Miriam Dalli

Transitioning towards a Sustainable Future for Malta: An Interview with Dr Miriam Dalli

Following a period of research and analysis, Malta’s Prime Minister Robert Abela and Energy Minister Miriam Dalli announced a public call to businesses interested in developing the island’s first offshore wind farm. This represents one of several important cornerstones to build up the future green generation mix of Malta.

In this interview, we had the pleasure to sit down with Dr Miriam Dalli, Malta’s Minister for Environment, Energy and Public Cleanliness. As a leader in sustainability efforts, she shared her insights on how the country is navigating the challenges to decarbonise and achieve its ambitious energy transition goals.

Miriam Dalli

1. What is the overall vision of Malta for the future generation mix of Malta in its energy transformation?

Diversification is key to Malta’s sound future energy mix. By balancing onshore renewable sources, namely solar photovoltaics, with grid interconnections, utility-scale and household battery energy storage systems, and emerging floating technologies, we aim to achieve a secure, diversified, and decarbonised energy supply for our islands. This complements our overarching energy vision, built on five pillars: Consumer-centricity, Sustainability, Energy Affordability, Energy Security, and Diversification of sources.

2. What are the main challenges in decarbonising Malta’s economy, and what initiatives are being pursued to overcome them?

The challenges Malta faces in decarbonising its economy stem from its spatial limitations, dependence on imported fuels, Malta’s geographical features, including the fact that it’s a small island with deep bathymetry, together with seasonal energy demand fluctuations. Being an island at the periphery of the European network exacerbate certain challenges. Addressing these requires innovative approaches, including maximising available space for solar PV, exploring offshore floating wind and solar technologies, investing in energy storage and increasing interconnectivity to mitigate Malta’s insularity. Initiatives such as support schemes for domestic renewable energy and battery storage installations, as well as long-term Contracts for Difference (CFDs) for commercial installations, are part of Malta's approach to overcome these challenges. Additionally, our focus on electrifying transport and facilitating the required charging infrastructure, implementing a new interconnector with Italy, and investing in utility scale energy storage reflects a commitment to long-term resilience.

Furthermore, Enemalta, Malta’s Distribution System Operator, is undertaking significant investments in the distribution system. This includes grid reinforcement through additional cable laying, upgrading and constructing new distribution centres, as well as upgrading and building new substations. These efforts are complemented by the modernisation of the electricity grid with advanced software, aimed at enhancing reliability, addressing congestion, and improving service for consumers. Together, these initiatives align with and support the extensive investments the country is making in renewables and energy storage.

3. What is the current status of renewable penetration in Malta, and what are the objectives for 2030?

Malta has made considerable strides in increasing renewable energy penetration, primarily through solar PV installations, the use of biofuels and heat pump technology. However, we are working hard to increase renewables on the island because I strongly believe that there is potential for improvements. As of the latest data, renewable energy contributed more than 13% of Malta’s energy mix, exceeding our 11.5% target for 2030 set in 2019. We want to be way more ambitious, and we are now aiming to double our share of renewables to 25%, aligning with EU targets, through further renewable energy deployment.

Offshore wind Malta

4. Given the spatial limitations for utility-scale renewable generation, what role can offshore renewable sources play in Malta’s decarbonisation?

Given the limited land area Malta offers, offshore wind – particularly floating wind farms – could become a substantial part of our renewable generation mix. Fixed-bottom wind turbines are not an option due to the depth of Malta’s surrounding waters, but floating offshore wind can harness the region’s wind potential without encroaching on land or marine resources, providing scalable, utility-level energy to support Malta’s decarbonisation objectives and reducing the visual impacts. We acknowledge that the technology for floating offshore wind is more costly than onshore wind, however given our realities, we need to tap into all possible opportunities. Complementing our wind ambitions, we are also exploring offshore floating solar technologies. Although this is an emerging technology, we have recently concluded a Preliminary Market Consultation to better understand its potential, helping us policymakers take the necessary steps to support its deployment at the opportune moment.

5. How is Malta progressing with transport electrification and EV infrastructure? Is the charging network keeping pace with demand?

Malta has made significant progress in promoting electric vehicles (EVs), with incentives for EV purchases, a growing network of charging stations, and a target to phase out new internal combustion vehicles imports. The charging infrastructure is expanding, with a plan to add another 1,200 charging points, enhancing accessibility. Ensuring that the charging network keeps pace with demand is a priority, requiring continued collaboration with the private sector to meet the needs of both residents and visitors alike.

6. What is the current status of energy storage in Malta, and are there any plans to accelerate the deployment of battery technology?

Battery Energy Storage Systems (BESS) are a key focus in Malta’s energy strategy, aimed at addressing the intermittency of renewable sources. Although still in the early stages of commercial deployment, the government of Malta has been heavily supporting their uptake through incentives such as cash grants for households with rooftop PV installations, covering up to 80% of the expenses. This has led to a strong uptake, with more than 14 MWh of residential BESS already in place and an additional 10 MWh in the pipeline. For a country of Malta’s size, these figures are significant. Additionally, the government has started implementing two utility-scale BESS projects, which will add around 84 MWh of storage capacity. This approach aims to enhance grid flexibility and resilience as renewable penetration increases, while simultaneously fostering local expertise to support the long-term growth of this sector.

Miriam Dalli

7. Is Malta considering further interconnections with neighbouring countries, and how could this affect its role as an energy importer or exporter?

Malta is currently actively exploring additional interconnections, both with mainland Europe and North African countries, to enhance energy security and support grid stability as renewables expand. A second interconnector with Italy is currently being implemented by Interconnect Malta, which is a government-owned company. This interconnector is critical to enable Malta’s offshore renewable ambition while diversifying energy sources. It also positions Malta as a potential energy bridge within the Mediterranean, enabling both imports and exports depending on seasonal demand and renewable output. I believe that enhanced interconnections are crucial for a flexible, decarbonised energy network. However, interconnection projects should be supported by domestic renewable energy and storage projects to maintain energy autonomy.

8. Hydrogen is a prominent topic across the EU. What role does the Ministry foresee for hydrogen in Malta’s future energy mix?

Malta’s immediate focus remains on expanding renewables and electrifying its energy consumption. However, hydrogen is being considered as a potential component of the future energy mix, particularly for hard-to-abate sectors. We are currently monitoring hydrogen developments and green hydrogen generation projects in neighbouring countries, while conducting studies to determine the most cost-effective and suitable decarbonisation pathways for non-electrifiable industrial processes and services. Malta currently is not connected to the European gas network, and we are proposing a gas-pipeline with mainland Europe. However, to ensure that we do not end up with stranded assets, we updated our pipeline design to cater for the transmission of hydrogen. In 2023, the pipeline’s design and financial engineering studies were updated and finalised to accommodate a hydrogen-ready pipeline. This aligned the project with the EU Green Deal objectives and the transition to a carbon neutral economy, which may enable the future import of renewable gases like green hydrogen as the market develops.

9. Malta has just launched a competitive process, one of the very first in the Mediterranean, for a 300 MW offshore floating wind Farm. How significant is this opportunity for the country? How has AFRY’s collaboration supported the design of a competitive offshore renewable generation process?

I know that my country has a number of challenges to overcome to increase its share of renewables. However, I am a firm believer that when challenges present themselves, we need to look out for opportunities. This is one of those situations. The 300 MW offshore floating wind farm represents a landmark opportunity for Malta to establish itself as a leader in commercial-scale floating renewables in the Mediterranean. While floating wind technology is relatively new, recent advancements and pilot projects globally have been very encouraging. This project could be transformative, significantly advancing Malta’s renewable energy targets while fostering local and foreign expertise in offshore wind technologies. AFRY’s collaboration has been invaluable, bringing technical insight and international experience that has helped design a competitive and transparent tendering process, that we hope will attract experienced players to contribute to Malta’s renewable future.

Offshore wind turbine

AFRY

AFRY has been supporting the Government in the process of drafting the PQQ from the technical and commercial points of view and will be walking through the whole process until the conclusion. Our scope included site selection, technology selection, electrical and environmental studies, cost estimates, financial feasibility and modelling, support for state aid application and drafting tender documentation.

All information has been uploaded to the electronic tenders site of the Government below.

AFRY helps governments in selecting offshore wind development areas, creating roadmaps for offshore wind development and designing offshore wind competitive processes.

Contact Bülent Mutlu, Imke Maassen van den Brink, Rafael Menendez Cuiñas and Bayram Mercan below for more info.

Bülent Mutlu - Director | Head of Power and Heat Generation, AFRY Management Consulting

Bülent Mutlu

Director | Head of Power and Heat Generation, AFRY Management Consulting

Bülent Mutlu is a management consulting expert providing growth oriented and best fitting future strategic solutions for our international customers in transitioning & decarbonizing global energy-, bioeconomy-, and infrastructure markets.

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Imke Maassen van den Brink - Director Netherlands Renewables, Wind & Solar North and West Europe

Imke Maassen van den Brink

Director Netherlands Renewables, Wind & Solar North and West Europe

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Rafael Menendez - Senior Principal, AFRY Management Consulting

Rafael Menendez

Senior Principal, AFRY Management Consulting

Rafael Menendez has extended experience in the Renewable Energy sector, previously holding consulting positions as a Senior Strategy Manager, and Head of Innovation Office, as well as in the industry as Head of M&A, Alliances and Business Development.

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Bayram Mercan - Manager, Strategy & Finance, AFRY

Bayram Mercan

Manager, Strategy & Finance, AFRY

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