Our vision for digitisation of Malta’s energy system

I had the pleasure of attending the Energy and Water Agency and the Institute for Sustainable Development conference about the digitisation of the energy system in Malta.

Malta, as a small island nation, has always had to be innovative and resourceful, especially in how we manage and generate energy. Digitisation offers us an incredible opportunity to enhance our energy system, improving efficiency, sustainability, and reliability.

Malta’s journey toward the digitisation of energy did not happen overnight. One of the most significant milestones in recent years has been the deployment of smart meters in 2009, a brainchild of the Nationalist government at the time.

These smart meters started not only providing real-time data on electricity consumption to both consumers and Enemalta but helped manage better demand, identify inefficiencies and reduce wastage and therefore reduce energy revenue losses.

Another important energy achievement is the Malta-Italy interconnector that became operational in 2015. This is another brain child of a Nationalist government at the time. It provided a critical connection to the European grid. The 200MW interconnector allowed Malta not only to import electricity when necessary but also to eventually take part in digital energy export trading platforms that will become a core part of Europe’s future energy market.

Having access to a diversified electricity supply through a digital platform has already improved energy security and stability for Malta, reducing our reliance on local fossil fuel power stations.

Having said that, I must state the obvious – we are in no position to export energy at this point in time given government’s renting of standby generators at Delimara to boost our generation supply. Hopefully, when the delayed installation (due to a delayed political decision) of the second interconnector is in place, exporting might become a possibility.

Malta has also embraced renewable energy through increased use of solar power, particularly by leveraging digital technologies to optimize solar energy production and integration into the grid. Through smart energy management systems, solar panels installed across the island contribute not just to individual homes but also to the grid at large, allowing for more efficient use of solar power when it is available.

While Malta has achieved a lot, there is still much more work to be done. As the world moves toward decarbonisation and cleaner energy systems, digital technologies will play a critical role in helping us meet climate goals, ensuring energy security, and maintaining affordability for consumers.

The introduction of the smart meter project was just the first step towards digitalisation and it hasn’t been utilised to its full potential.

Better use of smart meters can lead to identifying points within the Low voltage network that suffer from low or high voltage, pre-empting damage reports by consumers thereby leading to a better stable service and reducing compensation claims.

Further digitisation of our energy system will be impacted by the derogation limiting private investors from competing with Enemalta in selling electricity until 2027, which if necessary may be extended at best until 2035. The liberalisation (not privatisation as some would prefer to twist it), is not an if, but when. We need to work on the fundamentals which need to be in place for when the derogation for the current monopoly in electricity distribution expires. This includes full transparency of how energy is being produced and bought by the operator. Rather than bury our head in the sand and imagine it won't happen, liberalisation of the electricity market requires us to prepare for it while strengthening the regulator.

This exercise can also serve as an opportunity to open up the country for more green energy investment and transform it in a renewable energy hub. This will give companies options to buy green energy and avoid having to buy carbon credits.

Another area where digital technologies will be crucial is in the integration of energy storage solutions. As we increase the share of renewables in our energy mix, there may be times when energy production from solar or wind exceeds demand. By investing in digital energy storage systems – such as batteries, and even hydrogen storage – Malta can store excess renewable energy and release it when needed.

As we continue to digitise our energy system, we should also aim to empower consumers by giving them more control over their energy use. Maltese households could have access to smart home energy management systems to automatically optimise energy use – turning off appliances when they’re not needed or shifting energy-intensive tasks to periods when electricity is cheaper. This can be done through off peak tariffs, which should however be truly the cheapest tariffs. I reiterate that the current ‘off-peak tariff’ regime for electric vehicles of 12c98 cannot be considered off-peak when the lowest tariff is 10c5 (2c5 cheaper).

This is our vision as a future government:

1. Maximising the potential of smart meters
2. Digitising further our network for peak shedding
3. Decentralising generation through virtual power plants
4. Integration of energy storage solutions
5. Preparation for the eventual distribution network liberalisation
6. Incentivising consumers to embrace energy management systems

A Nationalist government will continue to foster innovation and collaboration between the public and private sectors. Malta is uniquely positioned to be a testbed for new energy technologies, given our size and existing infrastructure.

The digitisation of Malta’s energy sector is not just about using the latest technology; it’s about building a more sustainable, efficient, and resilient energy system for the future. Through the use of smart grids, renewable energy platforms, energy storage, and consumer empowerment, we have the opportunity to make Malta a leader in this transition.