Malta mulls link to European power grid

The government is actively considering the possibility of using a good part of its EU structural funds to connect the island to the European electricity grid.

Sources close to Enemalta told The Times yesterday a formal proposal was submitted recently to the government to include the issue among the priorities when deciding how to allocate the €805 million of EU funds to be spent during 2007-2013.

Prime Minister Lawrence Gonzi, who yesterday took part in the first session of an EU summit discussing the Lisbon Strategy and a new energy policy for Europe, hinted at the possibility of joining Malta to the European electricity grid but without giving any details.

The sources said the idea is to connect to the grid through a submarine cable at the nearest available point, probably Sicily. The project has been on the cards for a number of years. Preliminary studies have shown that the cost of such a project would be about Lm60 million (€138 million). If the plan materialises, the EU will co-finance 80 per cent of it.

Connecting to the grid will enable the country to buy its energy needs directly from Europe. This will mean not having to depend wholly on the supply produced by the power stations in Malta. It will also offer Enemalta the possibility of selling surplus power to the EU market.

In a Green Paper issued by the EU a few weeks ago as a basis for a new energy policy for Europe, Malta and Cyprus were noted as the only member states not connected to the grid.

EU leaders yesterday discussed the Green Paper and agreed to formulate a common EU energy policy. This will include the need to increase the security of supply and diversify markets, promote competitiveness by ensuring the full, effective and transparent implementation of internal market legislation and promote environmental sustainability with a target of reducing the consumption of energy as well as introducing alternative sources of energy. Dr Gonzi said jobs and growth in the context of the Lisbon Strategy were discussed at yesterday's meeting with the EU leaders giving the green light for a new range of economic and social targets to boost the Union's economy.

He said that particular importance is being given to the need for higher investment in research and development. EU leaders agreed on an overall EU target of three per cent of GDP by 2010. Malta will aim to treble its current investment in R&D to 0.75 per cent from the current 0.273 per cent of GDP.

They also agreed to attempt an overall target of six million new jobs during 2005-2007.