Government announces €26 million investment in renewable energy

The Government has unveiled a new investment opportunity for those wishing to get into the budding renewable energy sector, with €26 million dedicated to ensuring sustainable and attractive Feed In Tariffs (FIT) for the next 20 years.

In what is the largest allocation assigned for large scale renewables to date, the Ministry for Energy, Enterprise and Sustainable Development, together with the Regulator for Energy and Water Services (REWS) launched the latest investment opportunity with a capacity allocation of 16MW.

The calls aim to attract investment for the installation of renewable energy projects in large areas such as quarries, officially disused landfills, industrial land, roof tops, car parks, land under a government concession, and other mass scale investment.

The invitation to bid, which will be open for three months until 5th October, will invite interested parties to submit offers for mass scale renewable energy system installations for projects exceeding 1MW.

In a press conference addressed by Minister for Energy Miriam Dalli, it was explained that the allocation of 16MW translates into an investment of €26 million over 20 years.

“Following the launch of the first set of calls in May, with today’s launch the allocation in large scale renewable energy projects has increased to 47MW. The capacity of the projects ranges from 40KW to over 1MW. This means a total investment of €76 million over 20 years”, Minister Dalli said.

“We are presenting the most ambitious and largest allocation which has been assigned for large scale renewables.”

Malta’s EU target for renewable energy sources is presently set at 11.5%.

“We are not simply ambitious about achieving this target, but our aim is to exceed it. We want to sustain our shift towards a sustainable economy by providing greener energy, ensuring that the private sector is involved and increasing the mix in our energy contribution”, Minister Dalli said.

The launch was held in the presence of the Regulator for Energy and Water Services (REWS), the Energy and Water Agency (EWA), Enemalta, ARMS Ltd, the Chamber of Commerce, the Chamber of SMEs, and the Malta Developers Association, and follows months of consultations with all stakeholders.

On average, the maximum financial support FIT will be set at 12c7 Euro/kWh. Other bands will be provided according to the type of installation.

Following detailed technical analysis, this capped financial support has proven to be fair to the investors, while ensuring a practical and feasible return on investment.

Publication of technical details and the Invitation to Bid (ITB) will be launched on the REWS website and the Government Gazette.