A bill proposing a raft of amendments aimed at setting up an exclusive economic zone will serve to turn Malta into a hub of renewable energy production, Prime Minister Robert Abela said on Wednesday. 

Addressing the House on the bill's second reading, Abela said it will serve to widen Malta’s economic territory without developing any more land, adding that while he believes that land reclamation is “very much needed” for the country, it is not what is being proposed. 

The bill is proposing various amendments to both the Civil and Criminal Codes as well as other ordinances in order to set up an exclusive economic zone some 12 nautical miles offshore from the country. 

The installation of offshore renewable facilities will strengthen the country’s position as an innovation leader in new sectors and calls for tenders with a focus on renewable energy projects will be the next step in the process. 

“The scope is to take advantage of the country’s potential and marry these projects with strategic partnerships to establish the Mediterranean as a hub for clean energy in which Malta emerges as a leader,” Abela said, citing an agreement Malta recently signed with Libya to establish a renewable energy interconnector. 

“Through the installation of renewable energy sources, primarily wind turbines and solar panels, we will be working towards producing clean energy for our country to meet our renewable goals and, why not, move it along to the rest of Europe.” 

Abela said that the government is cognisant of resistance to the development of renewable energy projects on land due to the environmental impact these projects are projected to have. 

“The reality is that space in this country is what it is and we have to recognise that the installation of things like wind turbines will create environmental devastation,” he said. 

“But we don’t want to be in a position where we have to choose between having renewable energy sources and safeguarding the existing land mass.” 

Site will be located 12 to 25 nautical miles offshore

Speaking on Wednesday, Finance Minister Clyde Caruana said Malta has a continental shelf of around 71,000 square kilometres, while the proposed exclusive economic zone would comprise the area between 12 and 25 nautical miles from Malta’s shores, or around 7,500 square kilometres. 

The proposed amendments, he said, did not mean that it was earmarking the entire stretch of 7,500 square kilometres for development, but that when a project of merit is confirmed it has the legal certainty of operating within this area, knowing that is backed by strong legislation. 

“Investors must know that there is a rule of law safeguarding their interests and making sure that their investments are secure, that is what we are discussing today,” he said.

He said that dedicating around 10% of the space available to the exclusive economic zone is a “good start” in attracting various projects, with interest expressed from the fields of renewables, aquaculture and oil and gas industries. 

An area will have its coordinates declared within the exclusive zone once a project is confirmed, Caruana said, and projects will be obliged to follow international law and established navigational routes. 

“We have a lot of space, there is no need to fight people over the use of this space,” he said. 

Looking to the future, Caruana also said the zone could be used to introduce projects in emerging technologies such as carbon storage and hydrogen production. 

These projects, Caruana said, will also serve to address recommendations put forward by the European Commission urging Malta to move further towards renewable energy sources. 

The Commission, Caruana said, is pushing for Malta to curb its subsidies on energy prices, but the government is of the opinion that the issue can be solved by creating renewable energy sources. 

“The government intends to solve this issue by attracting the investment needed that will allow us to reduce costs on our energy spend, rather than raise the price of energy,” he said.

Correction: An earlier version of this article said metres instead of kilometres.