The consumption of energy dropped by 9% in Malta in the past two years, with up to 87% of the population estimated to have reduced its consumption, Resources Minister George Pullicino said today.

He told a conference organised by the Chamber of Engineers that the people's mentality on the use of electrical power was changing, mostly as a result of the increases in the power tariffs.

The conference, which opened this morning, is discussing the various methods of alternative energy.

Mr Pullicino said government investment in energy systems currently totalled €1.2 billion, including the power station extension in Delimara, the undersea link to the European grid and improvements made to the Marsa power station to reduce harmful emissions.

The government, he said, was also investing in the installation of Smart Meters - a programme which should be completed by the end of 2013, and it was giving subsidies in order to encourage people to install solar water heaters and photovoltaic units in their homes and businesses. In the past five years, 5,000 photovoltaic systems and 13,000 solar water heaters were installed, he said.

Mr Pullicino said wind studies had confirmed that Sikka l-Bajda, off Mellieha, was a suitable site for a wind farm.

He said studies were in hand on converting animal waste into energy.  Two facilities would be set up for the purpose, in the North and the South of Malta. They are expected to generate enough electrical power to meet the needs of 30,000 households every year.

He pointed out that by 2010, Malta is bound by international treaties to generate 10% of its total power consumption from alternative renewable sources.

It was estimated, he said, that energy from the wind, the sun and from waste could each produce between 3% and 4% of alternative energy.