Oil and alternative energy sources

Malta has no domestic production of energy sources and, hence, depends totally on oil imports.

A quick glance at some headline figures relating to energy supply and consumption paint a very worrying picture. Statistics up to 2004 show that per capita, our energy consumption is significantly lower than the EU 27 average. The figure for emissions is within a similar range. This is where the good news stops.

Our energy import dependency is twice the EU average and this also applies to our carbon dioxide intensity which is 50 per cent higher. Add to this the fact that our gross inland consumption has increased by 53 per cent over the period 1990-2004.

The latest statistics clearly demonstrate an ever-increasing thirst for this essential commodity. This is surely a reflection of the significant growth in the economy and all-round improvement in our standard of living. Up-to-date figures show that Malta produces a mere 0.36 per cent of its energy needs from alternative sources. All these facts must then be welded to the grave reality of burgeoning oil prices that have increased almost threefold in the last five years. Faced with these statistics, the case for alternative and renewable energy sources becomes pressingly clear.

The most likely question is where to begin to address this unavoidable challenge. Clearly, the problem is both environmental and financial.

Like other fossil fuels, oil is a finite resource. This will most likely be reflected in ever-higher prices as demand will continue to outstrip supply. This reality will continue to be an inevitable burden on our economy. Apart from the obvious consequences in terms of rising prices, it does not bode well for inflationary pressures. It is interesting to point out that the final energy consumption is shared as follows: households - 19 per cent; industry - 10 per cent; commerce - 12 per cent and transport - 59 per cent.

Incidentally, the share of industry in final energy consumption is far below the EU 27 average (27 per cent). This is likely to increase with a growing foreign investment base. All this must surely create strains on our sustainable growth patterns for the future.

This leads us to the second obvious challenge regarding the environment. The burning of fossil fuels inevitably leads to significant emissions both in greenhouse gases and, as we have observed from consumption by the transport sector, in higher levels of CO2 emissions. The creation of sustainable alternative energy resources will directly affect the latter emissions.

As far as solutions go, the key word is energy interchangeability. It would be foolhardy to propose or even believe that we can make do without oil and its derivatives. What is clear is that we need a national consensus and commitment to implement a realistic programme aimed at exploiting alternative energy sources. Transition to alternative fuels will neither be simple nor as convenient as the use of oil today. This will involve much time and financial investment.

It is impossible to detail the various sources available to us in this short article but, to mention a few, one would point out the following: Solar energy; wind energy; wave energy; thermal conversion; hydrogen and fuel cell technology; natural gas conversion and efficient conservation of energy in buildings etc.

These are among the most apparent solutions towards mitigating the rising problems of energy generation. The uptake of various technologies requires a series of initiatives that should incorporate cooperation between the government, the energy regulatory authorities and, last but not least, businesses. All this is essential within a framework for the sufficient provision of investment capital that can be tapped through the European Union.

Although initially negligible, the application of these various technologies should contribute in no uncertain terms towards a clear and immediate awareness to the problems of energy conservation and reduction in pollution through emissions.

The Sant'Antnin waste treatment plant and the bio-gas project at Magħtab should serve as beacons towards the ultimate goal. Furthermore, targets for renewables as laid out by the EU by 2020 should further reinforce our commitment in this regard.

There is no easy or quick process. The transition towards a wider use of energy sources will be painstakingly slow unless we are overtaken by events much larger than ourselves. What is clear is that it will require a wider commitment from all of us in addressing the looming surprises of the post-petroleum paradigm.