New renewable energy policy by summer – Konrad Mizzi

The government will launch a holistic policy framework on renewable energy by the end of summer in its attempt to reach the 10% target set by the EU by 2020, energy minister Konrad Mizzi said.

Mizzi was speaking during an information session on the second EU call of NER 300, a funding programme for innovative renewable energy technology and carbon capture and storage projects.

"We will work in hand with the private sector to ensure that Malta meets its EU targets by 2020," Mizzi said this morning.

These projects are aimed at producing renewable energy as Malta struggles to reach its target set by the EU renewable energy directive.

Malta's current renewable energy production is still at 0.4% of its gross final energy consumption, seven years ahead of its 2020 target to produce 10% of energy through alternative energy sources.

"We are committed to provide clean, cheap and sustainable energy," Mizzi said as he reiterated the government's intention to enact its electoral manifesto promises.
Besides launching the renewable energy policy by summer,  Mizzi said the government would be introducing the budgetary measures to incentivise the purchase of solar energy next month.

The second call for the NER 300 projects comes after the proposal for a floating wind farm wind farm proposed by Hexicon AB, which was Malta's sole applicant in the first call in November 2010, failed to make it to the list of 17 companies from 13 EU member states projects eligible for €1.3 billion in EU funding.

The floating wind turbine concept put forward by Hexicon AB for Sweden, Cyprus and Malta was excluded after failing the European Investment Bank's technical and financial due diligence conducted nine months ago.

However, the proponents of the project insisted that despite their exclusion from the first call for EU funding, the project attracted sufficient interest and backing from financial institutions and energy companies to ensure that they can proceed with the project.

Hexicon AB were invited to participate in the second call for NER-300 funding after the concept was fine tuned after the EIB's due diligence.

NER300 is a financing instrument managed jointly by the European Commission, European Investment Bank and Member States, funded by the sale of 300 million of carbon dioxide allowances. Under the first call for proposals the European Commission in December 2012 made funding awards for a total value of €1.2 billion to 23 renewable energy projects. This amount is estimated to have leveraged additional funding of over €2 billion from private sources.  

The second call for proposals was launched on 3 April 2013, and applications are due by 3 July 2013.  Awards will be funded from the sale of the remaining 100 million allowances and unused funds from the first call.

The deadline for Member States to complete the eligibility assessment for Projects and forward the Application Forms from the Project Sponsor together with the Submission Forms to the European Investment Bank is 3 July 2013.

Until now, Malta is the only member state among the EU27 that still depends totally on fossil fuels to produce all its electricity needs.

Charles Buttigieg from the energy ministry explained that Malta also has a target to produce 10% of its energy used for transport through renewables. He explained that Malta's power plants produce 71.3% of the country's emissions, with the rest produced by transport.