The proceedings in Parliament this past week have cast useful light on the violent arguments related to the new power station.
The present state of the Italian network shows quite clearly that at the time of projection, the interconnector (IC) idea was a shot in the dark as far as cost of supply was concerned; its real value was in avoiding massive enlargement at Delimara once Marsa was killed off and of a backup in emergency. The condition of the Sicily grid, power stations (gas and fuel oil) and the undersea link to Calabria was rather poor. This was leading to Sicilian rates being significantly higher than mainland rates and so pushing up the average national (Italian) rates.
In 2009 Terna the Italian network operator presented a plan to remove a major (but not the only) throttle point: the 100MW (not 250MW as I said last Sunday) underwater IC between Sicily and Calabria. The new IC is now nearing completion with a first underground leg between Rizziconi (near Gioia Tauro) and Favazzina on the coast just north of Scilla. There is then a 38km undersea length landing on the western edge of Messina. Completion date, which has suffered many setbacks, is now reckoned to be past the middle of next year.
On our side: with both plans put forward before the last election, it was clear that the 200MW IC could not by itself cover demand. Therefore we had to have significant local generation. One side said let's keep what we have (other than Marsa), with the IC stepping into the shoes of tired, old, condemned Marsa. The other side wanted a radical break: phasing out Delimara I (120MW of ageing steam turbine burning HFO without any filtering: the real cancer factory!) and substitution with a 200MW CCGT working on natural gas from a local LNG source; BWSC with eventual conversion to natural gas working; and the Sicily IC.
The present scene: the Opposition says the new power station is not required. Not a very tenable argument given the age (20 years +) of and the fuel (Heavy Fuel Oil with no exhaust pollution) used by Delimara 1. Then a flank attack spearheaded by claims of cheap electricity (4c5, 3c5, <5c2/unit) immediately available from the IC.
Problem: it is clear from the Sicily-mainland present situation that the claim of immediate availability of such rates is fake, even if the hope for the medium term (2-3 years time) is better. Minister Mizzi, invoking "congestion charges" among other (less credible) reasons, and again being miserly with information, said that rates quoted by prospective IC suppliers were all higher than the 9c5 of Electrogas. But the real millstone round the Minister's neck is the IC capacity, which he was not responsible for. The 200MW capacity, requiring at least 2.5 times that in installed capacity (other than stand-by or peak), destroys any chance of "flexibility" in dealing with other sources of generation. The fact that "other sources" are not "ours", for which Minister Mizzi is responsible, has aggravated (not created) the situation. The initial annual generation plan outlined by KM is 50% CCGT, (said to have, correctly, high efficiency and, incorrectly high flexibility), 30% BWSC (high flexibility) and 20% Sicily IC.
There is a further consideration: the initial ( 18-24 months) use of the IC will probably have to be greater than 20%, first to make sure that the Marsa removal goes through smoothly, and then to cover BWSC deficit while undergoing gas conversion.
To conclude: Konrad Mizzi's positively hysterical accusations of profligate use of taxpayers' money by the Parliamentary Opposition have no basis in present and near future fact. On the other hand, this long-drawn out strip-tease from Dr Mizzi's side about contract details also shows contempt for the electorate.
Our situation, now put under a very bright light by the 'Wild West Episode' seems to be that government and opposition are on either side of W.H. Auden's aphorism: He who does not reason (government) will perish in the act; he who does not act (opposition) will perish for that reason.
E.A. Mallia
Attard