Power station has to change fuel by 2020

A European Union directive which stipulates lower carbon emission levels that Malta must abide to and ratify, binds the government to find a cleaner alternative to Heavy Fuel Oil by 2020.
Finding an alternative to the fuel currently powering the Delimara power station's new extension must be achieved at a cost of up to €220 million, depending on the technology used.

The new directive would reverse the government's decision in November 2007 to lower emission levels and use HFO, as long as it conformed to the then-existing EU emission limits. This decision was instrumental in the choice of Danish firm BWSC as the suppliers of the new Delimara extension.

A public consultation document recently issued by the Malta Environment and Planning Authority, says that the Industrial Emissions Directive must be transposed by January 2013.

But Malta managed to obtain an exemption from the law's limit values until 2020, instead of 2016.

An impact assessment carried out by Ernst & Young in 2008 identified the lowering of emission limit values for large combustion plants, such as Delimara, as the main impact arising from this law.

"Given that Malta managed to obtain an exemption from these limit values until 2020 (instead of 2016), costs were estimated at between €64 million and €220 million depending upon the technology which will be found to be feasible to implement in order to achieve these emission limits," E&Y says in the report.

The cost is considered to be substantial relative to the economy, ranging between 1.1% and 3.9% of GDP for 2008.

The choice of technology has not yet been communicated to MEPA by Enemalta, the national energy corporation, and it is possible that expenses will be different to those estimated if Enemalta limits the operating time of the boilers and gas turbines at Delimara Power Station after 2020.

According to the report the expense could indirectly impact small businesses, if electricity tariffs are raised to recover costs.