Enemalta plc and Enel Trade signed a framework five-year agreement to use the Malta-Sicily Interconnector for the importation of electricity from Italy.
The agreement was signed today by Ing. Fredrick Azzopardi, Enemalta Executive Chairman, Sun Ji, Enemalta Deputy Chairman and Leonardo Zannella, Head of Global Front Office, Enel Trade. This development will enable Enemalta to continue the testing of the Interconnector's cables and related equipment at Ragusa and Magħtab, before it is energised and commissioned later this year.
Enel Trade is the electricity and gas trading arm of Enel, a multi-national power company and a leading integrated player in the world's power and gas markets, with a particular focus on Europe and Latin America. The Enel Group operates in 32 countries across four continents, generating power from over 95 GW of net installed capacity and distributing electricity and gas through a network covering around 1.9 million km. In Europe, Enel is the number one power company in terms of reported EBITDA and, with its 61 million end users worldwide, it has the largest customer base among its European peers.
In May 2014, Enemalta launched a three-stage selection process to identify an international partner for the trading of electricity from Europe, particularly the Italian energy market. Four trading agencies submitted initial proposals. The decision to opt for a trader ensures that Enemalta retains full flexibility over the use of the Interconnector by being able to purchase from any market channel that offers the most advantageous rates.
Proposals were assessed through several criteria, including service reliability, operational compliance and support. Shortlisted bidders were asked to submit a commercial offer based on Enemalta's requirements. The best bid was submitted by Enel Trade. The two companies then entered into final negotiations to conclude the details of this agreement by January 2015.
Through the agreement with Enel Trade, Enemalta will also be able to participate in the various energy markets such as the same day market for emergency or immediate requirements and the day ahead market for short-term changed requirements.
The Malta-Sicily Interconnector comprises a 120-kilometre high voltage alternating current (HVAC) system capable of bidirectional flow of electrical power, transferring 200MW of electricity. In Sicily, the Interconnector is linked to the Italian network at 230kV in the Terna substation in Ragusa. The submarine cable lands in Malta at Qalet Marku, Baħar iċ-Ċagħaq and transmits electricity to the distribution network at 132kV through Enemalta's new terminal station at Magħtab.