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Electricity rates set to rise significantly throughout Europe

Massive investment needed for alternative energy infrastructure

Electricity bills, already deemed “unaffordable” by 92 per cent of the Maltese, are set to continue rising significantly over the next 20 years, according to an internal EU document leaked by the Financial Times.

Malta has to invest heavily in cleaner energy... Somebody will have to pay for the new infrastructure

The document does not make any direct reference to Malta or any specific member state but analyses how the EU’s policy to meet climate change targets will affect energy rates.

According to the impact assessment, the European Commission’s internal studies for an EU energy policy covering the period up to 2050 indicate that energy prices in all member states will have to increase significantly for at least 20 years for both consumers and businesses if the EU is serious about achieving its climate goals.

The EU is aiming to cut emissions by 80 per cent by 2050, which will involve the use of a 20 per cent proportion of renewable energy sources in its energy mix by 2020.

According to the report, the most likely industrial hypothesis will be an explosion in wind energy in the EU, producing almost 50 per cent of its electricity by 2050 as opposed to the five per cent produced today.

Nonetheless, the report states that, whatever happens, electricity rates will sharply increase for a period of at least 20 years before slowing down towards 2050.

The reasons are twofold: member states will have to cover the cost of the massive investment required for a new energy infrastructure, such as building wind farms, and also cover the investment needed for maintaining existing installations that are being wound down before the expansion in green energies.

Of the five scenarios studied, the most costly is the massive use of wind and solar energy, which could lead to a doubling in electricity prices for individual households by 2050.

The least expensive option, which is not possible for Malta, is an increase in use of nuclear energy and technology for carbon capture and storage. This option will still mean an increase of no more than 43 per cent in prices over the same period, the report notes.

Officially, the Commission is saying it does not comment on leaked documents. However, sources said that the fact that Malta was still completely dependent on conventional electricity generation meant the island would have to invest much more than member states that were already quite advanced in producing cleaner energy. “Malta has to invest heavily in cleaner energy and this will come at a cost. Somebody will have to pay for the new infrastructure,” the sources said.

Malta has lower targets to reach until the end of this decade because it is departing from a much lower position. While, according to targets, the EU has to start producing 20 per cent of all its energy needs through renewable sources by 2020, Malta’s target has been set to 10 per cent.

Still, Malta has to invest hundreds of millions of euros over the next years to build at least three wind farms, two onshore and one offshore, and to link its electricity system to the European grid through a €200 million submarine cable that should be in place by 2013.

Prime Minister Lawrence Gonzi recently announced that Malta planned to install a natural gas link to Europe to fire its power station with a much cleaner natural resource. Such a pipeline is likely to cost hundreds of millions of euros.

At the moment, Malta’s two power stations, in Marsa and Delimara, use heavy fuel oil to generate electricity. Once the link with Sicily is in place, the Marsa plant will be shut down and decommissioned.

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S. BONAVIA

Oct 25th 2011, 10:59

Thats why in the next EU election I do not vote,I do not want to be a member of this farce anymore and I want to show that I do not have any confidence in them at all,its better that the Govt.first increases our wages as that of our european friends before considering to make the bills higher.

Paul Smith

Oct 24th 2011, 21:05

Yeah Joe

Oil is infinite as well, lets keep burning it, it wont ever run out.

Sometime this decade, your going to have a very very serious problem. When you cant get your hands on enough oil for RO, you will realize how utterly silly your remarks are.

Dont say i didnt warn you



Jo Meli

Oct 24th 2011, 16:05

Mr Jimmy Magro is an ALARMIST, as ususal.

Such senario is unattenable in view of December 21st, 2012, after which, those who survive will be "Back to Stone Age" !

Alex Ellul

Oct 24th 2011, 21:29

Jimmy Magro, you have seen the light. It is all a scam perpetrated by the green/left politicians (also called watermelons) abetted by the energy giants such as ENRON, E.ON etc.
It goes like this:
Invent an enemy=CO2
Invent an army of windmills and glorified glass panels
Subsidise there prduction AND their purchase (Subsidies at start and end point of process)
Subsidies keep cost very high and PROFITS too
Convince the people that you are saving the planet
Tax the people to finance the subsidies
Cost of energy goes through the roof
Industry migrates to China
Economy implodes.
Enron runs with the money robbed from people
Politicians retire
Raise price of energy as much as possible

Jimmy Magro

Oct 24th 2011, 16:18

I agree with what you are saying.
But the issue is not only to lower consumption but why is the EU planning to increase energy costs by 400 and 500%.

This is nothing but madness.

Jonathan Scerri

Oct 24th 2011, 13:34

Dear Mr. Ripard,
I'm no more than 36 and in my lifetime I have already witness two disasters (Chernobyl and Fukushima). And if you argue that the first was in the hands of incompetent Russians, the second was manned by Japanese tech gurus.
The truth is that nuclear is only a transitional source of energy until we really learn to tap on renewables in a large scale and until we learn how to use energy efficiently.

W Cassar

Oct 24th 2011, 14:40

Gustav why dont you say something positive for once!

Paul Mallia

Oct 24th 2011, 14:04

Who is using it to build solar energy plants and cut off from the older types of generation of electricity. Mela sew, ahna ntuhom biex jahdmu u ahna ma naghmlu u niehdu xejn minn dak li tajnihom.

Paul Smith

Oct 24th 2011, 21:55

I think thats asking for trouble

have you seen the recent earthquakes in Blackpool UK all down to fracking

Mark Galea

Oct 24th 2011, 10:27

Mela kull ma trid taghmel, mr Gordon Farrugia, hu li tistenna sal-elezzjoni li jmiss, u tivvota, u l-maggoranza tirbah. Dak l-importanti, li ssir elezzjoni libera, mhux bhal tal-81. U jitla min jafdah l-elettorat (ghalhekk l-MLP baqa l-art dawn l-ahhar 25 sena)

Gordon Farrugia

Oct 24th 2011, 12:16

ma nafx kemm hi elezzjoni libera din li twieghed genna fl-art qabel l-elezzjoni u mbaghad ezatt wara li tirbah kull weghda tisparixxi mar-rih. Dan QERQ u NGANN sfaccat Sur Galea bhal kampanja ta kontra d-divorzju ax l-argumenti li bdew iggibu kienu vera sfaccati.

James McIntosh

Oct 24th 2011, 11:21

to win the next election at any cost is also the goal of PN, never forget that

Adrian Schembri

Oct 24th 2011, 08:54

Lol, int bis-serjeta'???

C Cassar

Oct 24th 2011, 08:59

@ David Farrugia: Your attitude is what has got countries such as Malta into the current situation of expensive energy. No long term planning of investment. You need to pay for theis shortsight over the next 20-30 years and there will be no escape for you. congratulations.

W Cassar

Oct 24th 2011, 10:02

We have been doing that for quite some time already!

David Farrugia

Oct 24th 2011, 12:48

I just posted a question from a different perspective. Taking for example countries like Denmark and FInland, they made huge leaps in the energy sector, however I am sure that their citizen's energy cost is not as high as in Malta, when comparing per capita income.

It is great to have the standards of these northern countries, however to obtain such standards, whoever who is going to pay for this? Does the common Joe Borg afford it?

C Cassar

Oct 24th 2011, 20:10

Energy will always cost more in a small country like Malta. There are fixed costs to the infrsastucure. On the other hand, hardly any energy is needed over the winter in Malta compared to Northern Europe wher ethe costs are huge. Talking about air-con during the summer is a falacy, it's rarely needed to avoid severe health problems unlike the freezing winter conditions in other parts of Europe.

A Spiteri

Oct 24th 2011, 08:55

Issa jorhsu sur galea ftit xhur ohra u jorhsu sew ta ftit gimghat qabel l elezzjoni, il coach jajd lil pm kif ghandu jroxx il bzar f'ghajnejn in nies bi biex jerga jirbah l elezzjoni u jien perswaz li inti wiehed min dawk li ha jahrquk hafna ghajnek

Carmel Xuereb

Oct 24th 2011, 09:50

U anke l-PN ilu jweghdna l-genna fl-art ghal dawn l-ahhar 20 sena, ara anke lili kien bghatli ittra ffirmata minn Dr. Fenech Adami li l-insib mhux se jispicca anzi kien se jizdied u balec hekk ghamel ghax halliena b'xiber imnieher. Hallina Sur Galea ghax lilna z-zghar u l-klassi tan-nofs fgajtuna. hemm bzon bidla fil-Gvern u l-iktar li nistghu nibqghu kif ahna, jekk ma nsibux xi hofra kbira bhal ma sabu fil-Grecja li ma nafux biha u jaf biha biss dak tal-par idejn sodi.

Aristide Galea

Oct 24th 2011, 10:01

Sur Mark Galea , Jiena wiehed min dawk li mhux qed ninkwieta , billi il-problema taghna ser tkun solvuta fil-budget li gej ghax aktarx li il-gvern tmissu il-kuxjenza u jaghtina zieda ta' €500 fil-gimgha sabiex inkunu nistghu inhallsu il-kontijiet .

Mark Galea

Oct 24th 2011, 10:32

Xi tridni nghidilkom sur Spiteri u sur Xuereb. L-elettorat kollox, u dawn l-ahhar 25 sena kellu hafna cansijiet jafda l-MLP, u ma tantx kien hemm rizultati kbar ghall-MLP.

L-IMPORTANTI li qed nghixu f'pajjiz liberu u DEMOKRATIKU, fejn tista tmur tivvota minghajr biza ta swat (per ezempju hu is-snin 80) jew vendikazzjonijiet. Mill-bqija jiddeciedi l-elettorat. Ovvjament jien naccetta dejjem ir-rizultat ta elezzjoni generali. Intom l-istess? Ghax qed ninnota li qiskom qatt ma accettajtu li l-PN imexxi l-pajjiz.

Paul Portelli

Oct 24th 2011, 08:46

agree Mr Saliba.by this we are building our own grave.

Mr R.E. Saliba

Oct 24th 2011, 09:01

@ Paul Portelli

Indeed Mr. Portelli, yet I emphasise that this may be a grave for the majority but a bed of roses for a select few. I would dearly like to know who will benefit from such an obvious waste of money.

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