What has kept the PN from changing to LNG in 2005?
The Interconnector price review must be taken into a much broader context and period
As expected, the published National Audit Office report on Electrogas contracts has again raised a lot of interest and arguments on the Malta Gas and Power project.
A particular clause, however, has struck my attention – claiming that way back in 2005, a specific company had put forward proposals for a CCGT plant using LNG. It also states that this proposal had been discarded in 2007 since Enemalta opted for another plant operating on Heavy Fuel Oil as energy fuel.
This is no coincidence: It confirms what the Labour Party has been saying about the Nationalist Party about not wanting such a change to happen.
One would ask why? What has kept the PN from opting to a cleaner, more affordable, and more reliable energy source? Considering this development, lest we forget when the PN administration had voted in favour of higher electricity tariffs way back in 2013 and described this vote as ‘bil-qalb’.
In his criticism, Adrian Delia had also mentioned that
‘around €200 million is being robbed off Maltese taxpayers from the Electrogas project.’ This cannot be true because of the simple reason that Enemalta had only paid €160 million for electricity generated during the last year and two months. The opposition leader has clearly got his calculations wrong, or else, is trying to misguide the public.
The opposition is also making reference to the Interconnector prices, which is incorrect to say the least.
Firstly, the NAO’s review is taken during a particular period when Electrogas was still, contractually bound to operate in open cycle mode, meaning in a much less efficient manner.
Secondly, the Interconnector price review must be taken into a much broader context and period.
In fact, interconnector prices increased by 60% this August when compared to 2017, meaning that in some instances prices reached 48% more than what is delivered by Delimara plants. Thirdly, as also mentioned in the National Audit Office report, the Interconnector by itself be considered as a reliable source due to the technical issues that may arise and have already risen during the recent years.
We are now seeing the first long-term positive results being affected by the Malta Gas and Power project. Enemalta plc is no longer registering losses, but rather a €40 million surplus annually. Malta, as a country is recording a drastic decrease in emissions emitted from energy sources.
One must not miss the bigger picture in all of this – Malta’s energy mix. Having a number of energy sources in addition to the interconnector means that Enemalta has a more vibrant selection of energy sources, and can make strategic decisions made on price affordability and reliability.
Today, Malta gets its energy from Electrogas, D3 (ex-BWSC, now converted to gas), the Interconnector, and renewables.
People and businesses are now benefitting from reduced tariffs and environmental benefits, and it all contributes on Malta’s strong economic growth.