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Government set to publish final agreement with Shanghai Electric Power
Discussions between Enemalta and Shanghai Electric Power concluded • Government to sign Chinese deal agreement in coming days
8 December 2014, 2:58pm
Staff Reporter
Staff Reporter
2 min read
Now that the discussion between Enemalta and Chinese-state owned company Shanghai Electric Power have been concluded, the government is set to sign the final agreement in the coming days.
In a statement, the government said this deal would be the biggest investment to ever reach Maltese shores: "Apart from the direct cash injection, SEP will be investing in Delimara plant 3."
The government said Enemalta and SEP have also agreed to joint ventures which will see the setting up of a company providing alternative energy to the European Market and a second to service SEP plants in the region.
“The agreement will place Enemalta on a strong foothold and will contribute to the country’s economic growth. For the first time in its history, Enemalta will be participating in projects beyond our shores.”
The government said it would be publishing the final agreement and a discussion will be held in parliament.
According to new timeframes announced by Energy Minister Konrad Mizzi, Malta will be making use of gas-generated electricity by June 2016. A 200MW interconnector connecting Malta to the European grid will be commissioned in early 2015 as works on the interconnector are in their final stages.
The June 2016 deadline also means that the BWSC plant would have been converted to gas while the ElectroGas plant is up and running.
Around 50% of Malta’s required electricity will be generated by the ElectroGas consortium, while the BWSC plant – to be converted to gas by Shanghai Electric Power – would cater for 30% while the interconnector would provide for the rest of the 20% of the energy mix.
The agreement with the Chinese state-owned company does not dictate the energy dispatch that Enemalta should buy from the converted the Delimara plant 3 - the BWSC plant - but it will be up to a technical committee to decide this. Plant 3 will be converted to gas by SEP. The €320 million cash injection in Enemalta meant that SEP will acquire a 33% stake in the company.
