Marsa and Delimara power stations - November 26, 2002

Everyone knows that our two power stations are a major source of air pollution. The other major source is traffic.

Awareness about the link between air pollution and certain diseases, such as asthma, is also now rapidly increasing. So there is a direct link between the state of our environment and our health. The cleaner the environment, the higher our standard of living. And vice versa.

The next thing is to do something about it.

EU laws attack a number of sources of air pollution by setting standards that must be respected. A specific law deals with large combustion plants, including power stations.

Both our power stations fall short of EU standards on air quality in more ways than one.

If we are to join the EU, this problem must be addressed.

It is worth noting that a Commission study found that if Malta applied EU environmental standards on air quality it would save some E10 million every year from lower costs of public health care services and the management of the environment.

During negotiations, this issue was how Malta could adapt to these higher standards in a timeframe that was reasonably rapid but at the same time, realistic.

So far as the Delimara power station is concerned, it was agreed that by membership, Delimara would be in line with EU standards, including with respect to NOx limits and SO2 limits. However, it will not be in line with respect to fine dust emissions.

On this point, agreement was reached on a transitional period that will come to an end in December 2005.

In other words, by the end of 2005 the Delimara power station will be in line with EU standards across the board, including on dust emissions.

With respect to the Marsa power station, no specific arrangement was sought in negotiations. This means that the Marsa plant should be in line with EU standards by membership. The only other option would be for it to be phased out.

In fact, it is now known that action will be taken to address the Marsa plant and to bring it in line. Compliance will be achieved through the use of low-sulphur oil. But the capacity of the Marsa power station will also be gradually reduced through the phasing out of the oldest - and most polluting - boilers.

On the other hand, the capacity at Delimara will be correspondingly increased with the building of a new 110MV plant.

So provided that it can be brought in line with EU standards, the Marsa power station need not be closed down. But if not, this would be the only way to go.

In the meantime, a feasibility study is under way on a project for laying a submarine gas pipeline between Malta and Sicily. This would relieve part of the problem by reducing our dependence on the oil that we need to generate electricity and instead allow us to use natural gas, which is environmentally cleaner. Incidentally, gas fuel should also make the generation of electricity cheaper.

But a discussion on our power stations cannot be complete without the crucial issue of reliability of supply. In other words, how reliable is our supply of electricity?

Our electricity generating system suffers from being a small isolated system. It is not connected in any way to the mainland European electricity grid. As a result, whenever problems crop up at one or both power stations, we suffer the immediate inconvenience in our households and often, serious problems are created for industry.

Another inconvenience that comes with power cuts is a corresponding cut in water supply in a number of locations that depend on the (electricity-generated) reverse osmosis water plants.

So our national strategy for electricity generation should look at the wider picture, including ways of ensuring that our society and our economy are well served with a supply that is fully reliable. Among other things, the possibility exists to connect our electricity system to the European grid, although this would require a substantial investment in an electricity interconnector between Malta and Sicily.

Furthermore, the EU has a specific law on electricity which seeks to open this market to competition while ensuring that everyone can have access to electricity at an affordable price. This law does not impose full competition to electricity systems which are known as "small isolated systems".

Malta claimed during negotiations that it falls within the classification of a small isolated systems because of our geographic size and isolation, because of our comparatively low level of consumption and because of the fact that our electricity sector is not connected to other systems. The annual consumption of electricity in Malta is less than 2500GWh.

Malta also argued that it was not feasible for us to split the transmission and distribution functions. It therefore applied for derogations from certain aspects of the directive, particularly the full application of liberalisation of the distribution network.

On its part, the EU informed Malta that whereas it is most likely that Malta's request on this point would be accepted, this derogation can only be requested - and obtained - after membership.

Other than this, Malta intends to implement the EU directive by 2003. This will allow for new generating capacity. Companies other than Enemalta will be able to execute small installations within defined parameters, although public service obligations may be imposed to safeguard the interests of consumers.