Malta needs to do more to ensure that Malta climbs from the lowest levels of renewable energy use

Growth in the use of renewable energy has diverse benefits for society, such as mitigating climate change, reducing the emission of air pollutants and improving energy security. The EU’s revised Renewable Energy Directive increased the binding target from 32 per cent to 42.5 per cent share of renewable energy consumption by 2030. So, how likely is Malta to reach these targets?

Eurostat statistics for renewable energy use are not good news for Malta. The lowest proportion of renewables in 2022 was recorded in Ireland (13.1%) and Malta (13.4%). In the same year, the share of renewable energy in the EU reached 23%. Much more must be done to ensure that Malta climbs from the lowest levels of renewable energy use.

Climate Action Authority CEO Abigail Cutajar says the government has agreed on a measure that would make it mandatory for developers to install photovoltaic units (PV) panels on new buildings that have reached the maximum height limitation imposed by the Planning Authority.

This is one small but essential step to encourage more growth in the use of renewable energy. Earlier this year, the government extended the renewable energy schemes and the feed-in tariffs for another year. Hopefully, this scheme will be extended even further in the coming budget.

Renewable energy sources include wind power, solar power (thermal, photovoltaic and concentrated), hydropower, tidal power, geothermal energy, ambient heat captured by heat pumps, biofuels and the renewable part of waste.

Realistically, Malta’s potential for ramping up renewable energy use rests almost exclusively with solar power.

The wind power projects being considered by the government still need to pass the test of technical and financial feasibility. In any case, we are at least a decade away from potentially generating renewable energy from offshore wind farms. In the meantime, more focus must be placed on making solar power a more significant contributor to renewable energy.

It is the right time to enhance the PV schemes and encourage more people to invest in this technology. We must emulate the success of countries like the Netherlands that have invested heavily in PV technology. The gap between the present use of renewable energy and the targets we must reach by 2030 can best be narrowed by making the financial incentives for those who invest in solar power more attractive.

Unfortunately, people who live in apartments can do very little to benefit from subsidies for solar energy schemes. So, more pressure must be placed on businesses to invest more in this renewable energy source. The government may, for instance, link other forms of aid to industry with a condition of more investment in solar energy by businesses. The government must also set an example by installing PV panels on all public buildings, including schools and offices.

The prime minister and the minister of finance have repeatedly insisted that the government will not revise the energy subsidy scheme despite the recommendation of the IMF and the European Commission.

This means the 2030 renewable energy targets will likely be missed. What incentive will households and businesses have to invest in renewable energy when the real cost of energy determined by the commodities markets is hidden from consumers?

As long as the pricing of electricity consumption remains subsidised to the extent it is today, there will be a disincentive for households and businesses to invest in renewable energy systems and more energy-efficient capital equipment.

Short-term pain caused by linking energy pricing to market cost will ultimately ensure long-term gains in efficient energy use.