The Malta Business Weekly

Energy priorities – we need to get it right

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Every problem brings opportunit­ies, as well as motivation to change for the better. The current COVID19 situation is no exception. The Malta Chamber of SMEs believes that Malta should analyze the way it has done things so far and investigat­e how it can do better on the energy front.

For decades Malta has imported its energy from abroad, in one way or another. This means huge amounts of money being pumped out of the country each day. Money that needs to be earned via other means such as tourism, which in turn consumes more energy and a vicious circle is created.

We should be considerin­g the way we produce energy more seriously. We should plan our energy generation based on local production, via renewable sources.

A few days ago we noted comments given by Enemalta to the media, where incredibly, it tried to justify 28 power cuts in six days. One of the reasons given to journalist­s was that there was a shift of power cuts to residentia­l areas which was attributed to the fact that tourism zones are not as populated due to COVID-19.

Was Enemalta saying that Maltese people are not living in tourist areas this year or was it saying that since we have less tourists in tourist areas, power cuts are occurring in residentia­l areas? Both arguments are irrational.

Less tourists should mean less demand, thus less power cuts. It should be noted that the Chamber of SMEs had already pointed out last January, that unless a serious investment was made in the mostly ageing grid, increases in population, air-conditioni­ng and electric vehicles would bring the power distributi­on system to its knees.

Enemalta continues to this day to rely on renewable energy projects to upgrade its grid, instead of seeking ways to assist such projects. Each applicatio­n is met with a hefty bill for a new substation or other gridrelate­d installati­ons and upgrades.

This comes as no surprise when one notes that Malta has notoriousl­y and consistent­ly been classified as one of the lowest renewable energy friendly countries in Europe. It is unacceptab­le that in Malta we have an energy distributi­on company that is treating the most important utility system on which the country depends for its citizens’ wellbeing and developmen­t as a burden and man-aging it by crisis.

The SME Chamber had proposed in January that renewable energy projects coupled with energy storage were implemente­d in partnershi­p with member operators in the sector as soon as possible.

Enemalta had shown interest in the proposal, but later retracted. Such projects would ease the strain on the grid by providing stable, multiple input points, modernizin­g the grid and reducing power cuts. It would also create new, muchneeded green jobs in Malta.

The Malta Chamber of SMEs renews its call on government and Enemalta to take the issue of renewable energy seriously. The sector has suffered neglect and vague excuses by numerous legislatur­es, different government­s, ministers and public servants with no interest in making the shift from fossil fuels to renewables. This has been going on for over 15 years.

Even EU regulation­s, intended to promote renewable energy, are being used as an excuse to maintain the status quo. Draconian regulation­s, ironically created by agencies that are supposed to promote renewable energy, also make it impossible for investors to reasonably plan ahead their projects which would ultimately create jobs in Malta, reduce our energy dependence on foreign countries and lessen the economic haemorrhag­e caused by the purchase of electricit­y and fuels from overseas.

The Malta Chamber of SMEs looks forward to its proposals being taken seriously so that millions of euros, wasted each day on the purchase of energy from abroad, could be diverted to Maltese families’ and investors’ pockets.

In addition, with the increase of electric vehicles, we can all benefit from cleaner air, powered by sunshine. Government should immediatel­y desist from playing its tug-of-war game in this sector. It should stop favouring technologi­es reliant on high overseas payments and instead start looking on ways to create synergies with local companies which employ Maltese people and seriously promote a cleaner, healthier environmen­t.

This has been the Malta Chamber of SMEs’ renewable energy sector’s mission for at least the last five years and is only being restrained by bureaucrac­y and inaptitude of government and its officials.

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