Time and again, this government has shown that limitations and challenges can sharpen our determination, strengthen our resilience and push us to be more innovative.
This is the spirit behind Malta's Energy Shift: A Sustainable Power Transition, our national plan for the future of energy. It is a plan rooted in ambition, but also in responsibility. It recognises the global realities around us - volatile prices, geopolitical uncertainty, climate obligations, and the urgent need to modernise our infrastructure. Above all, it places people at the centre of the transition.
Malta is moving towards a carbon-neutral economy while ensuring that families and businesses are protected. The transition that is required cannot be built on new burdens. It must be fair and practical. That is why our energy plan rests on five essential pillars: affordability, security of supply, sustainability, diversification, and a consumer-centric approach.
Affordability remains a top priority. In recent years, while international energy markets faced unprecedented instability, Malta maintained stable energy prices and among the lowest tariffs in the European Union for households and businesses. This was the result of our deliberate decisions. We set a clear policy direction that puts stability first. We provided support. We effectively negotiated. Since 2022, hedging alone has saved more than €116 million.
We are determined to preserve this stability. That is why we will not liberalise electricity distribution. We believe in safeguarding affordability and security. In this legislature alone, Malta successfully negotiated four derogations in the energy sector, including an important framework with the European Commission allowing us to protect consumers from international price shocks through subsidies. Once again, Malta led from the front.
The second pillar is security of supply. This is another national priority. Our plan combines local generation, renewable energy, interconnections, grid investment, backup plants, and energy storage.
The second interconnector with Sicily is another major step forward. With a capacity of 225MW and an investment of €300 million, it is currently the largest capital project in Malta. Works are progressing well in Malta and Sicily, and we expect it to be energised in less than a year.
Our energy policy is clear. Malta is not, and will not be, dependent on a single source of energy generation. We will continue to diversify our sources, because that is what makes us resilient.
That is why we are exploring every option. We are planning for the third interconnector to link Malta with Sicily at a different voltage level from the first two: 380kV, connecting us to the same voltage level as mainland Europe. Interconnect Malta will issue tenders for the design and financial engineering, which will lay the groundwork for the necessary permits in Malta and Italy. The tender will be published in the coming weeks.
Significantly, IC3 has been included in the European Union's Ten-Year Network Development Plan, which is intended for credible and sustainable projects. IC3's inclusion is therefore a clear signal that the European Union considers this an important project.
We chose Italy because it makes the strongest sense from a financial-feasibility perspective, avoiding the risk of placing additional costs on people. At the same time, this connection still provides technical diversification, since it links us to a different voltage level from the one used by the first two interconnectors.
This is not the only interconnection we are considering.
We recently also issued a call to explore interest in projects with North Africa, where wind and solar energy could be generated and transmitted to Malta. We are also keeping open the long-term possibility of a hydrogen-ready gas pipeline, thereby working on several fronts to strengthen Malta's energy future.
We continue to invest heavily in the distribution network. Enemalta's nine-year plan includes 15 new distribution centres. We are also planning infrastructure that can support shore-to-ship systems in our ports and prepare for the electrification of aviation. A new 132kV cable between Malta and Gozo will further strengthen Gozo's resilience.
The third pillar is sustainability. Renewable energy has grown significantly, from 3% in 2013 to 17.2% today. Our target is to reach 25% by 2030, excluding the potential contribution of offshore renewables.
Offshore renewable energy is one of our most important long-term opportunities. Through the Exclusive Economic Zone, we have opened a new frontier for clean energy development. We carried out a pre-market consultation, finalised a national policy, identified the best two sites and launched a pre-qualification process that . This is a complex and evolving technology, but never before has Malta taken such concrete steps in this direction. The project could eventually deliver up to 300MW of clean energy.
Sustainability is also being advanced through solar panels on rooftops, strengthened feed-in tariffs, solar farm policy, public building installations, and incentives for domestic batteries. Nearly 5,000 households have already installed home batteries with government support. Large-scale battery storage projects are also underway.
Our environmental transition goes beyond electricity generation. Street lighting is being replaced with more efficient systems. WasteServ's ECOHIVE complex is transforming waste into energy, including a €75 million organic waste facility that will generate 18.4GWh annually -- enough to power around 2,500 families.
The fourth pillar is diversification. Our current and future portfolio must be balanced and resilient. This includes interconnectors, renewables, storage, possible links with North Africa, biofuels and green hydrogen when these become commercially viable. We are exploring every serious option that can strengthen national resilience while helping us meet our climate targets.
The fifth pillar is consumer empowerment. The transition will only succeed if people are part of it. We will continue supporting grants for electric vehicles, domestic batteries, efficient appliances and renewable energy systems. We introduced Malta's first Green Bonds, allowing citizens to invest directly in national sustainability projects. We are also preparing a scheme for people to invest in solar panels installed on Water Services Corporation reservoirs, receiving a return while contributing to clean energy.
This plan is not static. It is a living document, already being implemented, but flexible enough to respond to a changing world. The pandemic, wars and global disruption have shown that Malta cannot take stability for granted. Yet our country emerged stronger than many others because we were and are proactive, we planned, negotiated and acted with competence.
We know where we are going, and we need to keep on moving strongly in this direction.
Miriam Dalli is Minister for the Environment, Energy and Public Cleanliness