The Malta Independent 12 November 2024, Tuesday
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Malta aiming to increase renewable energy share to 25% by 2030 with offshore wind farms favoured

Thursday, 24 October 2024, 15:42 Last update: about 19 days ago

Malta is aiming to increase its renewable energy generation share from 10% to 25% by 2030, with a new national policy highlight offshore wind farms as the favoured way to do this.

The final version of the National Policy for Offshore Renewable Energy Use was launched by the Environment Ministry during the third National Energy Conference which was held on Thursday.

The policy outlines Malta’s plan to exploit offshore renewable energy through six strategic zones, with one area identified as the preferred site for offshore wind energy on marine structures. 

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The policy states that it is expected that major developments will “initially” take place in offshore wind technology, but also marked offshore solar technology as an “area of interest for Malta” – although it is noted that deployment of such technology so far is still limited because of the characteristics of marine and sea environments compared to onshore conditions.

Renewable energy currently makes up 10% of Malta’s local energy generation, with the bulk of this coming from small scale rooftop photovoltaic panel installations.

The environment ministry said in a statement that offshore solar technology, offers the advantage of being implemented closer to the coast, thus reducing visual impact while contributing to the country’s renewable energy goals. 

Minister for the Environment, Energy and Regeneration of the Grand Harbour Miriam Dalli highlighted the significance of this policy, stating, “By 2030, our goal is to increase our share of renewable energy in the energy mix to 25%, and to achieve climate neutrality by 2050. Offshore energy will be crucial in reaching these targets.” She emphasised that floating wind and solar energy projects have the potential to play a central role in this transformation. 

“This initiative not only advances our ambition for renewable energy but also strengthens Malta’s role in sustainable development in the Mediterranean region,” added Minister Dalli, stressing Government’s commitment to a greener future. 

Minister Dalli further elaborated on Government’s energy vision, which is based on five pillars: sustainability, energy security, source diversification, affordability, and a consumer-focused approach. She highlighted how this vision positions Malta at the forefront of the digital revolution in the energy sector. 

On what model the government wants to follow for attracting the investment required for this development to take place, the policy reads that there are three to choose from. 

The first is a centralised model wherein the State leads all phases of the development and is responsible for implementing all measurements and studies before launching a competitive tender which would grant the rights to build and operate the development to the bidder who offers the lowest price per kWh.

The second is the decentralised model where, in contrast with the centralised procedure the involvement of the state stops at the zone identification only. “The bidders are chosen based on technical and financial competence and the value of the option fee proposed by the developer. Any planning exercises, project developments, measurements and studies required for the actual implementation of the offshore renewable project are conducted fully by the developer,” the policy reads.

The third is an ‘in-between’ mode that combines elements from the first and second.

The policy reads that Malta will be adopting features of the decentralised model “where the Government will be responsible for identifying the zones and areas for development, launch the competitive bidding process which will lead to a selection of a successful bidder/s whose choice will be based on a set of criteria.”

“The Government will enter into an agreement with the successful bidder/s guaranteeing the use of the area as per agreement and subject to all relevant permits, authorization and clearances having been obtained within a specific timeframe,” the policy reads.

It continues that if financial aid is foreseen, the development will also be supported through either a “Contract for Difference (CfD) whereby the generator shall be required to sell the generated electricity to the market and get remunerated for the difference between the awarded bid price and the market price, or a Power Purchase Agreement (PPA) with a designated offtaker.”

“However, the adopted model may also include features typical of the centralized model to accelerate the permitting process and attract investment in the sector,” the policy says.

The policy was launched at the National Energy Conference, organised by the Energy and Water Agency (EWA) and the Institute for Sustainable Energy at the University of Malta, which provided a key forum for experts to share ideas on the challenges and innovations in energy.

This year’s theme — Digitalization of the Energy System — emphasised the synergy between energy and digital transitions, sparking discussions on how digital technologies are shaping the future of energy.

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