The government explains its energy plans, raps Labour’s changing versions
The Delimara power station extension. Photo: Jason Borg
The government yesterday explained its plans to cut emissions from the Marsa power station, following the European Commission’s formal notice about Malta’s infringement of an EU directive on emissions limitation.
The Commission says three of the four Marsa energy-generating plants exceeded the 20,000 operation hours allowed.
In its statement, the government reiterated its commitment to ensure a stable supply of electricity that meets Malta’s energy demands while respecting environmental obligations.
To do so it worked on two major projects: the extension of the Delimara power station and an interconnector to link Malta to the European electricity network. Both projects were underway but had experienced delays in procurement due to technically non-compliant bids.
The government said the Delimara power station would be in full service by June while the interconnector will be completed and in operation by October 2013.
It also noted that Enemalta took mitigating measures to reduce emissions from the Marsa power station through the use of higher quality fuel and by making modifications to the boiler combustion system of the plants.
“This demonstrates that the government has taken serious action and is continuing to invest in Malta’s energy supply security while taking measures to mitigate the negative effects of keeping the Marsa power station in activity pending the completion of major investment projects.”
Meanwhile, the Finance Ministry yesterday issued a statement claiming that Labour leader Joseph Muscat had no idea how to reduce water and electricity tariffs as promised, so he had changed his version four times.
The minister referred to Dr Muscat’s address at Ta’ Giorni on Tuesday, when he said Labour would bring down tariffs through wise actions, using the latest technology and converting the power station to gas.
The ministry said that until a few months ago Dr Muscat promised he would reduce the tariffs by reducing €12 million from the Return on Capital Employed formula, but Standard and Poor’s said this was impossible.
After insisting the power station should be converted to diesel, Dr Muscat now seemed to accept the government’s version that this would have meant tariffs would increase by €30 million.
Dr Muscat therefore then said he held meetings with private operators and was willing to consider buying electricity from them. However, no details of these talks had been given.
The Labour leader was now saying he would opt for gas.
Meanwhile, the government had always said the new power station could also be operated on gas once such infrastructure became available.
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pat muscat
Mar 8th 2012, 17:05
The Government is using heavy toxic fuel oil for Delimara, and yet criticizes the PL because it is opting for gas! Is it a case again of Government wasting millions because firstly, it did not plan well, and secondly because there were certain considerations-like the 4 million euros in commissions- which were ( surprise surprise) too important to let go?
Edward Mallia
Mar 8th 2012, 12:50
Part 2. After all Minister Fenech has let the real wildcat out the bag. After a sanctinmonious pronouncement that "now is not the time to raise tariffs" when by his continuous harping on the rising price of crude it clearly is, he made two announcements. One was the €25 million gift to Enemalta; the other revealed his intention of a massive re-financing of the Enemalta debt. The latter is an open admission that Enemalta does not have a hope in hell of paying off its debt from energy tariff earnings.The former shows that Minister Fenech has been overtaken by events: rises in the price of crude, although the path between this price and the price of the unit at my house meter, has never been clearly spelt out; and the sudden possibility of an early election. In the absence of both of these, he would have had a tidy sum saved by using HFO at DPSE instead of inefficient Marsa to devote to a CUT in tariffs around election time. Use of gasoil would also have left him with room for a cut, but a smaller one.
Edward Mallia
Mar 8th 2012, 12:34
If Minister Micallef is correct in saying that "Dr. Muscat now seemed to accept the government's version that [conversion of Delimara Extension to diesel] would have meant tariffs would increase by €30million", then the level of government action and political opposition in this country would have reached the level of farce. Last week Minister Fenech said, correctly, that DPSE coming on stream will result in efficiency gains over Marsa, a gain of a factor 2 in fact. In practise, this would mean that, USING THE SAME FUEL (HFO), one would need to use half the amount of fuel in DPSE to produce the electricity produced by that part of Marsa about to be shut down. The cost would then be 1/2 that of Marsa; but as the DPSE energy represents 1/3 to 1/2 of the TOTAL ANNUAL PRODUCTION, the average cost of a unit should COME DOWN BY ABOUT 30%. If gasoil is used at DPSE instead of HFO at Marsa, the higher cost of gasoil will STILL NOT CANCEL OUT the DPSE efficiency advantage. But the average cost of a unit will STILL COME DOWN by 12-15%. So Minister Fenech's €30 million increase in tariffs, THROUGH USE OF DIESEL AT DPSE, IS PLAIN NONSENSE. If Minister Fenech does not know this (to put a charitable Lenten point on it) while Dr. Muscat thinks that it is correct, I suggest they should both apply for early retirement.
Please choose the reason of your report below: