solar PV systems, which are projected to reach a capacity of 266 MW by 2030. The
degree of investment needs covering this aspect would be estimated upon completion of the study.
The investments as a share in the various sectors taken as snapshots in 2020, 2030 and 2040 are
illustrated in Figure 126. The share of investment costs in the various sectors will remain largely
constant in the period until 2030. After 2030, a ‘no-policy’ approach is assumed under the WPM
scenario and therefore the share of investment in the services and residential sectors starts dwindling
due to the lack of uptake of solar water and heat pump water heaters and solar PVs. However, this
approach should not be seen as contradictory to Malta’s commitments on decarbonisation. Additional
policies and measures focusing on the period post-2030 will be included in the next NECP cycle.
Figure 126 - Investment shares by sector under the WPM scenario (%)
Additional investments in WPM compared to WEM
Additional investments under the WPM scenario as compared to the WEM are presented per sector
in Figure 127. The largest investment corresponds to the development of the Waste-to-energy facility
in the period until 2024. In the short-term, investments are also envisaged in the residential, services
and industrial sectors, while the element of electrification of the road transport vehicle fleet will be
intensified towards the end of the next decade and beyond. Increased investments in the industrial
sector in 2021 and subsequent years can be attributed to envisaged projects in the primary water
network and wastewater treatment plants carried out by the government water utility company.
53%
57%
67%
21%
21%
17%
15%
16%
13%
5%
5%
4%
6%
0%
20%
40%
60%
80%
100%
2020 2030 2040
Investment share in WPM
Transport Services Residential Industry Waste
224
Figure 127 - Additional investments under the WPM scenario
The figure above is supported by the overall discounted investments in the period 2018 – 2040
between the WEM and the additional investments in the various sectors in the WPM, which is
illustrated in Figure 128.
Figure 128 - Overall discounted investments as a difference between WEM and WPM
-10
0
10
20
30
40
€2016 millions
Additional investments in the WPM
Transport Services Residential Industry Waste
225
Investments by technology and technology cluster
The outcome of the analysis of the investment costs in the WPM scenario for a selection of mitigation
technologies is illustrated in Figure 129. The investment costs for heat pumps are expected to remain
significant and largely stable throughout the projected period. Investments in solar PV technologies
are expected to be most prevalent in the first half of the next decade, as towards the end of the decade
solar PV will begin to reach its technical potential. In line with the expected total investments split by
sector, electric vehicles are expected to assume the role of the largest technology type with respect
to investment flows.
Figure 129 - WPM investments split by technology type, 2018-2040
Another element of the analysis of investment costs included observing the expected flow of
investments by technology clusters. This required pre-defining the technology clusters, which were
split into the following four categories:
- Renewables
- Energy efficiency
- Electrification
- Waste
The net increased investment costs in the WPM split by technology clusters is reported in Figure 130.
The spike of net investments under the energy efficiency cluster in the first examined years is
attributed to projects in the primary water network and wastewater treatment, complemented by
additional investments for the roll-out of more efficient street lighting, expected to be finalized in
2021. The large investment costs in the waste sector is attributed to the development of the Waste-
to-energy facility. Renewable technologies will be driven by the availability of financial support and
limited towards the second half of the decade by the assumed technical potential. Electrification will
0
200
400
600
800
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031-2035
2036-2040
€2016 millions
WPM investments split by technology
EVs Heat pumps
Solar PV Solar Th & HP Heaters
Total investments
226
be dominated by the uptake of electric vehicles, linked with the expected increased efficiency as a
result of stricter CO
2
regulations.
Figure 130 - Net increased investment in the WPM scenario split by technology cluster
The exploration of investment costs also enabled the comparison of investments in contrast with
specific macroeconomic indicators. The share of investment costs as a percentage of Malta’s projected
GDP for the WEM and WPM scenarios is presented in Figure 131. While at the beginning of the next
decade the share of investments will amount to approximately 5% of GDP, it is projected that this
share will have a decreasing trend. This should not be read as a decreasing trend in investments in
technology change, but rather as continued annual increase in economic growth throughout the
projected period.
Figure 131 - Total investments as a share of GDP (%)
-10
0
10
20
30
40
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031-2035
2036-2040
€2016 millions
Net increased investments in the WPM
Renewables Energy efficiency Electrification Waste
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Total investments/GDP (%)
WEM WPM
227
The average annual investment per household is illustrated in Figure 132. The average investment per
household in the period 2018-2030 under the WPM scenario is estimated to be at 500 €
2016
.
Households are expected to invest in the installation of new and replacement of old appliances. As
expected, the average annual investment of a representative household will be higher in the WPM
scenario when compared to the WEM. This is a result of the uptake of solar PV technology and solar
water and heat pump water heaters. The annual investment in households also includes investments
in heat pump technology, which remain constant between the WEM and WPM scenario as their
uptake is not policy-driven.
Figure 132 - Annual investment in households (€
2016
/household)
In the transport sector, the estimated average investment made by a vehicle owner in the period 2018
– 2030 under the WPM scenario amounts to almost 850 €
2016
. This level of investment cost in the
transport sector is expected to be to a large extent sustained in the projected period, primarily as a
result of the expected increase of the number of vehicles.
Sector or market risk factors or barriers in the national or regional context
Other than budgetary constraints which might arise when allocating national funds for the
implementation of WPM PAMs, no significant risks or barriers are foreseen in terms of the expenditure
needed for Government to implement the WPM PAMs. The lack of risks or barriers foreseen should
be seen in light of the bottom-up approach Malta has undertaken for the identification of policies and
measures falling under the WPM scenario of the NECP. In this sense, the package of WPM measures
indicates the projected attained levels in 2030 (in terms of energy consumption, share of renewables,
GHG emissions, etc.), as opposed to applying an approach where the setting out of targets in the
relevant dimensions would precede the identification of measures to reach this target. Therefore, due
to the nature of planned measures which are realistic and considered attainable under current and
foreseen conditions, significant barriers or risks posing challenges to their implementation are not
expected. Nevertheless, situations might arise where national funding streams would not be sufficient
0
100
200
300
400
500
600
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031-2035
2036-2040
€2016/household
Annual investment in households
WEM WPM
228
to ensure the implementation of certain measures or projects and would need to be complemented
by EU funding mechanisms.
With regards to the assumed costs related to the natural rate of changes of technologies, it is
important to note that Malta is a technology-taker and is therefore highly dependent on how markets
operate without having a significant effect to either the demand or supply side. It is therefore worth
noting that although how markets are expected to evolve was factored into the assumptions taken
when modelling the WPM scenario, Malta has and foresees no power in manipulating markets related
to present and future technologies.
Analysis of additional public finance support or resources to fill identified gaps
identified under (ii)
Please refer to above.
5.4 IMPACTS OF PLANNED PAMS ON OTHER MEMBER STATES AND REGIONAL
COOPERATION
Due to the small nature of Malta’s economy and energy system and due to its geographical isolation,
which positions it on the periphery of the EU, the impact of Malta’s national planned policies and
measures, described in Section 3, on other Member States is considered to be practically negligible.
The measure under the WPM scenario with the most significant regional importance is the Malta-
Italy gas pipeline project. Should Malta become connected to the Trans-European Gas network via
the gas pipeline, Malta would be affected by the application of harmonised transmission tariff
structures for gas and thus any developments in the European gas market would affect gas and
subsequently electricity prices in Malta. Within Malta’s energy modelling framework used for the
development of the NECP it is assumed that the Malta-Italy gas pipeline is put into operation in 2025.
The impacts of the gas pipeline are described in further detail under the Energy Security and Internal
Energy Market dimensions of the Plan.
Given that Malta imports electricity from Sicily through the interconnector, the convergence of
electricity prices between Sicily and that of the PUN
108
would ultimately have an effect on electricity
prices in Malta. Furthermore, since the Maltese vertically integrated DSO is responsible for both
acquiring electricity from local generation capacity and the electricity market in Sicily as well as
balancing the Maltese electricity grid, further deployment of solar PV in Malta will also depend on the
possibility for the DSO to bid as close as possible to gate closure time.
108
National Single Price in Italy
229
ANNEX I – DETAILED SUMMARY OF PUBLIC’S VIEWS DURING PUBLIC CONSULTATION PROCESS
Feedback received during the public consultation
process
Malta’s comments
GENERAL AND CROSS-SECTORAL COMMENTS
Malta’s Draft NECP did not sufficiently build on previous plans.
The National Energy and Climate Plan replaces previous reporting obligations, such
as the National Energy Efficiency Action Plan (NEEAP) and the National Renewable
Energy Action Plan (NREAP). These, along with the existing climate-related
reporting obligations are now streamlined into one coherent and integrated plan,
with the addition of new elements under the Internal Energy Market, Energy
Security and Research, Innovation and Competitiveness dimensions. The scope of
the NECP is much broader compared to previous sectoral plans in the area of
energy or climate.
There was insufficient involvement of NGOs during the preparation of
the Plan, further consultation with researchers and academics in the
development and execution of PAMs is required.
Researchers and academics, including anyone from the general public was invited
to take part in the public consultation process for the NECP. Researchers and
academics are being consulted in more detail for the purpose of the development
of the R&I strategy in the areas of energy and water management.
Health issues and impacts are not considered in the Plan. Reframing
climate change as a public health issue tends to have a greater buy-in
from the public.
The impacts of planned policies and measures on health are being considered as
part of the Impact Assessment in Section 5.2 of the Plan. As part of this section the
macroeconomic, health, environmental, employment, skills and social impacts of
the planned policies and measures included are being assessed.
The success of the NECP is dependent on a change in mindset and
behaviour of various stakeholders at different sectors, which could be
mediated by educational campaigns targeting the various stakeholders
The involvement of stakeholders is duly considered at all stages of the
development of the NECP, starting from the drafting stage, at the stage of
identification of policies and measures as well as the implementation stage. At the
drafting and development stage, an Inter-Ministerial Steering Committee was set
230
up to ensure that all national stakeholders and government bodies contribute
effectively towards the national plan. The involvement of local authorities, social
partners, civil society organisations, the business community as well as the general
public was carried out through early stakeholder consultations (bilateral
meetings), an official public consultation process on the online government
platform and a public consultation event where the Draft NECP was presented.
Malta’s NECP contains policies and measures which directly target stakeholder
engagement, including via educational campaigns. For example, Malta is planning
to engage with key stakeholders to encourage their involvement in the increased
deployment of renewable energy technologies.
How is the government planning to lead in the areas of green transport,
green buildings, RES applications?
In the area of energy efficiency, the Government is committed to lead by example
through the implementation of a number of measures to achieve energy savings.
These measures include the continued roll-out of energy efficient street lighting as
well as projects in the primary water network and wastewater treatment plant by
the national water utility company which would improve system efficiency and
reduce electricity consumption.
Green buildings:
Work on the cost optimality studies is underway during 2019 and NZEB obligations
beyond 2020 will be identified after their finalization. In the area of Green
Buildings, The Building Industry Consultative Council (BICC) has worked in
collaboration with the University of Malta and the EU for the exercise of a green
rooftop project that was undertaken and studied on the roof of one of the
buildings at the University of Malta.
Green transport:
In the area of green transport, incentives are already being provided for the
purchase of electric vehicles. Malta already has an extensive network of public
charging points, advantageous incentive schemes for electric cars and scrappage
231
grants for old inefficient vehicles. Transport Malta has also extended the current
EV grant scheme to be availed by commercial companies with grants ranging up to
€200,000 in line with state aid regulations. A fully electric park and ride bus
transport in Gozo will also be implemented during 2019. A description of
incentives provided in the area of green transport is included under Section 3.1.3.
iii on measures to achieve low emission mobility.
Schemes based on tax rebates are not sufficiently attractive in Malta
Based on experiences from a number of ongoing schemes, it is indeed the case
that tax credits are not considered as sufficiently attractive, in particular in the
area of energy efficiency schemes for industry and services. In this regard, Malta
is considering the inclusion of a grant element in future schemes to further
encourage and boost measures targeting energy efficiency.
RENEWABLE ENERGY
Malta’s RES target is not sufficiently ambitious.
Setting progressive RES targets would kick-start a new business model
for Malta which would empower companies to offer installation and
maintenance of RES systems in Malta and abroad.
The suggested increase in Malta’s RES share is progressive in line with the
indicative trajectory. Malta’s RES contribution reflects the Government’s efforts to
fully exploit indigenous RES sources within the present technical and geographical
limitations. Growth in the renewables market is expected, including further
opportunities for companies offering installation, maintenance and repowering of
RES systems.
As explained in section 2.1.2.i of the NECP, Malta has numerous limitations with
respect to deployment of RES technologies. The relevant circumstances affecting
renewable energy deployment taken into account during the development of the
Plan are outlined in line with Article 5(1)(e) of the Governance Regulation. As
highlighted, Malta’s potential for renewable energy deployment is mainly affected
by physical and spatial limitations, technological advancement and resource
potential, with the availability and cost of land being the predominant restrictions
for further deployment. Notwithstanding, PV capacity is estimated to double in
2030 compared to 2020. Thus, even though Malta’s RES contribution in terms of
increase in RES share seems low, efforts by Government will be ongoing. To note
232
that the RES share also depends on energy demand increase, which is expected to
increase rapidly in the next decade based on the current demographic and
macroeconomic trends and projections.
Alternative sources of RES, such as wave, wind and off-shore PV need to
be considered. Investments in small wind project prototypes should be
prioritized.
Article 5(1)(e) of the Governance Regulation requires Member States to indicate
in their NECPs the relevant circumstances affecting renewable energy deployment
that have been taken into account. The Plan explains why sources such as wind
and wave technology are not included in the current plan for the period 2021-
2030. Due to restrictions imposed by bathymetry, intensity of commercial activity,
concentration of marine protected areas, conventional off-shore wind energy
cannot be considered economically, socially or environmentally viable at the
current technological state. Nevertheless, as explained in Malta’s Plan, the
Government is committed to continue and monitor developments primarily in
floating off-shore solar PV and wind technologies. If deemed viable during future
assessments, these technologies might feature in future updates of Malta’s NECP.
Additionally, wave technology is not expected to make any contribution towards
Malta’s 2030 RES target as a result of technology readiness, reliability and
affordability.
Economic incentives, such as subsidies to initial capital investment,
improved FIT and ad-hoc grants could secure a safe uptake of RES,
especially by households and the private sector. It is important that
already existing grants, such as the Feed-in-tariffs are continued and
enhanced.
Grants for households and other support schemes for non-households are already
included in the NECP. In view of further potential for increasing the energy
generated by solar PV, the Government intends to extend the present support
framework beyond 2020 to continue encouraging households and private
investors to opt for renewables. A wide range of economic incentives is therefore
explored. For example, the Government is planning to engage in discussions with
banks to include economic incentives in loan policies for the installations of RES
technologies. Additionally, further capital grants are explored which would
provide support for the installations of solar water heating systems, as well as
discussions with the relevant stakeholders on incentive schemes for the
installation of PVs on new or newly refurbished buildings and offices. The
framework for economic incentives targeting RES is already robust.
233
A system of penalization of users of ‘dirty fuels’ in the industry sector is
required to incentivize RES.
The Government is currently assessing policy options for consumers of fossil fuels
(excluding LPG) which are used for heating & cooling and industrial processing.
Establishment of a one-stop-shop for RE incentives, schemes and
technical advice should be considered.
In line with the RED recast, Malta has initiated discussions with the relevant
stakeholders on how to facilitate the application process for future RES installers.
In the area of Solar PVs, a system of fast-track permitting, taking the form of a
notification process was adopted by the Regulator (REWS). The Government also
intends to adopt a simplified procedure for repowered systems of larger capacity.
Joint RES projects with other Member States should be prioritized over
statistical transfers as they can have the added benefit of mobilizing and
improving the economy.
Exploitation of all viable indigenous sources of RES will be prioritized.
Nevertheless, Malta will consider joint projects as well as other possibilities, such
as tapping into the EU renewable energy financing mechanism proposed within
the Governance Regulation. The purpose of the financing mechanism will be to
provide a voluntary option to Member States for gap-filling on the road to the
Union’s 2030 target, but also a tool to tender support for new renewable energy
projects in the Union. In case Malta will need to use the RES financing mechanism,
all costs and benefits will be considered. Priority will be given to the financial
situation.
The Government should consider issuing a call to suppliers of Solar Water
Heaters and guarantee a number of grants through a best-price process.
Currently households can benefit from a grant scheme when buying a SWH. In
order to be eligible for the SWH grant scheme, suppliers need to register their
products/systems with REWS.
Energy community incentives, such as purchasing of PVs or roof-space
are necessary to give power to the community to be able to produce its
own energy.
Solar PV farm schemes should be extended to citizens who will be given
the opportunity to invest.
During 2018, work on the Government’s first communal solar farm project at the
site Il-Fiddien was completed. A total of almost 1MWp of virtual PV capacity was
made available for households and within a few days, the scheme was fully
subscribed. Following the success of this project, the Government encourages
private enterprises and investors to adopt and refine the initial model which
provides the possibility for consumers who do not have access to a private roof,
and thus cannot install a PV, to participate in the shift towards renewable energy
generation.
234
The Government is assessing various options on how to encourage the uptake of
other RES and energy efficient technologies, apart from solar, for consumers
without access to a private roof to participate in the shift towards renewable
energy generation.
ENERGY EFFICIENCY
Draft NECP lacks serious approach in addressing energy efficiency on the
demand side and there are no effective incentives for energy savings or
curbing future energy consumption.
Energy efficiency measures in the commercial sector are not sufficiently
addressed.
Plan misses the opportunity of mobilizing new local markets to invest and
propel energy efficiency
A major scheme addressing energy savings in industry and services is included in
the plan. Enterprises will be encouraged to undertake energy efficiency projects
through the availability of investment aid which would be linked to the amount of
savings achieved over a specified period. Increasing population, growing demand
in the housing market and the growth of tourism are indeed making it difficult to
restrain the increase in energy consumption. Although there is an element of
decoupling between energy and GDP, increasing energy demand in absolute terms
is expected to continue post-2020 mainly due to the expected increase in
population. However, due to technological improvements and various measures,
the energy intensity of Malta is projected to improve.
Heavy consumers of energy in the industrial and services sectors are targeted
through regulations and voluntary agreements which encourage the adoption of
energy efficient technologies.
A new energy cluster launched by stakeholder organisations will bring together
experts, suppliers, and clients in order to facilitate knowledge transfer, exchange
of best practice and help identify solutions to challenges that businesses are facing
on energy. The aims of this cluster include supporting increased take up of energy
efficiency projects in businesses; supporting businesses in decreasing their utility
bills and acting as a catalyst for increased business action in the area (energy
efficiency).
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INTERNAL ENERGY MARKET, SECURITY OF SUPPLY, RESEARCH & INNOVATION AND COMPETITIVENESS
Future plans for a gas distribution network to serve domestic users after
the commissioning of the gas pipeline.
The gas pipeline project should be discontinued forthwith due to high
security, high ecological, high technological and high governance risks.
Instead, the same level of financial commitment and enthusiasm should
be directed towards emerging sustainable options to build a long-term
sustainable energy future for Malta
The Melita TransGas Pipeline (MTGP) project would end Malta’s isolation by
connecting the island to the trans-European Natural Gas Network and so, allowing
the transportation of gas from the Italian gas network necessary to meet Malta’s
gas demand for power generation and possible future inland market.
MTGP Project poses a means to fulfil EU strategic energy policy goals on energy
solidarity between Member States, the formation of an Internal Energy Market,
diversification of sources, reduced dependency on a single supply source and
improved energy security.
The gas pipeline would replace the Floating Storage Unit of LNG which is currently
being used for the supply of gas for electricity generation. This seeks to enhance
Malta’s energy supply security and economic competitiveness and to contribute
towards the reduction of GHG emissions as the current need for liquefaction,
shipping and regasification would be eliminated. In parallel, the Government is
continuing its efforts to support sustainable renewable energy and energy-
efficient technologies.
Battery storage systems should be considered for security of supply
reasons
Battery storage solutions are being studied by both Government and Enemalta.
Utility scale battery storage is being studied not only for security of supply reasons,
but also with respect to grid stability considerations, which is currently one of the
barriers limiting Malta’s renewable energy potential post-2020. Investments in
storage infrastructure will facilitate further deployment of renewable energy. For
instance, potential schemes for investment in battery storage systems in
households can be expected to increase the share of self-consumed renewable
electricity, which would then curb the impact on the low voltage network and in
turn smoothen the demand.
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The liberalization of Malta’s energy market. One has to consider the
interests of the electricity and business markets and not only the
interests of protecting the sole electricity supplier
The new EU electricity market Directive (2019/944/EU) for the period post-2020
grants Malta derogations related to third-party access (Article 6), unbundling of
DSOs (Article 35) and Ownership unbundling of transmission systems and
transmission system operators (Article 43). Article 4 (free choice of supplier) shall
not apply to Malta until 8 years after the entry into force of Directive. That period
may be extended for a further additional period, not exceeding eight years.
Derogations applicable to Malta are outlined in Article 66 of the Directive.
The progressive rising block residential tariff should be tied to the
number of people in a household
Residential tariffs are tied to a number of units within each band. However,
residential consumers benefit from an eco-reduction scheme, which is a scheme
whereby the household benefits from a reduction if the number of units consumed
per person is not superseded.
Smart meters currently do not provide any useful information to users
and do not enhance energy efficiency
In line with its programme to ensure an efficient distribution system, Enemalta has
equipped 99% of its consumers with smart meters and has adopted a tariff system
that favours the prudent use of energy. Whilst the use of a smart meter eliminates
manual meter reading by the utilities and eliminates the need of estimated bills,
further measures are needed to improve the possibility of offering detailed
feedback on energy use to the consumer and useful information to adjust
consumption habits.
The deployment of new smart meters and replacement of old inefficient smart
meters will continue post-2020 in line with the requirements of Articles 19 and 20
of Directive (EU) 2019/944 on common rules for the internal market for electricity.
Smart metering systems will have to comply with the minimum functional and
technical requirements and provide final customers with information on actual
time of use and real-time consumption data in order to support energy efficiency
programmes as well as demand response.
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The energy poverty assessment made in the document contradicts EU
studies and should also include the inability to cool in summer to reflect
the situation in Malta
Low-income households need to be put front and centre when designing
policy
The MT assessment is based on one of the four primary indicators available on the
EU Energy Poverty Observatory and is line with EU studies and official data cited
by the European Commission. The Energy Poverty Observatory also includes an
indicator on whether the dwelling is comfortably cool during summer time,
however, the only data point based on the SILC study is from 2012 and doesn’t
capture recent trends, such as the significant increase in the deployment of air-to-
air heat pumps in households which significantly improved the thermal comfort in
the summer period. In the European Commission’s Communication on the
assessment of Member States’ Draft NECPs
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the Commission acknowledged the
good level of detail provided in Malta’s assessment of energy poverty.
The underlying energy policy rooted at the core of Malta’s NECP is the necessity to
ensure affordable, sustainable and secure forms of energy for Maltese citizens and
businesses. Low income households are included in MFCS’ list of priorities. Malta’s
commitment to reduce poverty and social exclusion is reflected in the National
Strategic Policy for Poverty Reduction and for Social Inclusion 2014-2024. Section
4.5.4 of the NECP also outlines the existing national policies and measures focusing
on fighting energy poverty and supporting low-income households.
More funding for energy and climate research is required. Malta could
become a hub for testing of advanced low-carbon technologies. Future
research should focus on areas such as distributed ledger technology in
energy trading or deep off-shore wind technology.
In order to strengthen and encourage further research in low-carbon technologies,
Malta is developing a sector-specific National Strategy for Research and Innovation
in Energy and Water for the period 2021-2030. This document will outline priority
areas for research under the theme of energy and water, based on ongoing
consultations with experts in industry and academia, key stakeholders and the
public. It is expected that the sector-specific Strategy will be implemented through
periodic action plans, the first being published by the end of 2020.
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Communication from the Commission COM(2019)285: ‘United in delivering the Energy Union and Climate Action – Setting the foundations for a successful clean energy transition’. Page 20.
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TRANSPORT-RELATED COMMENTS
Malta’s planning is focused on the use of individual cars and currently
ongoing infrastructural works only aggravate the situation.
There are no alternative options for public transportation, whilst modal
shift is not being incentivized.
There is a network of public transport ferries and buses which is extensive, one of
the most extensive public bus transport systems in Europe. Modal shift is being
incentivized but not disincentivised. Incentives include free public transport for
various users and reduced fares for others, integrated ticketing, VAT and other
fiscal incentives for bicycles, pedelecs etc, also incentives for the purchase of
electric cars. One might say that the market is saturated with incentives but has
no disincentives.
Support for a mass-transit system whereby the benefits of such a system
for the citizens (i.e. CO2 emission reductions, reduced energy use, health
benefits and improvement in the image of the country) overweigh an
assessment strictly on financial feasibility
In the Strategic Plan for Environment and Development (SPED), spatial planning is
seeking to accommodate socio-economic development in those parts of the Urban
Area well served by public transport and existing infrastructure, to contain urban
sprawl and minimise the need to travel. The SPED has designated a hierarchy of
urban areas which includes a Principal Urban Area to accommodate major
employment, social and residential development needs. This approach has the
intention of supporting the creation of a critical mass to enable a feasible mass
transit system. However, the critical elements to create the critical mass are
population and economic growth.
The Government of Malta has already expressed its commitment to invest in mass-
transit systems that are environmentally and financially sustainable. In fact,
several preparatory studies are currently being compiled. Infrastructure Malta is
committed to continue supporting all upcoming planning and implementation
phases of the introduction of such systems, in collaboration with other entities and
authorities.
Unwanted modes of transport should be taxed, while others such as
electric vehicles should be incentivized. Malta, due to its size could be a
role-example in the area of electrification of transport. The
implementation of EVs in high-usage fleets (i.e. taxi operators, buses,
This is already the case, incentives are provided for the purchase of electric
vehicles. Furthermore, the slow death of the diesel vehicle has already begun with
many European cities not allowing them in their streets. The Maltese market will
eventually respond when demand diminishes and production will be stopped due
to lack or drop in sales. Malta already has an extensive network of public charging
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rental cars, tourist transport) tied with initial government support should
be considered to ease the transformation.
points, advantageous incentive schemes for electric cars and scrappage grants for
old inefficient vehicles.
Transport Malta has already extended the current EV grant scheme to be availed
by commercial companies with grants ranging up to €200,000 in line with state aid
regulations. Fully electric park and ride bus transport in Gozo will also be
implemented during 2019.
There should be incentives for the charging of electric vehicles from
renewable energy sources.
Enemalta is in the process of studying and assessing different policy and technical
options for the charging of electric vehicles in households. The outcome of this
study will be a system for charging that would facilitate and promote further
deployment of electric vehicles in line with the Government’s policy in the area of
low-emission mobility.
The electrification of private vehicles is not a solution as it will only be
beneficial from an air pollutant standpoint and these vehicles will be
charged from a grid reliant on non-renewable energy.
The road to decarbonization by 2050 will inevitably require a push by all the
relevant sectors. The electrification of transport via the introduction of electric
vehicles and the electrification of industrial and services sectors will have to be
strengthened in conjunction with increased deployment of renewable sources of
energy.
The electrification of private vehicles will be supported by other policies and
measures targeting the modal shift to alternative low-emission modes of
transport. Nevertheless, electrification of the transport sector in itself is expected
to lead to a significant reduction of CO2 emissions.
Government work in past years to reduce emissions from transport is
non-existent, while existing policies and projects continue to increase
overall emissions from transport
Notwithstanding a number of fiscal measures, such as the registration tax and road
circulation fee, emissions from the ageing vehicle fleet remain an issue. Effective
measures have been taken in the renewal of the public transport fleet. Currently,
the government is studying measure to reduce emissions from road transport and
the move towards non-ICE vehicles.
The majority of newly registered vehicles are second hand imports,
which doesn’t contribute to increasing of efficiency and decreasing of
Government ensures that such second-hand car imports are in line with EU
Regulations and Standards and they contribute to the faster replacements of older
vehicles due to affordability by the consumer.
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age of the stock of vehicles in Malta. How does the government plan to
address this phenomenon?
TEN-T projects marginalize and discourage the use of walk and bicycle
lines and do not contribute to achieving climate targets
Where space permits, new infrastructure to encourage modal shift is being
integrated in the majority of the TEN-T projects being planned and implemented
by Infrastructure Malta. In fact, through ongoing and upcoming investments in
road infrastructure (such as the Marsa Junction Project, the reconstruction of Triq
Hal Luqa, Triq il-Buqana and Triq Hal Qormi, and the new Santa Lucija Tunnels and
Central Link Project) Infrastructure Malta is introducing safer bus laybys, over 12
kilometres of new cycle tracks, mostly segregated, and many more kilometres of
new footpaths. Infrastructure Malta is also investing in the introduction of several
new pedestrian bridges, as a safer alternative to existing pelican crossings which
put pedestrians at a greater risk of accidents and other consequences. Moreover,
a 2019 analysis of seven of Infrastructure Malta’s ongoing and upcoming arterial
road projects will lead to a 62,000 tonne reduction in carbon dioxide emissions
every year, for the next 25 years.
The Plan does not provide references to any plans for LPG and natural
gas used for heavy duty transport.
A study commissioned by the Ministry for Transport and Infrastructure is
underway. The Clean Fuels Infrastructure Directive requires the introduction of
infrastructure for CNG by 2020 and LNG by 2025 if economically feasible.
Use of hydrogen for big machinery and in the maritime sector should be
considered
Malta believes that the electrification of transport is the solution to achieve a
viable and sustainable future transport system. Hydrogen Fuel Cell Technology is
expected to power larger electric drive trains used for trucks and buses while
Battery Electric Vehicles will power passenger cars. In this regard, the Ministry for
Transport and Infrastructure together with Transport Malta will pursue future
technology developments and facilitate demonstration and lighthouse projects
accordingly. The Malta National Hydrogen and Fuel Cell Technology Innovation
Programme (MNHFCTIP) will be part of the Malta National Electromobility Action
Plan which will step up its efforts to promote battery and all-electric drive
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technologies. The Government will also follow technological developments in
Hydrogen Fuel Cell Technology applications for the maritime sector.
The government should consider the introduction of tele-working for its
employees (i.e. 2 days/month for each employee) to decrease traffic and
congestion whilst promoting more efficient working practices.
The proposal for teleworking is one which is viewed very favourably Government
wide, since it falls within Malta’s environmental and traffic policies, and
contributes towards the creation of a better work/life balance. In fact, statistics
show that within the public sector, teleworking is constantly increasing.
BUILDINGS-RELATED COMMENTS
The area of energy performance of buildings is lightly considered in the
Draft NECP.
A new building code for the Maltese Islands is currently being drawn up and being
supported by a working group on Energy efficiency and energy conservation,
Smart Buildings. Deep energy retrofits that save more than 70 % of the current
energy usage are being considered. In addition, Government is also looking into
the gathering of energy and its reuse at peak times together with other initiatives.
The government should consider incentives to promote green rooftops
and energy-efficient buildings. Green rooftops can be beneficial for
stabilizing indoor temperatures.
The Building Industry Consultative Council (BICC) has in fact already worked in
collaboration with the University of Malta and the EU for the exercise of a green
rooftop project that was undertaken and studied on the roof of one of the
buildings at the University of Malta. The exercise was a success with much
information obtained on the quality of species that would be used in such a project
and the implementations of the plant boxes without causing any damage or
maintenance obstacles to the roof.
NZEB obligations beyond 2020 are not addressed in the NECP, while
Technical Document F is not being enforced on new buildings.
Work on the cost optimality studies are currently underway and before these are
finalized it would be premature to identify NZEB obligations beyond 2020.
Government believes that the professionals concerned, i.e. architects and
engineers, are in the best interest of their clients applying the provisions of
technical document F on new buildings. Furthermore, legislation places substantial
fines in the case of defaults.
The first draft of the Long-term renovation strategy (LTRS) should be
included in the Plan by the end of 2019. This strategy is a key opportunity
to make buildings more energy-positive.
The LTRS is an obligation of Directive 2018/844, Article 2a, and the deadline for
the submission of this strategy is 10 March 2020. The Ministry for Transport will
be submitting the strategy by this date.
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The enforcement of energy efficiency measures in new buildings must be
strengthened. The insulation of single walls, either limestone or hollow
concrete block could result in significant energy savings and could ensure
a reduction in heating and cooling requirements.
This issue will be addressed when the new Building & Construction Authority will
be statutory and established, and the respective Enforcement Directorate will start
effectively functioning and monitor the element of energy efficiency in buildings.
The Plan should consider the introduction of obligations for new and
refurbished dwellings to install renewables.
The priority of compliance is related to sustainability, especially, where there is
much waste of energy and safety requirements for the general public.
The BICC in its working group ‘Regeneration of property’ is currently discussing
how older buildings can get incentives for retrofitting and is offering courses in the
maintenance of older properties. The courses are led by experts that explain what
materials should be used for alterations, maintenance and modernization. The
BICC is currently working on a launch of a book that discusses in detail how older
buildings could be renovated in a sustainable manner using green passive systems.
More space should be allocated for the installation of Solar Water
Heaters on residential rooftops. The integration of SWHs in new high-rise
buildings needs to be considered at the design stage. This should be a
mandatory requirement in all new buildings for the placing of a solar
water heater. If most buildings had a SWH system the load on the power
station would be considerably lower.
Building-integrated PVs should be considered in the Plan.
The allocation of roof-space for the installation of SWHs is presently being
discussed in a wider context and is expected to be emphasised even more with the
setup of a regulatory body for building sector.
The possibility of solar PV cladding on the exposed sides of high-rise and mid-rise
buildings is a relatively new concept that is being developed.
Building-integrated photovoltaics (BIPV) may be considered by the Government in
the future pending the economic viability of the technology. Currently, the price
of active facades and rooftops per square meter remains relatively high which
hinders the wide-spread use of such technologies in the construction industry.
The integration of RES in buildings needs to be made more financially
attractive from a developer’s point of view.
RES systems are often interpreted by developers as solar PV cells. There are many
more initiatives that can be taken at an early design stage to make the building
more energy efficient. There are a variety of passive cooling systems that can be
incorporated at building stage with no or little cost difference. Should the
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developers not incorporate the RES system, the building should, at least, be built
in a method that facilitates the implementation of the same at a later stage.
The issue of solar rights has not been addressed.
Although not featured in Malta’s NECP, the issue of solar rights is being followed
by the Government with potential solutions being assessed.
CLIMATE AND GHG EMISSIONS COMMENTS
The level of progress towards the -19% ESR target is not explicitly
explained in the Plan. The Plan needs to address mitigation and
adaptation to climate change and acknowledge that climate change is
affecting Malta, both in terms of energy demand as well as in terms of
the negative effects on the environment, health and other sectors.
The draft NECP had pending issues on sectors, namely the transport sector, the
responsibility of which falls under the respective Ministries. The gaps were
addressed in the final plan. The Ministry for Environment, Sustainable
Development and Climate Change (MESDC) is currently in the process of assessing
the mitigation potential of all sectors through the LCDS to ensure compliance with
the ESR regulation. This strategy will aim to consider national circumstances and
realities, especially those aspects that link socio-economic development with
climate action to better identify the sectors with the highest mitigation potential,
followed by the attribution of sectoral targets. A roadmap of implementable
measures addressing the various sectors will be charted out to transition towards
decarbonisation of Malta’s economy by 2050. Malta is committed to fulfil the
scope of Regulation (EU) 2018/1999 on the Governance of the Energy Union and
Climate Action.
Malta has failed its emission reduction targets and is the only Member
State which has had to purchase allowances.
Malta has always complied with the Regulation by using the tools provided for all
Member States within the same legal instruments.
Doubts about projections in relation to CO
2
emission reductions given
the current rate of car use and increased car ownership per capita
The modelling framework used in the development of Malta’s Draft NECP was
updated and revised during the course of 2019. Technical assistance provided
through the Structural Reform Support Service (SRSS) focused in part on the peer-
review of the existing modelling framework, including a model used to project road
transport fuel consumption. After thoroughly reviewing and updating the models
methodology, it was deemed that CO
2
emission reductions were not an accurate
representation of real-life conditions. This resulted in an underestimation of fuel
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consumption in projected years. Updates to the model ensure that fuel
consumption factors used are based on real-life conditions faced by the Maltese
vehicle stock. The updated set of projections, both for the WEM and WPM
scenarios feature in Malta’s Final NECP.
The maritime sector is an enormous polluter and therefore regulatory
measures are required to allow only vessels meeting specific ‘green’
standards to enter MT ports
Under the provisions of the Effort Sharing Regulation, the maritime sector, except
for Malta to Malta, is not taken into consideration. It is important to note that
shipping and maritime is vital for Malta’s socioeconomic wellbeing. Apart from
tourism, Malta imports all essential commodities.
Additionally, there are already measures in place to ensure the reduction of
pollution, with some measures enforced and other planned, such as:
• Sulphur Directive 2012/33/EU allowing the use of marine fuel with a
maximum 3,50% Sulphur content, whilst vessels at berth to use 0,10%.
• The 2020 global reduction in sulphur content of marine fuel from the
current 3,50% to 0.5% in line with MARPOL Convention Annex 6 and
Directive 2012/33/EU
• Ship-Source Pollution Directive criminalizing pollution from vessels,
including negligence (Directive 2005/35/EU)
• Monitoring, Reporting and Verification of Carbon Dioxide Emissions from
Maritime Transport Regulation (EU) 2015/757
• Ports Regulation – Regulation (EU) 2017/32 enshrining the principles of
environmentally sustainable port operations and introducing
environmental charges/dues
• Alternative Fuel Infrastructure Directive 2014/94/EU
All vessels in Maltese ports to which the above applies to must follow the
provisions of these Regulations.
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Polluter-pays principle needs to target businesses since they, through
the services sector, are the second main energy consumer after transport
The current legislative framework in itself enshrines the PPP. The most relevant
example being the emission trading scheme, which covers all non-renewable
electricity production in Malta.
In the area of road transport, there is a registration tax and an annual circulation
tax which is founded on the polluter pays principle as it’s based on the length of
the vehicle and CO2 and PM emissions of the vehicle. Private companies can
benefit from up to 200,000 EUR in cash grants to change their car fleets.
Employment of green infrastructure (GI) in urban and rural settings is
required to mitigate climate change.
The GI aspects will be considered under the climate change adaptation.
Afforestation projects embarked upon by the Ministry contribute albeit minimal
to climate mitigation.
In the area of agriculture more sustainable farming practices are needed,
support needs to be provided for farmers to move away from animal
husbandry and into plant-based agriculture. The government should also
promote the consumption of local vegetables.
Measures regarding sustainable farming practices and the promotion of local
produce are catered for under the National Agricultural Policy for the Maltese
Islands for 2018-2028.
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ANNEX II – NOTIFICATION OF DETAILED METHODOLOGY TO IMPLEMENT ARTICLE 7 OF DIRECTIVE
2012/27/EU
Pursuant to point 5 of Annex V to Directive 2012/27/EU for the operation of the energy efficiency obligation schemes and alternative policy measures referred
to in Articles 7a and 7b and Article 20(6) of that Directive, Member States shall notify their detailed methodology.
The notification will be submitted to the European Commission together with Malta’s Final NECP in the suggested excel template format.