Malta, ‘potential exporter’ of solar energy

There is huge potential for Malta to become an exporter of solar energy according to the recently appointed Chairman of Malta Enterprise, Mario Vella.

Vella, who was present in Dalian for the signing of the Chinese memorandum of understanding, said negotiations were underway to secure Chinese investment in projects related to alternative energy.

Aside from the undisclosed cash injection into the ailing Enemalta Corporation, the Chinese MOU includes the setting up of a joint venture between Malta and China to assemble photovoltaic units for sale in the European Union and the setting up of an energy service centre which would service the Mediterranean, African and Gulf region.

According to Vella, the renewable energy investment also meant that Malta would be on target to secure the 2020 emission reductions target.

"Negotiations are being held to secure Chinese involvement in alternative energy projects, which would help us meet emission targets. Moreover, it will prepare us in undertaking an important leap forward as potential exporters of solar energy," he said.

Vella insisted that the separate investments will not only help turn around Enemalta but will also lead to the creation of sustainable jobs.

China's hefty investment to Enemalta will also mean that Shanghai Power Electric, a subsidiary of Chinese government-owned China Power Investments Corporation, will acquire a stake in Enemalta. Although it has not yet been confirmed, Junior Minister Edward Zammit Lewis claimed it would be around 35%.

The partial privatisation of Enemalta is "a major step forward", according to Vella.

"It shows that the government is comfortable with challenges and opportunities of globalisation and of the ongoing reconfigurations of the world economy. China is one of the emerging global economic powers with an increasingly decisive role in the new world economy," he said.

"It will also reassure credit rating agencies that Malta is determined to resolve an issue which is critical for the island's creditworthiness."

Vella also insisted it would "be absurd" for Malta not to have strong economic relations with China when "all major economies were competing to do so".

According to Vella, the Chinese investment was already stimulating both domestic and foreign business interest.

"It adds to Malta's attractiveness as a location for foreign direct. The prospects for Maltese business, including services, in this context are very exciting," he said.