Enemalta has to invest at least Lm120 million in a new steam generation plant, three upgraded distribution systems and an eventual connection to the European energy grid through Sicily, corporation chief engineer Peter Grima said yesterday.
Speaking at a press conference to launch the company’s Electricity Generation Plan for 2006-2015, Ing. Grima explained that both the Marsa and Delimara power stations do not meet the National Emissions Ceiling Directive and the Large Combustion Plant Directive, to which the plants have to be compliant by 2010.
He said that it will cost Lm5 million to change Boilers 1 and 2 at Marsa, Lm40 million to build a new combined cycle plant capable of generating 100 Megawatts of power and a further Lm55 million are needed to link up with the European grid. An additional Lm20 million is required to upgrade three existing distribution centres.
Enemalta chairman Alex Tranter explained that the company was looking to create 300 MW of electricity through the new plant and the grid system.
This would effectively phase out the Marsa Power Station as this currently generates 267 MW annually and with a reduction in its operation time to 20,000 hours, this will increase its life to 2010 with an option to keep it open until 2015, by which time it will become obsolete and will have to be shut down.
Ing. Tranter said that Enemalta was looking at various options to finance this investment, including the possibility of tapping EU funds (a maximum of 80 per cent of the investment), loans at advantageous rates and public private partnerships.
Industry, Investments and IT Minister Austin Gatt said that this was the second time that Enemalta was presenting its Electricity Generation Plan during a Nationalist administration. He said that this contrasted with the approach by the pre-1987 Labour Labour governments, where power was regularly cut off as generation could not meet demand.
Minister Gatt also confirmed that the government had taken a decision for the link with Sicily to go ahead as it opened up a scenario of new opportunities in the purchasing of energy. He said that this would eventually benefit the consumer, as the company would be able to ‘pick and choose’ the energy, be it from traditional sources or renewable ones.
The minister said that Malta would gain ‘security comfort’ from such a link, as it would enable us to have a backup if a power outage would occur at our local plants. He insisted that Enemalta was keeping its options open as regards payment and financing procurement, as the opportunities were quite varied in today’s competitive energy market.
Asked by The Malta Independent if such a substantial investment would have any impact on the customers’ energy bills, Minister Gatt said that it was early days to be able to predict such an outcome but he said that with cost savings, reorganisation and the cutting down of theft, the eventual outcome would hopefully benefit the consumer in a big way.