The €70 million smart meter project constitutes the major investment the government allocated to environmental measures in the Budget on the grounds that consumers could control energy use and reduce their carbon footprint.
Incentives introduced for the uptake of alternative energy only consist of a scheme offering grants on photovoltaic (PV) systems with an allocation of €3.8 million, and on solar water heaters with an allocation of €4.2 million over three years.
The PV systems scheme will be open to everyone and eligible applicants will receive a grant of up to 50 per cent of their capital expenditure up to a maximum of €3,000.
The grants on solar water heater systems will be 40 per cent of the expenditure, up to a maximum of €560. The scheme will be open to all Gozo residents "to continue strengthening the eco-Gozo concept".
In Malta, the solar water heaters scheme will be limited to families entitled to the energy benefit, those who receive supplementary assistance, families entitled to fixed children's allowance, low-income families and first-time buyers buying a property whose value does not exceed €120,000.
The government anticipates that around 2,500 families a year will benefit from the solar water heater systems, and 400 families will benefit from PV systems.
Last year, 4,500 families were expected to benefit from the solar water heater scheme but only 2,206 applications were actually received, while the scheme for PV systems was oversubscribed.
The government is preparing a call for tenders for those interested in installing and operating PV systems on public buildings. An investment of €500,000 will be made on an educational campaign about clean energy. The promise that the government would calculate its own carbon footprint (a measure of its contribution to greenhouse gas emissions) was again reiterated.
The government referred to EU targets set for Malta to achieve 10 per cent of its energy from alternative sources by 2020, and said plans will be based on initiatives already declared. In the last Budget, the government allocated €130 million for a wind farm at Is-Sikka l-Bajda - the estimate shot to over €300 million in the following months. Plans also unfolded for an additional two land-based wind farms - it is hoped these combined projects will deliver 4.8 per cent of energy consumption.
This year, €300,000 was allocated for environmental impact studies to begin on wind energy projects.
The government also plans to acquire five per cent of energy requirements from waste-to-energy plants and the extraction of gases from landfills. In this Budget, €16 million was allocated to waste management.
An investment of €30 million on sewage treatment was also announced with the promise that "as from next year all sewage will be treated before being dumped into the sea".
The government also promised to revise the mechanism for eco-contribution. This week, three drafts of legal notices will be published for consultation with the aim of giving refunds for the recycling of packaging material carried out between 2005 and 2008. An exemption will also be granted for the six months from July to December 2009.
In terms of better air quality, the government announced zero registration tax for hybrid cars.
The establishment of a working group to analyse the state of the environmental industry and draw up a strategy for its development was announced for future consideration.