Better power tariffs thanks to interconnector - Fenech
Picture: DOI
Malta can look forward to better electricity rates following its interconnection with the Italian energy grid, Finance Minister Tonio Fenech told delegates at the opening of the Eurelectric annual conference this morning.
He also reiterated that Malta is considering using gas for the power station.
"The Maltese Government is seriously evaluating the installation of a gas pipeline to the European gas network in order to switch to the cleanest of fuels for our electricity generation. Such a project clearly will depend on a decision that the European Union will be taking over the coming months, namely whether to include such a project – and the level co-financing – in its post 2013 financing period," the minister said.
Mr Fenech touched on supply issues which have pushed up oil prices, notably concerns surrounding Iraq, Iran and Nigeria.
He said that despite its own challenges, related mostly to physical isolation, Malta had not shied away from also setting ambitious targets. Malta plans to reach 10% of all the energy consumption from a renewable energy mix by the year 2020. In recent years Government undertook several national initiatives to sensitise members of the public to invest in renewable sources of energy. Thousands of families benefited from grants for the purchase of solar water heaters and photovoltaic systems for domestic use. Industry has also been granted aid to invest in solar energy generation.
"Keeping this environment and energy production synergy in mind we are also embarking on the interconnector project between Malta and Sicily, which will facilitate additional efficient energy returns and at the same time diminish the impact of emissions. As an isolated island this makes our economy and energy stability completely dependent on the continuous supply of oil. The interconnector will address this issue, and by the end of 2013, Malta will finally be part of the European grid. Today, Malta's energy infrastructure is mainly dependant on gas turbines and fuel oil fired boilers and Malta's generation costs are both higher and more volatile when compared to the international market due to the lack of economies of scale and the restricted availability of fuels. We therefore look forward to better rates following our interconnection with the Italian energy grid."
The interconnector, he added, also plays an integral part in Malta meeting the EU's low carbon agenda.
"The interconnector will make way to the possibility of investing in large scale renewable energy sources, such as offshore wind farm and the possibility of producing energy from waste, which are currently being studied."
Mr Fenech also spoke on the power station project, saying different technologies were brought together to satisfy the requisites of Malta and most importantly abide to all policies posed by the European Union.
"The result is a highly efficient, flexible plant, which is fully complaint to European Union and international emissions and environmental standards"
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Thomas C. Cassar
Jun 4th 2012, 23:44
Ara mela jistghu jorhsu l-kontijiet tad-dawl u l-ilma?? Dan l-istess bniedem li kien ghajjar lil Joseph Muscat li qed iqarraq meta wieghed dan?? Jaqaw waslet l-elezzjoni??
Anthony Mizzi
Jun 4th 2012, 23:36
Tridna nemmnuk wara is-saga tal-BWSC li kella tahdem bil -heavy Fuel Oil?
Nemmnuk jew riesqa l'elezzjoni?
Tivvuttaw ISSA fil-Parlament biex jonqsu is-surcharges fuq il-kontijiet tad-dawl u l-ilma, TIVVUTAW ISSA BIL-QALB?
Salvinu Buttigieg
Jun 4th 2012, 23:09
Its a bit too late for that most of us have already received our tariff bills, and we are paying through the nose., compensation would be a better gesture for now.
Patrick Zammit
Jun 4th 2012, 21:08
Wasn't the government telling us that gas is more costly than HFO when faced with criticism about the Delimara extension? Why is gas now cheaper?
And is this the same T Fenech who assured us that the government would make a profit when he gave taxpayers' money to Greece because he was forced to do so by the EU?
You can fool all the cwiec Maltin some of the time, and some of the cwiec Maltin all the time, but you can not fool all the cwiec Maltin all of the time.
brian spiteri
Jun 4th 2012, 20:33
@ j tabone
Qed tghawweg il- fatti u thawwad, l- idea tas sargas giet min John Dalli ex ministru nazzjonalist u mhux mill PL, il- PL ilu snin twal ihambaq fuq powerstation tahdem bil gass izda intom tal PN li minghalikhom thifmu f kollox tmejjiltu b' din il- proposta, u issa wara li xtrajtu powerstation tahdem bl- HFO qed tghidu li fil ftur ser tinvestu f'powerstation tahdem bil gass, bongu!! Intom li skond kliemek tafu tippjanaw fit tul, l- anqas il-powerstation tal marsa ghadkhom ma ghalaqtu, suppost skond EFA din kellha tinghalaq hekk kif ta Dellimara tibda topera, ie iktar minn ghoxrin sena ilu!! Intom li tippretendu li thifmu f kollox u tafu tippjanaww hafna ghadkhom l- anqas biss bdejtu thallsu il- power station ta dellimara li waslet biex tigi decommissioned !! Dawk pjanijiet!! U nistaqsik, forsi tghatini spjegazzjoni int la tifhem daqshekk, tista tghidilna kif l- enemalta spiccat b'dawn id-djun kollha meta hi ghandha monopolju assolut fil qasam ta l- energija u il- fuels? Fejn kienu qed imorru il- flus tal kontijiet dawn l- ahhar kwazi 25 sena ta gvern nazzjonalista??
A Camilleri
Jun 4th 2012, 20:00
i have only one wish and that is to start receiving my water and electricity bill regularly and not after one year like they did with my last one.
Lino Maniscalco
Jun 4th 2012, 19:56
With the interconnector the government will buy cheaper electricity but we will still pay high tariffs. When the price of oil was going up we used to know because the media and the government was spreading the news every minute. Now that the price of oil has gone down to 80 dollars no one mentioned it and at the end of May The price of fuel did not go down. WHY WHY WHY ???????
CHARLES VELLA
Jun 4th 2012, 19:15
What is the government waiting for to reduce our fuel.?????
Joseph Borg
Jun 4th 2012, 18:38
u btw jekk trid tkun taf EZATT kif jahdem is sargas tista tmur facilment hawn http://www.sargas.no/ u tkun taf x hini id diferenza bejn il medjuevu u il hruq tal faham ma kif VERAMENT tahdem is sargas.
Joe Tabone
Jun 4th 2012, 19:07
Joe, That's why Government has also commissioned a study on the Sargas unit, to check its viablility, hekk titlob is serjeta.
BTW how did Dear Joseph come about this technology................?!
Charles Massa
Jun 4th 2012, 18:30
@J.Debono
Nahseb li int ma toqodx Malta. Huwa ex ministru Nazzjonalista (Ministru Dalli )li kien ippropona lis Sargas. Dr. Muscat sema l prposti taghhom. U tas sargas ma jahdimx fil faham. Dr. Muscat kien ippropona l power station il gdida tahdem bil gas, u l interconnector xi haga li tal PN issa ikkupjaw. Ta min jigbidlek l attenzjoni li prezz taz zejt ilu niezel ghal dan l ahhar xahar. Minn USS125 per barrel il lum qieghed USS97. Jekk irid il Ministru mil lum jista jrahhas il kontijiet ta dawl u ilma. Barra minn hekk il prezz ta dawl u ilma jista jorhos jekk titnehha l inefficjenza li hemm fl Enemalrta. Dan mhux dr. muscat qieghed jghidu, imma Mlata Tourist Association fejn ikkonfermaw dak li ilu jipprietka dr. muscat, li poplu u l industrija qiefghdin ihalsu ghal inefficjenza tal Enemalta. U tal MTA zgur mhux xi partitarji tal PL.
Matthew Xuereb
Jun 4th 2012, 18:29
Why not start by decreasing the price of fuel since the international price of oil is about 30 dollars cheaper than what it was in April.
E Gatt
Jun 4th 2012, 18:54
True, the price has decreased since April, but by around US$15 not US$30.
Unluckily for us the Euro has weakened against the Euro during the same period.
Sometimes the price of fuel does go down, but the general trend is that the global price of oil is increasing due to increased demand from the new economic powers in China and India.
A Micallef
Jun 4th 2012, 19:02
2009 oil was about $151/barrel (if im not mistaken) still more expensive than today's - petrol was at 0.99c
2012 oils is cheaper but its 50% more expensive... can someone explain this logic?
Matthew Xuereb
Jun 4th 2012, 20:07
Re. Mr Micallef
After the price of oil dropped to 1 euro per litre in 2009, the government introduced a tax of 15 cents per litre on unleaded and leaded petrol. This 15 cents increase in fuel price was supposed to used to help alleviate the cost of building the current power station extension of Delimara.
PS: Let's see what happens when it is finished.........
Eve Axiaq
Jun 4th 2012, 18:15
Nixtieq nghid xi haga fuq z zejt. Ghaliex ma kienx hemm caqlieq fil prezzijiet tal fuel dan ix xahar sur ministru? Il prezz taz zejt ilu nizel xahar u nofs. Nispera li x xahar li jmiss jorhos drastikament
Mario Pace
Jun 4th 2012, 18:34
Il-prezz taz-zejt veru nizel imma d-dollaru, li bih jinxtara z-zejt, issahhah meta mqabbel mal-Euro u ghalhekk kollox baqa' l-istess.
brian spiteri
Jun 4th 2012, 20:40
@ mario pace
Il-qabza l-isfel fil prezz tz-azejt mhux vera giet ikkumpensata mit tishieh fid-dollaru Amerikan, affettwat ftit izda mhux daqs kemm qed tghid int, fil fatt l- AirMalta bhalissa qed tixtri il- fuel ghall ajruplani b'rati favorevoli hafna permezz tal hedging agreement, haga li l- enemalta setghet ghamlet ukoll, izda il- mod kif jinxtara iz-zejt mill enemalta ghadu mistur mill poplu malti!!!
zammit o
Jun 4th 2012, 18:13
a general election is coming up .. and the impossible is now possible.
Charles Massa
Jun 4th 2012, 17:58
Mela sur Ministru, kellu ragun Dr Muscat li hemm metodi fejn il kontijiet ta dawl u ilma jorhsu. Iz zejt tela f wicc l ilma. Jew din xi wedgha ohra tal PN (BHAL MA KIENET IT TNAQQIS FL INCOME TAX0 u kif tghaddi l elezzjoni ittir mar rih.
J. Debono
Jun 4th 2012, 18:04
Id-differenza hi wahda.
Il-PN ghandhom pjan kif irahhsu dawl u l-ilma, permezz ta' interconnector billi jixtru l-energija, probabilment min Franza, fejn hemm l-irhas dawl minhabba energija nukleari.
Il-PL ppropona Sargas - naharqu l-faham, bhal fi zmien il-Medju Evu!
Joseph Borg
Jun 4th 2012, 18:32
sur Debono....la kif qed tinsinwa inti...allura nistaqsik...ghala il gvern ghamel studju fuq is sargas ftit ghimghat ilu???
http://www.timesofmalta.com/articles/view/20120306/local/kpmg-studying-sargas-proposal.409963
J. Debono
Jun 5th 2012, 07:52
@ Joseph Borg
Il-PN qeghdin jaghmlu studju fuq Sargas, imma pproponew interconnector.
Il-PL pproponew Sargas minghajr ebda hjiel ta hsara fuq sahhitna - l-ewwel imaqdru il-HFO, u jridu l-gass, u mbaghad jipproponu jaharqu l-faham, li huwa l-wisq aghar miz-zejt.
Li kieku l-PN ma ghamlux studju fuq Sargas, wara li l-PL attakahom fuqhom, kienu jizbaljaw.
Imma studju mod, u ghamluha fatta bhal ma ghamel Joseph Muscat hija haga totalment differenti.
Rocco Camilleri
Jun 4th 2012, 17:57
How come now that Tonio Fenech is saying that using gas instead of the heavy fuel oil he embarked on at the Delimara Power station Extension. We were told a number of times that the heavy fuel oil is the best to use and clean. Apart from this are we going to depend on the Sicily Grid where when they want they can switch us off from the Grid and leave us without supply with the consequence of industries fail out of production. It's better to own yourself the Power instead of being given by others. Il Malti jghid ahjar ghasfur f'idejk milli mija fl-ajru jew f'idejn haddiehor. Possibbli li din il-kbarat ma' jarawhiex, jew irridu ingiebu xi kunsulent minnbarra u inhallsuh il-belli liri. Hemm bzonn li nqumu mill-idejat xotti, fejn qed jiswewlna hafna flus zejda li rridu nhallsu ghalihom ahna u ulied uliedna.
E Gatt
Jun 4th 2012, 17:56
The benefits of EU membership, and not listening to Joseph Muscat in 2003, keep rolling in.
The Delimara power station with its oil-powered generators will be much cleaner than the present power stations. Gas might be even cleaner, but the government (like every household) must also consider the costs involved. The option to switch to gas in the future was always there. If the funds are made available to install a gas pipeline, then the gap between the cost of oil and gas will be reduced, and the switch over to gas could be brought forward.
The brave, and unpopular, decision to reduce subsidies is allowing savings to be invested in new technology.
carmel cassar
Jun 4th 2012, 17:55
More dingle dangle of carrots. Is the possibility of early election still on, even though FD is still serving Under LG, as PM and promised a yes vote, or the PM is still not sure what else is hidden inside FD's sleeve.May be that the offer is too great for FD to refuse, and the government is relaxed for the time being.
Charles Micallef
Jun 4th 2012, 17:52
He also reiterated that Malta is considering using gas for the power station..... so why was gas considered at the offset and when the extension was being built instead of heavy fuel oil?
Paul Cassar
Jun 4th 2012, 17:36
AS YOU TELL JOSEPH.............................TONIO SHOW US THE WORKINGS..................as we ARE NOT the gullible sunday morning crowd.
VINCENT WILLIAMS
Jun 4th 2012, 17:22
"Malta can look forward to better electricity rates......"
So Joseph Muscat and the PL were correct!!! What another Uturn by Gonzi Partit Negattiv!!!
"He ( Minister Tonio Fenech ) also reiterated that Malta is considering using gas for the power station.
Again Joseph Muscat and the PL were right!!!! Another grand political Uturn by Gonzi Partit Negattiv after all the words, articles, speeches by every PN apologists attacking and contradictiong Joseph Muscat and the PL!!!!
"The Maltese Government is seriously evaluating the installation of a gas pipeline to the European gas network in order to switch to the cleanest of fuels for our electricity generation."
If as we were told time and time again by Gonzi Partit Negatti that the extension of the Dellimara Power Station working with Heavy Fuel Oil was not going to dirt the environment? Than how it come that all of a sudden the Government is seriously evaluating the installation of a gas pipeline to switch to the cleanest of fuels? Indirectly Gonzi Partit Negattiv is clearly admitting how wrong he was and how right was the Opposition Labour Party all the way!!
OH MAMA MIA WHAT A GRAND UTURN BY GONZI PARTIT NEGATTIV.
Certainly there is no need to continue .....there is no need to make more references regarding uturns by Gonzi Partit Negattiv.
Joe Tabone
Jun 4th 2012, 17:46
Vince, please get your facts right:
1. The Power Station extension was purchased because it could be converted/switched to GAS & LFO
2. The interconnector was planned years ago, before PL had new LEADER = Dear Joseph
3. Dear Joseph proposed SARGAS
FYI - The problem with GAS is that you need sufficient storage facilities (which we don't have) or a pipeline, which is very costly so the PN government is negotiating EU co-financing.
Joseph Borg
Jun 4th 2012, 18:07
so sur tabone...the gas proposed by Tonio does not need storage??? or some form of pipeline??
those are the facts...PL has been telling the govt to switch to gas for the last 3/4 yrs! issa f daqqa wahda ha naqilbu ghal gas ghax sar tajjeb?
Meta konnha ser inhaddmu il powerstation bil heavy fuel oil kont xi wiehed min dawk li gejt hawn tikkumenta favur din id decizjoni????/
HUWA DMIR ta KULL PM li jinnegozzja mal EU habba co-financing ghax dak huwa DRITT taghna. Allura nistaqsik....kif il gvern li tappogja inti ma harigx b din il proposta qabel u minflok qad jattakka lill PL ghax qalulu biex ihaddmu il powerstation bil gas? ghax ma hax din l inizzjattiva mil ewwel u ried immarrad lill uliedna bil HFO??
so tipprovax tiskredita proposta li l PL ghamel xhur ilu ghax qed tobzoq fl arja u jigi f wiccek. Kif ma tammettux li gvern ghamel zball u issa qed jipprova jirrangah?? anzi minflok tigi b wiccek il quddiem tghid li din proposta tal PN....nerga nfakkrek li sa ftit gimghat ilu GonziPN ried imarrad lill uliedna!!
Joe Tabone
Jun 4th 2012, 18:25
@ J Borg,
Joe, simple - Minister Fenech said that the interconnector will provide better electricity rates (that's why PN studied this option) due to economies of scale. But Malta cannot depend on a foreign country for ALL its electricity supply, so the interconnector will compliment the Delimara power station and its recent extension(to replace Marsa PS).
At the same time Government is negotiating with the EU on possible co-financing for a gas pipeline.
Till now all the Dear Joseph offered was SARGAS................where did he get this idea??
VINCENT WILLIAMS
Jun 4th 2012, 21:34
Ref. Joe Tabone.
Sorry you are twisting the facts.
1. Gonzi Partit Negattiv purchased the extension of the Power Station to work with Heavy Fuel Oil which is
the most dirty fuel of any fuels in the market. The Labour Opposition criticized the Heavy Fuel Oil system
and proposed that if the Labour Party will be in power the new extension will be converted into the gas
system. It was after months and months of defending the extension with Heavy Fuel Oilthat Gonzi Partit
Negattiv decided to make a Uturn.
2. If the interconnector was planned years ago than why Gonzi Partit Negattiv purchased the new
extension on Heavy Fuel Oil? So that someone can gain millions of Euros as an agent?
3. Labour made reference to SARGAS as one of many obtions that where far better in many aspects
than the new extension with Heavy Fuel Oil.
Malta has no sufficient storage facilities or a pipeline because of the inefficiancy by Gonzi Partit Negattiv. The priorities of the PN Government are up side down. Gonzi Partit Negattiv instead of spending the people's money on a Gas system. Spent millions and millions of Euros on one of the most anti environment system that exists.
VINCENT WILLIAMS
Jun 4th 2012, 21:55
Ref. Mr Joe Tabone.
Once more you confirmed my argument, or better, that of Joseph Muscat and the PL that the people can obtain electricity by paying less bills. When you wrote that, " Minister Fenech said that the interconnector will provide better electricity rates..." Why did not GonziPN went from the beginning to the interconnector? Because GonziPN's priorities are wrong and that is why the PN Government turned into Gonzi Partit Negattiv!!!!!
Agreed that the interconnector will be a compliment to the new extension at Delimara. But then why did Gonzi Partit Negattiv selected the new extension with the most worst fuel when there were other options?
The saga of the Marsa Power Station shows the inefficiency, the wrong priorities of the PN Governments. About 15 years ago Dr Eddie Fenech Adami as Prime Minister declared that the Marsa Power Station was going to be closed in a couple of years time. Years passed and not only did it not closed. That day by day the people are paying thousand of Euros for the inefficiency of GonziPN. This is just one example why the PN Government turned into Gonzi Partit Negattiv.
Mario Scicluna
Jun 4th 2012, 17:21
Mela issa mhux incentiv ghax-xiri tal-pannelli fotovoltajci skond Gonzi li gholew il-kontijiet tad-dawl u ilma?? Ipokrezija grassa!
Edward Mallia
Jun 4th 2012, 17:19
Minister Fenech is up to his usual claptrap. He has given no source for his claim that the price of Interconnector Power is going to be much cheaper than local generation. Has he signed any contracts? Has he been given any undertakings? With the present state of the European grid, Italian costs of generation will determine what we pay. Later cheaper sources may be available but then transit costs will enter the equation.
As for the Sicily IC helping to "stabilise" our local grid, there remains the fact that we will have an Alternating Current connection with Sicily. This means that any instabilities affecting the frequency (nominally 50Hz) o the Sicilian grid will appear on our grid -- unless the IC trips, in which case power from Sicily will be cut off. General practice is to have Direct Current ICs precisely to avoid this problem. But Minister Fenech and the Enemalta engineers know better, but not so much better that they have ever offered any explanation for the choice of an AC link. All the have done is boast that we will have the longest AC IC in the world. Of course one explanation could be that we are the biggest fools in the world.
Frank Zatarra
Jun 6th 2012, 18:02
Mr. Mallia,
any major frequency or voltage disturbance affecting the Sicilian network would affect also an HVDC interconnector; the advantages of synchronous interconnection are well known and led to the European interconnection. If you twant, please take HVDC advertising at face value, but from the technical and economical point of view things are different. Try reading the feasibility study (see paper B1-104 CIGRE 2010 conference, Paris) .
As regard market prices, they ranged from 40 to 130 €/MWh today.
see http://www.mercatoelettrico.org/It/Esiti/MGP/EsitiMGP.aspx
AC current will be used also for the longer Mallorca-Ibiza link, for the same reasons.
K. Vella
Jun 4th 2012, 17:15
This is startegy planning.....better than saying we will offer low tariffs......
The colour of ties are changing the policies and tactics will never change.....
Grazzi PN tal qasba milli taghtina l-huta.
Mr J Xerri
Jun 4th 2012, 17:04
... so the Finance Minister is confirming that Joseph Muscat's pledge of reducing the electricity tariff is feasible.
victor bonello
Jun 4th 2012, 17:17
exactly.. but only now do they move, after having thrown away millions..how can this present PN ever be trusted.. in my opinion it is the PN that needs a reform if hey want to keep their precious seats.. Tonio Borg should be leading the PN to a new victory..
Joe Tabone
Jun 4th 2012, 17:36
The interconnector had been planned by Dr Gatt (when Enemalta fell under his Ministry), way before Dear Joseph was around.
Dear Joseph came up with another PL gimmick - Sargas - shhhhhh!
Joseph Borg
Jun 4th 2012, 17:58
Which gimmick Mr Tabone???? that our power station extension should work on gas instead of HFO????? cause now it seems it's not a gimmick any more hux???
Neil Dent
Jun 4th 2012, 18:12
The initial tender for works on this same interconnector was issued back in the Summer of 2009, and a a report/study by the MRA soon followed. Needless to say, a great deal of 'spade work' had already been done well before that stage was reached. Regarding the potential switch to gas at the power station, that has always been part of the plan, and was a pre-required option as far back a the planning stages. This was all reported in the local news, and is still available online. You just need to try looking at more than ONE television station from time to time (pun intended).
That is how the current administration has been seriously tackling the problem of Malta's electricity issues, including (but not only) the high cost.
The Labour party in the mean time have offered nothing as an alternative, or any sound policies or methodology as to how to tackle the matter. Empty promises, no beef.
On no wait - there was the pie-in-the-sky Sargas episode, which has now been swept under the carpet where it belongs!
C. Sammut
Jun 4th 2012, 16:16
Is there a possible impact on the health of local residents please? http://hps.org/hpspublications/articles/powerlines.html
Joe Tabone
Jun 4th 2012, 16:27
Good point, but the interconector should feed directly into our power grid.
Perhaps we can get a technical update on this?!
Richard Caruana
Jun 4th 2012, 17:10
Probably much less risky than the pollution generated by our own power station.
C Falzon
Jun 4th 2012, 18:44
Not unless they live under the sea. The cable is laid along the sea bed so even if those health risks do exist they would only affect some fish at the bottom of the sea.
C. Sammut
Jun 4th 2012, 19:25
@C.Falzon read more here.. http://www.timesofmalta.com/articles/view/20120404/local/Cable-link-seen-as-a-plus-for-Malta-s-environment.414079
Please choose the reason of your report below: