Firing the power station through natural gas does not necessarily mean lower electricity tariffs for consumers, according to a new national energy policy launched yesterday.
Although political parties, particularly Labour, are presenting the possibility of building a gas pipeline and using this finite natural resource as a possible solution to Malta’s high energy generation costs, Resources Minister George Pullicino warned that gas did not necessarily mean lower energy costs.
“Although the Government agrees we should investigate the possibility of going for gas, prices for this natural resource on the international market are sometimes very close to the price of oil and are also volatile. This means it may still not be feasible to use gas,” he said.
The Government is in the final stages of commissioning a €1 million study on the costs and benefits of building an undersea gas pipeline to Sicily for use by the power station. The study is financed through EU funds.
The study will explore whether it makes sense for Malta to switch its power generation to gas from oil.
It is estimated such a pipeline would cost some €300 million to build while the power station would have to be modified to use gas. The pipeline would also take years to be commissioned and built, meaning the investment would only pay off in the long term.
The new policy is based on a series of objectives aimed at diversifying the energy mix used in Malta while accelerating a shift in the energy culture.
Diversification, security of supply, efficiency and affordability are the main thrusts of the policy.
Malta is currently the EU member state most dependent on fossil fuels, mainly oil, and the Government wants to change this. According to EU policy, Malta is obliged to produce 10 per cent of all its energy through clean resources by 2020, mainly through wind and solar sources.
Giving an update on current projects, Mr Pullicino said the one to build a 95MW offshore wind farm on a low-lying seabed known as Sikka l-Badja was still in the pipeline. Two other small onshore wind farms at Ħal Far and Wied Rini in Baħrija were also planned.
However, Mr Pullicino admitted these projects were taking a long time, particularly at planning stage, due to the complicated process of obtaining a planning permit.
On Sikka l-Bajda, by far the largest renewable energy project proposed by Malta, more detailed studies were needed particularly as the first environment impact assessment identified a problem related to the yelkouan shearwater, a protected bird that breeds in the area. The same problem is affecting the Ħal Far site, which is also close to the airport approach.
The new policy also places a lot of importance on the use of sun and light to produce energy.
Following the introduction of various schemes to encourage the use of solar panels in homes, the Government is awaiting the go-ahead from Brussels to launch the biggest PV subsidy scheme, which according to Mr Pullicino should benefit some 7,000 families.
To encourage lower consumption, a new audit scheme is being introduced whereby experts will visit private homes and offer suggestions on how families can make better use of energy.