Malta has secured €100 million in financing from the European Investment Bank to support the development of a second electricity interconnector with Italy, aimed at strengthening energy security and enabling the integration of renewable energy.
The agreement was announced by EIB Vice-President Marek Mora and Finance Minister Clyde Caruana, with the funding set to support the construction of Malta's second electricity interconnector (IC2) linking the country to Sicily, an EIB statement said.
The interconnector is scheduled to begin operating in the first quarter of 2027 and will increase electricity interconnection capacity between Malta and Italy, enabling electricity imports from the EU market, strengthening grid stability, and supporting demand growth and the integration of renewable energy in line with Malta's decarbonisation objectives.
The project involves the construction of a 122km alternating current subsea electricity interconnector, operating at a nominal voltage of 220kV and a frequency of 50Hz, with a transmission capacity of 225MW.
The cable will connect the Enemalta terminal station in Magħtab, Malta, to Terna's substation at Contrada Cimillà in Ragusa, Sicily.
The operation also benefited from earlier EIB advisory support during project preparation, including the assessment of its financial and economic viability, ensuring the project's maturity, financing eligibility and compliance with EU requirements.
Finance Minister Clyde Caruana said the second interconnector represents a key investment in Malta's long-term economic stability.
"The second interconnector is an important investment in Malta's long-term economic stability. By strengthening our energy infrastructure, we reduce vulnerability to external shocks, improve supply security, and support stable energy prices for households and businesses," he said.
EIB Vice-President Marek Mora said that electricity interconnectors are essential to a secure and integrated European energy system.
"Electricity interconnectors are essential to a secure, integrated and decarbonised European energy system. By backing Malta's second interconnector with Italy, the EIB is strengthening energy security, facilitating cross-border electricity exchange and renewable integration, while ensuring that growing demand can be met in a reliable and sustainable manner," he said.
The total project cost is estimated at €296.68 million, with €165.78 million financed through EU funds under the European Regional Development Fund, alongside the EIB loan and the Maltese government's own resources.
The EU bank also provided advisory support through JASPERS, a joint initiative of the EIB and the European Commission, offering guidance on project design, procurement and implementation.
The government will retain ownership of the assets, while Interconnect Malta, a fully government-owned company, will be responsible for issuing tenders, implementing the project and operating the infrastructure under a public service obligation.
The full interconnector capacity will be made available to Enemalta under a capacity agreement, with an annual tariff charged for its use.
The European Investment Bank has supported the Maltese economy since before the country's accession to the European Union, with its first project signed in 1979 to expand the commercial port of Valletta's Grand Harbour, the statement said.
Since then, EIB Group financing in Malta has exceeded €1 billion, supporting sectors including SME access to finance, urban regeneration, climate action and telecommunications.