Chamber hails ‘business-boosting’ €140 million green energy plan

The Chamber of Commerce has toasted the government’s plans to invest €140 million in aid to renewable energy producers as a scheme that will boost business on the island.

The European Commission last week found that Malta’s plans to support power generation from renewable sources are in line with EU state aid rules. Malta plans to grant state aid to photovoltaic energy operators in the form of a premium payment on top of the market price. The scheme – which will run – until 2020 – will also be extended to onshore wind farms if an eligible site is approved within the next four years.

The Chamber said in a statement that the scheme will improve Malta’s competitiveness in the renewable energy sector, and that it will encourage investment and economic growth.

“Apart from the obvious benefits that these schemes will allow Malta to reduce its dependence on fossil fuels and therefore improve air quality, the scheme will also encourage investment in green energy, providing a boost in a growing economic sector,” it said.
It added that the scheme will be instrumental for Malta to reach its ambitious EU2020 target, by which renewable energy must constitute 10% of the country’s total electricity production by 2020. As of 2014, only 4% of electricity production was from renewable sources.

“Achieving the remaining 6% in a timely fashion will avoid Malta incurring unnecessary penalties or resorting to costly last minute solutions,” it said.