The debate on various aspects of the country’s national energy policy will continue for some time as new information on energy consumption and costs are revealed.
Recently, Eurostat reminded us that Malta has the highest energy dependence rate in the European Union. We practically have to import all the energy products that we consume. Between 2008 and 2011, we also registered the highest increase in energy consumption in the entire EU.
The implications of these statistics are important because our dependence on imported energy could blunt our ambitions for a more vibrant economy in the coming decades.
It is a sad reality that Malta is still a long way from achieving the Europe 2020 target of procuring at least 10 per cent of its energy needs from renewable sources of energy. While some progress was achieved in the last few years when fiscal incentives were granted to those who invested in photovoltaic and solar panel equipment, this is hardly enough to reduce our dependence on imported fuels in any significant way.
One hopes that the next Administration will follow up on this initial partial success by incentivising more people to invest in alternative energy sources. We need more robust schemes that will encourage the proliferation of alternative energy sources in more homes and businesses.
The news that in the last few years Malta “registered the highest increase in energy consumption” while most other EU countries registered a decrease in consumption is not necessarily positive.
It is a fact that Malta was spared the worst effects of the economic downturn in the EU partly because the profile of our economy is quite different from that of other countries, which have a much bigger industrial base. So we did not see the decline in most economic activities that support our economy and, in fact, continued to achieve growth in certain sectors like financial services. This partly explains why energy consumption continued to increase.
What is not clear is whether this country’s energy consumption is as effective as it should be.
Today, most experts agree that the Marsa and Delimara power stations are still producing high cost electrical energy that, many argue, is far too high when compared with that of most other EU countries. More energy consumption is not really so positive if it does not equate to more efficient use of energy and more competitiveness.
The Bloomberg Gas (petrol) Price ranking report puts the price of petrol at the pump in Malta in the 19th most expensive rank in a league of 60 countries.
Those who use our roads on a daily basis will undoubtedly conclude that the rather high cost of petrol does not seem to be deterring the use of private transport. Dealing with traffic jams is now a feature of everyday life and not just during rush hours.
The Maltese people’s attachment to cars can have different explanations. One of the main reasons must be the fact that the public transport system is still not giving the kind of service we were promised when a new operator was appointed. Improvements have undoubtedly been made but, clearly, much more needs to be done to reduce the use of private transport and the consequent consumption of fuel.
The rationalising of our energy policy will feature highly on the agenda of the next Administration. A sustainable, affordable and safe source of energy is indispensable if we are to achieve our economic ambitions.