Budget 2025: Government reaffirms commitment on offshore wind farms

The 2025 Budget reaffirms the government's commitment to developing offshore wind farms in Malta’s Exclusive Economic Zone, which extends up to 370km from its coastline, and solar energy projects in its territorial waters, which extend to 22km from its coastline. 

The budget clearly indicates that Malta is opting for floating offshore wind farms because the bathymetric characteristics of Malta’s territorial sea severely restrict areas suitable for wind turbines fixed to the seabed.

After six potential areas for renewable energy projects were identified earlier this year, two areas where such development would have the least environmental impact were later pinpointed. The government is also looking into nearshore solar projects.

The budget describes the government’s vision in this sector as strategic, which will be developed step by step. The first step is the implementation of the second interconnector aimed at strengthening network stability, followed by investment in mass energy storage using onshore batteries. The final step involves issuing a preliminary market consultation to assess interest and market readiness for this investment.

Next year will also see the continuation of works commenced last year aimed at strengthening 82km of electricity cables in 19 localities, along with upgrades to substations, distribution centres, and lighting feeders, among others.

Regarding water infrastructure, the budget reaffirms the implementation of a national plan worth €310 million over 10 years, through which the Water Services Corporation aims to meet demand by supplying “high-quality water.” 

It also reaffirms the commitment to expanding the reach of New Water, which is good quality water used for agriculture derived from sewage treatment plants.

Waste: Free compost for farmers and bulky waste 

The budget also refers to progress being made in turning organic waste into compost, which will be offered “free of charge to farmers.” WasteServ is also working on several large-scale projects designed to improve existing infrastructure.

These include a new facility that will separate bulky mixed waste, which often includes recyclable materials like metal and wood. Thanks to this facility, Malta will reduce 47,000 tonnes of waste from its landfill.