Creating a market for sustainable energy growth Inġ Creating a market for sustainable energy growth Inġ. Charles Buttiġieġ December 2018

Background

ABOUT THE ENERGY AND WATER AGENCY Established in Q1 of 2014, through Legal Notice 50 of 2014; Agency advises the Ministry for Energy and Water Management upon issues related to energy and water policy; Energy Unit: Wide remit. Key focus areas include energy efficiency and renewable energy.

INSTITUTIONAL SETUP The Ministry for Energy and Water Management The Energy and Water Agency The Regulator for Energy and Water Resources Agency is responsible to: provide technical input to the drafting of EU and local Regulations in the sectors of Energy and Water Implement these Directives and ensuing reporting and preparation of National Plans such as the NREAP, the NEEAP and the 2030 National Energy and Climate Plan. Regulator issues Authorisations to operate in the energy market and has the legal power to enforce regulations and impose fines and take legal action as necessary.

THE AGENCY Energy – Conventional and Renewable; Water; Projects Water; Gas Interconnection; Energy and Water Awareness (Household Visits).

NEW LEGISLATIVE FRAMEWORK FOR 2030

EU Clean energy package Includes amongst others: Energy Efficiency Directive Renewable Energy Directive Governance Regulation The three legislative texts are scheduled to be published in the Official Journal of the EU on 21 December 2018 and will enter into force on 24 December 2018.

Eu ENERGY UNION objectives for 2030 40% Reduction in GHG Emissions 32% Renewable Energy Share 32.5% Energy Efficiency

Regulation on the Governance of the Energy Union Energy and climate objectives & policies to be set out in National Energy and Climate Plan (NECP). To cover the 5 dimensions of the Energy Union: Decarbonisation (GHG emissions & removals and Renewable Energy) Energy Efficiency Internal Energy Market Security of Supply R&I and Competitiveness

Member States to set their own national objectives for: Member State 2030 Targets Member States to set their own national objectives for: Renewable energy Energy efficiency

LEGISLATIVE FRAMEWORK FOR 2020 – Renewable energy

Renewable energy Malta’s renewable energy targets for 2020 10% of gross final energy consumption by 2020 Separate RES target in transport: 10% by 2020 Malta’s Renewable Energy Action Plan (2017)

Malta’s renewable energy progress 2015-2016 minimum interim trajectory met

Renewable energy by technology PVs SOLAR WATER HEATERS HEAT PUMPS BIOMASS IMPORTS WASTE TO ENERGY BIOFUELS

Challenges in Renewable energy deployment Malta’s specificities: Small market Highly densely populated Geo-physical limitations Geographical position Malta is a technology taker; development locally depends on the evolution of the relevant technologies worldwide and their respective affordability.

PV POTENTIAL Present PV capacity: >100MWp Target additional PV capacity: ~90MWp Government has given priority to rooftop installations Potential on brown field sites to contribute towards RES target

Current support for pv deployment (1) Any form of support towards generators of RES-E must follow State Aid rules PV installations in the built environment must follow planning guidelines Current support for installations ≤1MWp: Capital grants for residential installations (max. €2300/system) + feed-in tariff of 16c5/kWh for 6 years Feed-in tariff guaranteed for 20 years for PV Systems with capacity between 1kWp and 40kWp, (or greater)

Current support for pv deployment (2) Support for installations >1MWp: 20-year premium (over and above proxy for market price) for PV systems with capacity of 1MWp or larger Support shall be provided through a competitive process whereby investors would need to bid for support Categories that qualify for scheme include quarries, industrial areas, disused landfills, car parks Scheme is in line with Solar Farms Policy published by Planning Authority which regulates large scale PV deployment

LEGISLATIVE FRAMEWORK FOR 2020 – ENERGY EFFICIENCY

Eu ENERGY EFFICIENCY TARGET ARTICLE 7 TARGET; CUMULATIVE END USE ENERGY SAVINGS FROM 2015 UNTIL 2020 – 774 GWh

ENERGY EFFICIENCY TARGET

NEEAP Various Actions Government Public Procurement Notice Energy Audits Non-SMEs SMEs – new scheme Household – Energy Awareness Potential for Cogeneration and District Heating and Cooling DSO improvement in electricity distribution E-Billing Energy Performance Contracting Public Consultation Information to Final Customers

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