Minister for Energy and Water Management Joe Mizzi said that the strategic partnership between Malta and Shangai Electric Power gave rise to win-win opportunities and is a textbook example of how even countries with diverse characteristics can cooperate effectively.
Whilst addressing the Belt and Road Energy Ministerial Conference in China, Minister Mizzi explained that Malta has long since recognised the importance of close cooperation with China and the long-standing cross-sectoral cooperation is characterised by numerous high-level visits and the conclusion of no fewer than fifty seven agreements or memoranda of understanding which have yielded benefits for both countries in the political, economic and cultural fields.
“As recent as four years ago, Malta’s state-owned electricity utility, Enemalta benefited from the largest foreign direct investment in Malta’s energy sector, whereby Shangai Electric Power became a strategic partner of Enemalta in the distribution, conventional and renewable generation, and the provision of energy services”, Minister Mizzi said.
“This investment which totalled 320 million euros was part of a wider overhaul of Malta’s generation sector which has now shifted away from the use of heavy fuel oil to natural gas for electricity generation and enabled Enemalta to turn around its financial position.”
The Minister continued to say that this overhaul was critical for the sustainability of Malta’s electricity system and enabled Enemalta to reduce its electricity tariffs by an average of 25% across the board. It also led to a reduction in green house emissions by over 50% as well as a significant reduction in other air pollutants and improved air quality. He also said that Enemalta has also commissioned an electricity interconnector with the European grid, whereas all the necessary studies are under way to develop a gas pipeline connecting Malta to the European gas network.
This would provide a higher degree of security of supply and access to even lower fuel prices. This partnership was also beneficial to SEP, which has acquired a sound foothold in the European energy market, and is now extending its portfolio with investments in overseas renewable projects including a 46MW wind farm in Mozura, Montenegro which is due for completion this year. Recently, it submitted a bid to construct a 200MW PV plant also in Montenegro.
“It is in this context that Malta is also cooperating with China on a Medium Term Cooperation Plan which, amongst other sectors, has identified energy as an area whereby cooperation on research and development of specific pilot projects can be developed. These pilot projects can be implemented in a “contained environment” and if successful could be easily scaled up and introduced in other larger markets.”
Minister Mizzi augured that the Joint Declaration being signed today will lead to effective cooperation between signatories who together can develop this partnership further and also attract other countries to join. He assured that in line with its international commitments and in particular its role as member of the EU, Malta is ready to contribute towards the success of this initiative.