Power plants' efficiency 'below 50 per cent'

The efficiency of the Enemalta power plants is less than 50 per cent, the corporation has told The Times.

Replying to questions, Enemalta said the efficiency of the plants varied from about 25 per cent to 45 per cent.

The questions were submitted after the corporation recently issued a call for expressions of interest for a "new electricity generating plant or electrical power supply". The question on what efficiency it was looking for was ignored.

The corporation said the call was only a request for information and may not necessarily be followed by a call for tenders. It wanted to find out what international organisations involved in the energy business could offer to meet the electricity demand in Malta.

It intends to enhance sources of electricity supplies to meet future demand as a short term solution to Enemalta's Generation Plan.

While Enemalta's nominal generation capacity is 571MW, the maximum demand registered so far was 411MW.

According to Enemalta's "request for information document", the plant has to have at least two power units with a combined electrical output of 50 to 60 Mwe, 50Hz. The units are to operate at base load conditions in parallel with the existing generating plant.

The proposing entity is invited to opt to use energy sources other than heavy fuel oil or gas oil, which were the readily available fuels in Malta, should the proposed scheme result in a better economic operation.

Asked if cleaner technology would be given preference, Enemalta said it was too early to answer this question but it did not discourage the introduction of cleaner technology.

Should the project be implemented, Enemalta would consider various financing options. These could include the traditional approach such as supplier finance and leasing arrangements.

But it would also consider a direct involvement of the private sector through a public private partnership approach, such as joint ventures, concessions, service agreements or structures around a "design, build, operate" finance solution.

Asked if the price of electricity would have to be raised further to cover the investment, Enemalta said it was too early to answer that question.