€350 million for energy price stability to keep supporting families and businesses
In 2024, the Government is investing €188 million to reinforce the country’s electricity infrastructure and to speed up the energy transition. This allocation is over and above the €350 million investment in continued stability in energy and fuel prices for families and businesses.
Minister for the Environment, Energy and Enterprise Miriam Dalli explained the 2024 Budget projects and incentives in the energy sector during a press conference in the tunnels of the old Marsa Power Station. Through Interconnect Malta and International Energy Service Centre (IESC), the Energy Ministry is planning to utilise this site for an innovative grid-scale battery storage project, to maximise the potential of existing and future renewable energy investments and improve security of supply.
Next year, €5 out of every €100 in Government expenditure will be channelled to energy and fuel price stability for families and businesses. “This stability is one of the reasons why Malta’s economic growth is expected to be 10 times stronger than the EU average next year. It is also one of the Government’s principal social incentives. A family of four whose annual electricity consumption is €695 would have to pay €1,300 without this Government support,” Minister Miriam Dalli said.
The Government is allocating €55 million in national and EU funds to strengthen the country’s energy infrastructure, one of the highest budgets ever allocated to this sector. Most of this investment will go for the reinforcement of the electricity distribution system, with new distribution centres, new substations and new cable connections, to increase the network’s capacity, resilience and flexibility.
Minister Dalli explained that Enemalta is in the process of issuing a call for tenders for a new €14 million distribution centre to improve electricity services in Naxxar, Iklin, Għargħur, Mosta and nearby areas. A similar investment is being planned in Siggiewi, to consolidate the network in this part of Malta, including Zurrieq, Qrendi, Mqabba and other areas. Many other projects are also being planned to reinforce the network across Malta and Gozo.
Enemalta is also investing in temporary additional spare capacity to ensure security of supply until upcoming investments in new green energy sources are commissioned in the coming years. The Battery Energy Storage System (BESS) project in Marsa and Delimara will help to overcome the intermittency challenges of a greater share of renewables.
Beyond this investment in electricity infrastructure, the Energy Ministry is also allocating another €133 million to empower the transition to a decarbonised energy sector. In 2024, Interconnect Malta is issuing the first call for large-scale offshore renewable energy projects in Maltese waters. Preparations for the second Malta-Italy Interconnector project (IC2) are also advancing rapidly. Through the Regulator for Water and Energy Services and other entities, the Government is extending several schemes to incentivise families and enterprises to adopt green energy technologies, such as grants for the installation of PV panels, solar water heaters and heat pumps, and feed-in tariff schemes for investments in larger renewables.
Minister Dalli also explained that the Water Services Corporation is investing €315 million in several projects that will be completed in the next few years, including the upgrading of its reverse osmosis plants to boost their output, 50 kilometres of water distribution pipelines and the extension of the New Water network for the agricultural sector.
“We are investing heavily in the sustainability, innovation and resilience of our country’s utilities. This investment is an integral part of our vision for a just and sustainable future at all levels of our social and economic development,” the Minister concluded.
Representatives of ARMS, Enemalta, the Energy and Water Agency, Enemed, Interconnect Malta, International Energy Service Centre (IESC), Petromal, the Regulator for Water and Energy Services and WasteServ participated in this press conference.
