Seminar criticises draft energy policy

Malta's long-awaited draft energy policy received a critical welcome from a well-attended high-level expert seminar at the University last Wednesday, with speakers proposing a long list of improvements.

The Seminar on the National Energy Policy Proposal was organised by the University's Institute for Energy Technology (IET). "On the positive side, the new policy offers a set of policy actions and an action plan," Enemalta's former chairman, Professor Robert Ghirlando of IET, stated, "while formally recognising the role of renewable energies, and formalising Enemalta's commitment to them".

However, the policy's presentation and subject areas needed reorganisation as well as greater coherence with other recently issued official documents. These were the Consultation Paper on the Liberalisation of the Inland Fuel Market, the Draft Renewable Energy Policy for Malta and MIIIT/Enemalta's Electricity Generation Plan 2006-2015.

"There is not enough quantification in the draft energy policy", Professor Ghirlando continued, "while many statements are not backed by statistical data. Moreover, there are contradictions with the other documents. For example, the draft energy policy states that the proposed electricity cable to Sicily is necessary to improve security of supply. However, the Enemalta Generation Plan warns that the cable would require backup capacity."

The draft policy also claimed that wind energy development would require subsidisation, while the draft Renewable Energy Policy indicated that wind-generated electricity cost less to produce than conventional electricity from fuel-burning power stations.

Focusing on the draft energy policy's treatment of energy efficiency and renewable energies, IET's executive director Mario Fsadni pointed out that while investment in these technologies would be made by Government and consumers, the latter needed both information and financial incentives to adopt them. Unfortunately, the draft policy highlighted negative financial aspects of renewable energy technologies while not recognising the present direct and indirect subsidisation of fossil energy.

"Sixty per cent of Malta's fuel imports are used to generate electricity. There is direct and indirect evidence that energy efficiency in Malta can be improved in the intermediate and long term - in electricity generation, distribution and end-use in all sectors," Mr Fsadni emphasised.

The major increase in air-conditioner use and the lengthening of the related summer peak period were critical issues. The European Commission directive on energy performance of buildings must be transposed into national law and enforced. Electricity meter readings and billing systems should also be reformed so consumers could better monitor their actual consumption.

Successful oil exploration around the islands would not reduce Malta's oil dependence, according to Ing. Robert Farrugia of IET, since the absence of national refining capacity meant that oil found would have to be processed abroad. While identifying the development of renewable energies as a way to reduce oil imports, the draft energy policy showed many shortcomings and inconsistencies in its treatment of each energy source.

With the decision for a 200 Mw cable connection to the Sicilian electricity grid apparently taken by Government - but no information about its cost - "its usefulness will depend on the surplus Sicily itself has, if any. In the 2004 blackout Italy emerged as importing 14 per cent of its electricity, while a fully connected European grid does not yet exist," he warned. A number of issues relating to a possible switch to imported gas from fuel for electricity generation also needed clarification and rigorous costing, as did contingency plans for war, terrorism and natural disasters

Ing. Farrugia emphasised that the draft policy's statement "that a renewable energy contribution to electricity supplies of five per cent or less 'cannot be considered as significant' was questionable. Any percentage is 'significant' as it will help attain part of any national targets. Moreover, the projects will serve as demonstrations for future growth in the sector. Even a one per cent contribution will be 'significant' because it will save three to four times the primary fuel required to generate the same amount of electricity, and thereby millions of liri spent on imported fuel - converted to electricity at 28 per cent efficiency."

Professor Edward Mallia, lecturer at the University's Faculty of Science, was highly critical of the transport section of the draft policy. "Transport accounts for 40 per cent of Malta's energy use", he stated, "and with 0.7 vehicles per inhabitant, compared to EU's 0.5, Malta's energy use in road transport is 15-20 per cent less efficient."

It was almost too late to integrate land use and transport planning, he added. Present Government policy was driven by the PTAs demands, not by efficiency considerations, while new mass transit systems would only work if accompanied by strong restrictions in private car use.

A clear statement of fiscal, market and investment policies needed to deliver the energy policy's goals was a priority, IET's Charles Yousif said. Funds from the EU's Cohesion Policy 2007-2013 should be allocated to energy efficiency and alternative energies - but time was running out for obtaining funding in 2007, as no projects had been prepared.

The draft policy did not provide for education of either students or the public in energy saving and related topics, while provisions for research and development were inadequate. Proposals about investments and industry focused on oil rigs and related industries, but left out the need to develop Maltese expertise on maintenance and repair of renewable energy systems or build up existing national centres of energy excellence to international standards.

Proceedings of this seminar are posted at http://home.um.edu.mt/ietmalta