The cheapest energy

Many are no doubt familiar with the old mantra in the electricity industry that "the cheapest energy is the energy that you do not use" and "the most expensive energy is the energy that you cannot have".

While remaining committed towards the pursuit of a low carbon economy, emerging research indicates unambiguously that it is far more economically efficient to reduce electricity demand than it is to provide low carbon electricity such as renewables.

As I see it, the optimal mix would be a blend of energy efficiency and renewables, possibly moving to the latter option after having explored the former to the hilt.

This issue should not be a bone of contention on the island but the mind boggles when one recalls that way back in 2008 a National Energy Efficiency Action Plan was made public with energy efficiency being listed as a key objective in the government's energy policy.

Things become somewhat confusing when one suddenly realises that the government does not actually have an energy policy in place, since we are still mulling over the consultation process of a proposal for an energy policy for Malta while the SEA (Strategic Environment Assessment) of the said policy document is - according to the tender recently adjudicated - not likely to be completed before November 2010.

That Malta does not even have an energy policy in place is confirmed by the action plan itself which states on Page 7 that it was developed within the framework of the draft energy policy published in 2006 and the draft sustainable development strategy for Malta of 2008.

Although the action plan had argued correctly that it is widely perceived that the potential for improving energy efficiency exists, please allow me to ask how many of this newspaper's esteemed readers are familiar with the contents and main thrust of this report. At least at executive summary level.

It is laudable that we should be committed to ensure that the public sector becomes a role model in energy efficiency but in actual fact what results have been achieved so far?

Equally, the action plan had recommended the promotion of increased awareness and behavioural change by consumers on an individual level. Allow me to enquire - how many consumers have seen their awareness heightened, except through the spike in utility prices that has brought about a new level of fuel and energy poverty in the Maltese islands?

The action plan recommended the use of legislation and fiscal instruments judiciously, for example by setting standards for energy performance in buildings, when to the best of my knowledge no such certifications have taken place to date, although April 2010 had been identified as a firm date line.

During an interesting seminar that I recently part attended organised by the Institute for Sustainable Energy of the University of Malta at Villa Bighi, I followed attentively a presentation on Efficiency in Energy Supply and Use in Malta.

While certain steps connected with NEEAP have been taken in the domestic sector, and support schemes for industry and SMEs introduced at Malta Enterprise level, the extent of the take-up has still not been ascertained.

Equally we are not yet in a position to determine if the funds allocated will suffice to meet the demands of the applications submitted.

One must bear in mind that although the NEEAP was launched two years ago, it is effective up to this year, and is also meant to be reviewed regularly. By when and how often was not clearly spelt out.

What will happen when certain financial instruments are exhausted?

What developments have taken place regarding the long overdue promised introduction of an attractive feed in tariff for RES and CHP electricity production?

What is the extent of energy savings in state owned buildings, when according to the recent Auditor General's report, the government has not even quantified the extent of conventional energy that it uses up in its own entities, buildings and departments?

What is holding back the use of particular technologies like combined heat and power?

How strong is the level of energy savings in the tertiary sector?

In countries like the UK which I visited recently on a personal basis, they have a number of schemes that are designed to reduce energy consumption and ensure that customers are using energy more efficiently.

Their experience has been that the end consumer has traditionally found it difficult to accept energy efficiency solutions but this is changing very rapidly given the increased cost of energy. Even though they all remained shocked at the alarming spike in utility rates in Malta.

One interesting development in the UK is that since the end consumer is unlikely to be able to put the time and effort into energy efficiency, the providers of energy efficiency schemes "outsourced" this to the energy retailers in the competitive market with energy efficiency thus becoming a source of competitive advantage.

Given our totally different scenario, can one envisage a situation where Enemalta, the MRA, the MRRA and Malta Enterprise will for once manage to work in tandem and in sync together on such an important and pivotal issue?

Brincat.leo@gmail.com

www.leobrincat.com

Mr Brincat is shadow minister for the environment, sustainable development and climate change.