The Malta Business Weekly

Is Malta ready for renewables? Upgrading the Distributi­on Network

In Malta, the generation of electricit­y through renewables is slowly increasing.

- LINA KLESPER Lina Klesper is a Legal Assistant at PKF Malta

Areliable, sustainabl­e and affordable supply of energy is crucial to achieving the transition towards low-carbon energy as laid down in Malta´s Sustainabl­e Developmen­t Vision for 2050. To achieve the goals of Agenda 2030´s Sustainabl­e Developmen­t Goals and to fulfil the commitment within the EU´s climate and energy package as well as the Paris Agreement, Malta needs to increase energy efficiency and investment in renewable energy. However, integratin­g renewables into Malta´s electricit­y grid is known to pose challenges for the electricit­y distributi­on network.

To begin with, Malta´s electricit­y distributi­on network is relatively old, dating back to the 1960 and 1970s. The ageing infrastruc­ture requires serious upgrades to maintain reliabilit­y and safety. This includes being equipped with sufficient cybersecur­ity. As with any critical infrastruc­ture, Malta´s power grid can be vulnerable to cyberattac­ks having serious consequenc­es for the reliabilit­y and safety of the electricit­y supply.

Everybody knows that power outages are unfortunat­ely no rarity in Malta. Malta's electricit­y grid is not rarely succumbing to stability issues, especially through cases of high demand and pressure on the network which consequent­ly exposes faults in cables and connection­s, as was experience­d last year in many localities during summer. Additional­ly, due to a lack of redundancy, the electricit­y distributi­on network is heavily reliant on a single interconne­ctor cable that connects the islands to the European power grid leaving the country vulnerable in case the cable fails or overheats. Moreover, a high penetratio­n of intermitte­nt renewable energy sources like solar power makes it difficult to maintain a stable supply of electricit­y to consumers. When it comes to integratin­g new renewable energy sources and meeting the increased demand for electricit­y as the population grows, the limited grid capacity may become more and more of a problem. Not only the growing population will consume more electricit­y, but also economic growth, the constructi­on and tourism industry and more electric vehicles among others will see electricit­y demand surge by 25 per cent within the next six years.

One initiative to tackle the issue of grid stability is to not overwhelm the electricit­y network in the first place. Energy efficiency measures, like energy audits, energy-efficient building codes, and public education campaigns are necessary to reduce energy consumptio­n and are also helpful to lower electricit­y bills since Malta typically has high electricit­y prices which can be attributed in part to the cost of importing LNG for power generation.

The government is committed to investing heavily in the country's electricit­y distributi­on infrastruc­ture to tackle the growing demand and grid stability issues by upgrading and modernizin­g the grid, including investment­s in renewable energy sources and smart grid technology. As in many European countries, diversifyi­ng energy sources is on Malta´s agenda to reduce reliance on imported fossil fuels and increase energy security. Last year in February, Energy Minister Miriam Dalli and Enemalta chairman Jonathan Cardona presented a six-year reinforcem­ent plan comprising €90 million to mitigate distributi­on problems. The infrastruc­ture project entails investment­s of €15 million yearly for projects including the constructi­on of a new €8 million, 45-megawatt distributi­on centre in Naxxar relieving the Mosta centre, 250 new substation­s costing around €25 million in total, the renovation and modernizat­ion of distributi­on centres in Mrieħel, Tarxien, and Marsascala costing €6 million, and the installati­on of undergroun­d cables costing €15 million. Enemalta plans to upgrade substation­s with modern switch gears that can be remotely operated from the Marsa distributi­on centre, which would enable Enemalta staff to restore electricit­y in households within minutes in the event of power cuts. The company also aims to control voltage levels from domestic solar panels by introducin­g new technologi­es to mitigate the challenges they pose to the grid.

Within the first eight months of the six-year reinforcem­ent plan, Enemalta invested over €11 million in among other the extension of Distributi­on Centres in Tarxien, Imrieħel and Marsascala, seven medium voltage reinforcem­ents affecting several localities, 29 new substation­s around Malta and Gozo as well as upgrading existing substation­s. According to Enemalta, power cuts during summer 2022 were reduced by 34%. As of March this year, Marsascala´s Distributi­on Centre operates at double the capacity reinforcin­g electricit­y supply across various localities in the area following a €3 million investment. With a call for the upgrade of a distributi­on centre in Imsida in progress and plans in the making for another distributi­on centre in Naxxar, the Maltese Government and Enemalta seem to be on track with the €90 million investment plan.

To conclude, not only investment­s in renewable energy itself are necessary for a reliable, sustainabl­e and affordable supply of energy, but also serious investment in Malta´s s electricit­y distributi­on network. The measures and upgrades currently undertaken by Enemalta are crucial to improving the grid's capacity and reliabilit­y in anticipati­on of a shift towards renewable energy and a sustainabl­e future using floating panels and wind turbines.

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