Value for money of windfarm project

It seems that plans for the first US offshore wind farm are now underway (December 29). This project would comprise 130 turbines and would provide enough power for about 400,000 homes. The cost of this project is estimated at €711 million. The wind farm will be 7.5 km away from the mainland.

Earlier this year, the Government of Malta announced its intentions of building an offshore wind farm on Is-Sikka l-Bajda and is in the process of submitting an application for a permit with Mepa in the coming days (January 5). Indications are that this project will comprise 15 turbines installed two kilometres off the coast of Mellieħa. It is reported that this project will cost €130 and provide electricity for 21,000 Maltese households.

On comparing the two projects, one cannot but notice that while the US wind farm will provide electricity for 400,000 homes at a cost of €711 million (or €1,780 per home), the Maltese project will only provide electricity for 21,000 Maltese homes at a price tag of €130 million (or €6,190 per home). That is, cent for cent, the US wind farm seems to be more than 3.5 times more cost-effective than the Maltese wind farm.

Moreover, according to the US Energy Information Administration, an American household consumes 31 units of electricity a day; the typical Maltese household only consumes around 10 units a day. So a wind farm supplying electricity for 21,000 Maltese homes would only cater for 7,000 American homes. Therefore it follows that the US wind farm will generate 57 times more electricity than the Maltese wind farm for less than six times the capital expenditure. Something is clearly amiss.

Can the Ministry for Resources and Rural Affairs (which absurdely seems to be both the developer and through MRA, the energy regulator in this case) explain why the Maltese wind farm will be 10 times less cost-effective than its American counterpart, especially when the Maltese wind farm will be much closer to shore?

Is the Maltese taxpayer getting a good deal here? Is there real value for money in this project? Is an offshore wind farm on Is-Sikka l-Bajda really the best renewable energy option for Malta?

Why has the ministry ignored the advice of energy expert Edward Mallia (who formed part of an advisory committee appointed by Minister George Pullicino to examine the viability of the Sikka l-Bajda site) who recommended that the government considers two alternative sites - one onland, one offshore - before deciding to run the Is-Sikka l-Bajda project?

How can the government risk €130 million of the taxpayers' money without first preparing and presenting a holistic energy (and renewable energy) plan for the Maltese islands?

What long-term studies have been carried out at Is-Sikka l-Bajda to establish the actual wind potential in the area?

Is the government shooting from the hip here, as has unfortunately become the norm? The Maltese taxpayer deserves an explanation.