15% of Malta interconnector energy is powered by renewables

Just 14.8% of all electricity transmitted to Malta through the interconnector in 2019 was derived from renewable sources of energy produced in other countries.

When this amount of is added to locally produced renewable energy, in all five years leading to 2019 Malta would have exceeded the 10% threshold for electricity being supplied from renewable sources, a Central Bank report shows.

The information derives from estimates by the Italian power exchange Gestore del Mercato Elettrico (GME).

But the report also calls for more investment in renewable energy because Malta still failed to reach the mandatory threshold to have 10% of its total energy supply from locally produced renewables in 2020, having to resort to buying energy credits from other countries.

In 2020, Malta acquired €2 million in renewable energy “credits” from Estonia to reach its EU targets for that year, and it had previously also entered in a €1.4 million seven-year deal with Bulgaria for 2013-2020.

And although production of renewable energy doubled from 4.4% of total energy supply in 2015 to 8.2% in 2019 thanks to more investment and solar energy initiatives, Malta still fell short of its renewable energy targets.

In 2019, the share of renewables as a percentage of all electricity produced locally reached 10.5%; but when imported interconnector energy is included, that share falls to 8.2%.

Significantly, in 2016 a drop in energy generation from local power stations as a result of greater use of the interconnector saw renewable energy peaking at 16% of all locally produced electricity. But even in that year, only 6% of Malta’s total energy supply – including that imported from Sicily – was derived from renewables.

In subsequent years, with increased production from the Electrogas gas plant, the share of renewables fell again to just over 10%.

The Central Bank analysis shows Malta making steady progress towards the 10% target. But while the interconnector establishes “a clearer picture regarding Malta’s environmental footprint”, this should “not be taken as a vindication of Malta’s energy policy”.

Indeed the CBM says further efforts are needed to even exceed Malta’s set targets by using solar, wind, other natural endowments or a combination of these, to shift Malta strongly into renewable energy production.

Imported renewables do not event count when establishing the share of locally generated renewable energy, the latter being the 10% target Malta has to reach.

On an optimistic note, the CBM says Malta has made bolder steps in shifting its supply towards renewable energy and that “with further investment, Malta may soon achieve its set targets outright, at least in respect of electricity generation”.

Share of locally produced renewable energy

* Includes electricity bought from interconnector and power stations

** Includes local production from power stations and renewables only

Share of all imported and locally produced renewable energy of total electricity supply