Renewable Energy in Malta - Fondation de Malte Energy in Malta Fondation de Malte TELOS 0601 7 Figure 2 Figure 2, above, based on population density figures for 1995 (the …

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Renewable Energy in Malta

2006

FONDATION DE MALTE MALTA

Renewable Energy in Malta Fondation de Malte TELOS 0601

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The Fondation de Malte was established in 1998 through the inspiration of the late Mercedes Busuttil and registered in Malta by Public Deed. The Fondation de Malte is an international NGO, based in Valletta, dedicated to inter-cultural dialogue, environmental concerns, education and human rights. It acts through the organisation of seminars, courses, conferences, cultural events and publications.


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This document was drawn up in January 2006. It is meant as a contribution by the Fondation de Malte towards the implementation of a renewable energy policy for Malta. The Fondation de Malte is grateful to the assistance given by Mlle. Blanch Reuze (of Tours, France) in the preparation of this booklet.

FONDATION DE MALTE CASA CINTRAJ

54 WEST STREET VALLETTA

MALTA

TEL : +356 2122 1473 FAX : +356 2123 7249

WEBSITE: WWW.FONDATIONDEMALTE.ORG E-MAIL : [email protected]

© COPYRIGHT FONDATION DE MALTE, 2006


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TABLE OF CONTENTS

INTRODUCTION ..................................................................................................... 5 I. THE SETTING ............................................................................................... 6

The Maltese Archipelago...................................................................................... 6 Electric Energy Sector.......................................................................................... 8

II. MALTA’S INTERESTS IN RENEWABLE ENERGY............................... 10

Respecting European Directives......................................................................... 10 Towards a Financially Feasible and Technically Viable Electricity Production 10

i. Controlling its Economy ..................................................................... 10 ii. An Efficient Electricity Production for the Future.............................. 11 iii. The End for Fossil Fuels? ............................................................. 11

Job Creation and Economic Benefits.................................................................. 12 III. OVERVIEW OF MALTA’S POTENTIAL FOR RENEWABLE ENERGY................................................................................................................. 14

Options not Considered ...................................................................................... 14 Tidal Power................................................................................................... 14 Hydrogen....................................................................................................... 14 Geo-thermal Energy...................................................................................... 15 Hydroelectricity............................................................................................. 15

Options to be Considered ................................................................................... 15 Eolian Energy ............................................................................................... 15 Biomass - Biogas........................................................................................... 22 Solar Energy ................................................................................................. 24 Energy-Saving Methods ................................................................................ 26 Biofuel ........................................................................................................... 27

IV. METHODS AND TOOLS FOR THE DEVELOPMENT OF RENEWABLE ENERGY SYSTEMS..................................................................... 31

a. Establishing a National Agency for the Overall Coordination of these Activities ............................................................................................................ 31 b. National Fund for RES Project Development .......................................... 31 c. Advantageous Fiscal Measures to promote RES...................................... 32 d. Encouraging Business Development linked to RES................................. 32 e. Awareness Campaign............................................................................... 32 f. Putting to good use EU Funds.................................................................. 32

V. TOWARDS THE GOAL: TELOS................................................................ 34 POSTSCRIPT.......................................................................................................... 36


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INTRODUCTION

During the last decades, the international economic and environmental context has witnessed deep changes with important modifications to the priorities of society. The preservation of natural resources, the most recent of these concerns, has started to overtake economic development issues. In the energy sector, the need for ecological solutions owes much to the reality of the situation: the end of fossil fuel resources over the next forty years calls for a rapid change in consumer habits. The development of renewable energy falls within this process. Malta, whose production of electricity so far relies entirely on fossil fuels, needs to upgrade radically its energy sector in the near future. Renewable energies, part of the eventual solution, play an important role in the public debate. This report, commissioned by the Fondation de Malte, offers objective observations and opinions, devoid of any political or financial interest. Taking into consideration economic, social, environmental and political factors, local and international, we seek to identify the options that would secure for Malta a viable and efficient energy supply in the years to come. The report is divided between potential objectives, and the advantages and disadvantages of the development of proposed processes. In the final part, some suggestions are put forward to advance on these ideas. In so doing, the Fondation wishes to contribute towards progress in Malta. David R. Busuttil Fondation de Malte


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THE SETTING The Maltese Archipelago

Figure 1 Satellite View of Malta

The Maltese archipelago is situated in the heart of the Mediterranean, 93 km south of Sicily and 320km north of Tripoli. It is made up of three principal islands: Malta, Gozo and Comino. Malta has total area of 312 km2 and a population of circa 400,000 people. The country has a density of more than 1 262 inhabitants per km2, the second highest in the world.


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Figure 2

Figure 2, above, based on population density figures for 1995 (the last census year), denotes that the Maltese population is unequally distributed over the territory, with the bulk of the population occupying only a third of the total land area. Malta’s strengths lie mainly in its geostrategic position at the centre of the Mediterranean and its important workforce. Malta produces only 20% of its alimentary needs and is dependent on the importation of high tech goods (even though, with local value-added, high tech products constitute the bulk of Malta’s visible exports). Moreover, Malta’s water resources are limited. Furthermore, Malta cannot rely on any natural resources for its energy requirements, while the local economy is essentially dependent on international exchanges and tourism. Given its European Union membership, Malta initiated a process of privatisation and market liberalisation. The use of the Euro is envisaged by 1st January 2008.


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Though Malta is a European state, it is not a member of the Schengen Treaty, which it should ratify by 2007. Electric Energy Sector Lacking any natural resources for electric energy production, the country is totally dependent on oil importation. In fact, the generation of electricity is maintained through two power plants, both using gas and steam turbines. The nominal capacity installed is of 576MW: 272 MW for the Marsa power plant and 304 MW for the Delimara power plant. Until 2007 Government exercises monopoly over the energy sector through Enemalta Corporation. Due to its EU commitments, Malta has to liberalise the energy market.

Figure 3

Malta Annual Electricity Demand in MWh Source: National Allocation plan for Malta 2005-2007

The above graph clearly indicates that the demand for energy has increased by 40% over the last ten years. This increase is set to continue and is expected to grow by 4% annually over the next three years. Malta will have to take into account the effects of the growth of its tourism industry and the development of new infrastructures, such as the new Mater Dei hospital and the commercial development on Manoel Island and at Tigne Point. At the same time, the


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generation of electric power in Malta suffers from the rise in oil prices.

Figure 4

Fuel Costs vs. Operating Loss (1999-2005) Source: The effect of fuel input cost on the results of

Enemalta’s Electricity Division, Pricewaterhousecoopers Apart from problems which are beyond Malta’s control, inefficiencies in the distribution of energy only aggravate the situation. 25% of the produced energy is lost in the distribution system. In recent years, due to the construction of a new combined cycle turbine, the rate of return has increased. Much remains to be done, however, to ensure an efficient generating system (see figure 4 above). In terms of alternative energy, Malta only produces 15kWp of photovoltaic energy – one of the lowest rates in Europe, notwithstanding the natural potential Malta possesses. Thermal solar water heaters account for a total production of 10MW.


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I. MALTA’S INTERESTS IN RENEWABLE ENERGY

Respecting European Directives A member of the European Union, Malta has to respect all European legislation and policy-making. Two directives directly concern Malta’s electric energy production:

� The first, 2001/77/EC for the promotion of electric energy through renewable energy, obliges Malta to develop Renewable Energy Systems (RES). At the time of accession, the objective was to have 5% of electric energy generated through RES by 2010.

� This estimate should be assessed after further in-

depth studies on the relative potential of the Islands. In a draft report sent by Malta to the EU in October 2005, the 5% target was not considered attainable by 2010 and only under certain conditions by 2020.

The second directive, 2003/87/EC, refers to the Kyoto Protocol, ratified by Europe. At a European level the objective is to reduce greenhouse-effect gases. In Malta’s case both power plants are affected by the directive. It is important to note that countries not respecting this directive will be fined. Towards a Financially Feasible and Technically Viable Electricity Production

i. Controlling its Economy Malta’s dependence on oil importation limits the expansion of its economy. As a result of oil price increases, the costs of electricity generation rise as well, in turn influencing all other production related to or consuming electricity. Not


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being in a position to influence these costs, Malta’s economy relies on international market prices.

ii. An Efficient Electricity Production for the Future The current system having already its own shortcomings, it is difficult to envisage how, with a constant growth for electricity demand, a quality distribution service can be efficiently put in place.

iii. The End for Fossil Fuels? Throughout the world oil resources are diminishing and the most optimistic estimates state that demand will outrun supply in forty years time. Many research programmes have been set up seeking to develop new technologies that will make use of other resources, such as the sea. The consequences of the drying up of black gold will be disastrous for Malta, and the need to turn to other energy systems is now vital.

Figure 5

Source : G. A. Meehl et al., Science 307, 1769 -1772 (2005)


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During the nineteenth and twentieth centuries the average global temperature rose by 0.2 ± 0.6 °C, mostly due to human activities. According to the scenario given in the above graph (Figure 5) climate change could have potential dramatic effects for the Islands, in that with the rise in the water levels of the Mediterranean, Malta and Cyprus could be submerged within a hundred years. Job Creation and Economic Benefits The initial high capital costs for Renewable Energy Systems have usually constrained their introduction. A recent study by the University of Berkeley, California, shows that the industry of RES creates more jobs than the traditional fossil fuels sectors; i.e. the return on invested capital generates more jobs than any other sector. Daniel Kammen, of that University, states « investment in renewable energies creates ten times as much employment as a comparable investment in fossil energies». On the other hand, the economic success of eolian industry has made its mark. The German eolian industrial sector had a turnover of 4.68 billion euro in 2004. The BWE (German Association for Eolian Energy) estimates that in 2004, the German eolian sector generated 59,300 jobs, with 21,800 of these outside Germany. The European eolian experience has generally had positive impacts on national economies, not only for the technology developers but also for the users, as in the case of Italy, where, according to ANEV (Associazione Nazionale per l’Energia del Vento), in 2004 eolian power generated directly 4,700 jobs, 1,500 in installation and 3,200 in maintenance. Without any data on which to gauge the potential impact of eolian parks on the Maltese economy, one can only suggest that it would follow a development pattern similar to the German and Italian experience. Godwin Cassar, Director-


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General of the Malta Environment and Planning Authority (MEPA), underlined the potential positive returns on the national economy that could be achieved with the adoption of protective measures in energy consumption such as the development of new sectors of activity, like waste separation and recycling1.

1 The Sunday Times, Malta, 31 January 2005.


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II. OVERVIEW OF MALTA’S POTENTIAL FOR RENEWABLE ENERGY

Options not Considered Malta does not dispose of natural resources necessary for the various types of existing RES, such as: Tidal Power Having a minimal tide, the Mediterranean Sea is inadequate for the development of such RES. Hydrogen Hydrogen is considered the best answer to such problems as energy storage. It can be adapted for the production of eolian and solar energy. These energies only generate electricity in the presence of sun and wind. It is therefore necessary to stock energy to have it available at all times. Current accumulators are expensive and have a poor rate of return. Instead of being stored, electrical energy is used for its production through water electrolysis or directly taken from biomass (in the case of entirely renewable energies). It is then hydrogen, and not electricity, which is stocked, and which can, at any moment, be used as fuel for the generation of electric energy. Though there are currently important developments in this area, at this stage it is of no interest for Malta to turn to hydrogen, which depends heavily on an initial energy source for its production. Malta does not dispose of any electrical energy surplus, nor of primary materials, such as water or biomass.


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Geo-thermal Energy No geothermic energy is present on Maltese territory. Hydroelectricity Malta does not have any natural geophysical resources and adequate waters. Options to be Considered Eolian Energy Data publicly available in Malta is limited to what has been published by the Institute for Energy Technology (IET) at the University of Malta. However, the Maltese Government has, in its latest documents and reports, based itself on a feasibility study prepared, in 2005, by Mott Macdonald, an international consultancy group. No official publication has come out to date. All technical data on eolian energy comes from the IET and the published studies of its Colloquium « Renewable Energies in Malta and Beyond Malta » held in September 2005.


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Onshore IET has developed a number of feasibility studies on onshore eolian power. Wind measurements have been recorded for more than ten years, at different heights and at different points of the islands. From this data IET has established a wind map for the Maltese territory. The international reference software WAsP (Wind Atlas Analysis and Application Program) was utilised for this endeavour. The total eolian onshore generation for the Islands was estimated at 45MW, taking into account only sites whose technical, social and environmental locations are considered acceptable, that is an area of only 6km2, optimally producing 5.4% of the total energy generated in 2003. The electricity produced would be of 4 to 5 �cent/kWh. This estimate is based on European experience of eolian parks in maritime zones. The principal regions considered are given in figure 6 below:

Figure 6

The above sites take into account locations having optimal winds and situated on sufficient heights in respect to the sea

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level. These zones have the advantage of being less urbanized than others. A proposal has been developed by local and foreign entities, for the development of an onshore park at Marfa Ridge Offshore Studies estimate the offshore eolian power potential at 29MW, about 3.3% of the total electricity produced in 2003. This potential does not take into account sea zones whose depth is below 20m, beyond which depth technical complications can be quite serious. These zones are marked below.

Figure 7

Sikka I-Bajda

Sikka I-Munxar

Source: Sites for Offshore Wind farm Development around Malta, Their potential and constraints, M Antoine Riolo, Executive Director, Malta Resources Authority


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The total area the suggested offshore zones cover 13.5 km2. Two sites are particularly attractive: Sikka I-Bajda, with an installed capacity of 15MW of 1.8% of the totality of produced energy in 2003 and the site Sikka il-Munxar with an installed capacity of nearly 14MW, about 1.6% of the total energy produced in 2003. An offshore site would require an investment of 30% to 50% more than that for onshore parks. In debating RES in Malta, the question of eolian parks is most probably the most recurrent. Malta benefits from excellent wind conditions. Furthermore, technological development is sufficiently advanced to assure a feasible plan for the Maltese islands.

However, economic, environmental and social factors weigh heavily on eolian development in Malta, limiting planning and development.


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What follows relates to the development of eolian parks and not to the installation of independent eolian systems. In the case of eolian parks economic, environmental and social impacts are systematically mentioned: � First of all, eolian parks usually attract strong reactions from local populations. Opposition is based on visual intrusion, noise pollution, magnetic perturbations...and so on. � The ecologic impact of the construction of an eolian park causes concern. The zones chosen for the construction of an eolian park are uninhabited areas, usually listed as “wild” and under observation by ecological organisations. � Finally, public debate also focuses on the investment and exploitation costs of an eolian park. In most instances eolian parks benefit from government subventions and are exploited by private companies. While it is true that some visual intrusion, noise pollution and magnetic perturbations are caused by parks, yet, European studies have shown that usually the impact is minimal. Opposition to visual intrusion seems excessive, and owes much to a lack of understanding. Furthermore, it is entirely possible to camouflage eolian towers with paint adapted to surrounding environment. Noise pollution is more contained than that usually portrayed in the media. For example, the noise produced by an eolian tower at 500 metres is equivalent to the sound levels of a living room. Finally, technological progress, particularly in the construction of eolian towers, limits the ill-effects of magnetic perturbations. Moreover, in the particular case of offshore eolian towers, these considerations are irrelevant, as the distance removes the above hindrances


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In the same mould, many objections are rooted on the limited development area available in Malta. Potential zones are already exploited for other ventures: tourism, diving, fishing, etc. The adoption of eolian parks relies heavily on the interaction of all these sectors. Ecological preservation of these zones has also been heavily debated, mainly to preserve local flora and fauna. The migratory routes of certain birds have also been evoked. Studies conducted in some European countries (Germany, Netherlands, Denmark, United Kingdom) have shown that eolian parks hardly had any particular impact on ecological balance. It has been calculated that the number of birds that died in one year due to eolian parks was 20, while 1,500 were victims of hunting and 2,000 perished due to electricity transmission cables. Evidently, however marginally, an eolian park affects environmental equilibrium, but so does the generation of electricity through fossil fuels. For Malta, an eolian park is one of the best options for the production of alternative energy on a national scale. It is particularly suited to the geophysical conditions of the islands. An initial onshore project could kick-off the use of such technology in Malta, building up the country’s human resources and expertise for the eventual development of an offshore park. The European eolian experience is solid with a production of 34,366MW. Due to the necessary initial costs, it is difficult to envisage an eolian park in Malta without private investment. However, Government subventions appear to be called for since the return on such investment is not immediately compelling, It appears than, that for the successful installation of an eolian park, incentives are necessary to attract adequate investment. The eolian market in Spain evolved through


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measures that were aimed at increasing investor confidence (particularly through the banks), through a continuous dividend distribution throughout the lifetime of an eolian park, making Spain the top market for eolian parks. Although offshore parks are more expensive than onshore, yet studies show that an offshore site at Sikka I-Bajda would supply a kW at 3.33c, whilst at the moment a kW costs Enemalta’s power stations 3.90c. Concerning doubts expressed on the technical feasibility of an eolian park, some other points are worth mentioning. To date there exists no eolian park which has been built at depths as those considered in Malta. The principle offshore eolian parks to be found in the North Sea are all at depths of about 13.5m. Technologies for greater depths have not yet been developed. However, nothing stops Malta, through the European Union among others, to identify financial and technical partners for the development of such new technologies (or adapting existing ones, such as those found on petroleum wells).


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The growing use of eolian development in Europe suggests the availability of quality services for Malta’s own development.

Table 1

There exists a growing offshore market as seen with current tenders for 400MW for Denmark, 500MW for France and more than 8200MW in the United Kingdom (see table 1 above). Considering the growth of the European eolian industry and of the advances in technological feasibility, one can envisage that, by 2020, 3% of Malta’s electrical production could derive from a combination of offshore and onshore eolian parks. Biomass - Biogas In Malta’s case the exploitation of Biomass resources can only be feasible for the production of Biogas. Biogas is produced from waste storage centres and waste separation stations (urban or industrial) followed by methanisation units of municipal waste, agricultural installations and collective units for co-digestion. Biogas can then be transformed into utilisable energy, principally


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through the use of heat at the source location, and can also be injected in distribution networks of natural gas. A recent study by WasteServ Malta has underlined the potential of this resource for electric generation producing 5% of the total electric energy generated in 2003, through producing biogas (a combination of methane, CH4 and carbon dioxide, CO2) for the fermentation of organic waste. This biogas is then used for electric production. In order to minimise the waste transport costs, these treatment stations can be constructed directly on current waste treatment centres in Malta and Gozo. Generating electric energy from waste is an option currently being considered by the Maltese Government; while no biogas action plan has been established, waste management in Malta requires rapid solutions. Various modifications will need to be made to the waste treatment station at Sant’Antnin, in recycling and composting units, in order to boost the quantity of treated waste. In parallel, WasteServ Malta Ltd has implemented waste separation measures, which are not yet generating electricity. These steps are indispensable for the future development of a biomass electrical station, with 2011 being the earliest conceivable date for such a project. The Government deems this to be an advantage, allowing it to gauge the potential production of biogas, and to be in a position to benefit from the latest technological developments. The European biogas industry has seen an important growth. The United Kingdom is the first in Europe in terms of biogas production with, for 2004, a production estimated at 1,473ktep, the majority of it being used up for electricity production (4TWh).


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The experience and knowledge in methanisation industries has boosted the development of various projects in Germany, France, Spain and Portugal, with waste treatment capacity ranging from 27,000 to 990,000 tonnes per year. For Malta, the production of biogas and the process of thermal waste treatment would allow electricity generation and waste management, as well as making it more economically feasible. As Malta has already embarked on a number of programmes for better waste management, the use of biogas could be seen as a further improvement. Solar Energy

Malta benefits from high levels of solar exposure – one of the highest in Europe. Table 2 shows that Malta can count on over 354 days a year of ‘favourable’ days for the generation of solar energy, and both types of solar energy systems (thermal and photovoltaic) can be applied.

Source: Contribution of solar applications towards achieving a renewable energy target for

Malta, Charles Youssif, 2005

Table 2


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Thermal Energy Using thermal solar energy for hot water geysers allows the owner to reduce his electricity bill by about 25-30%. In Malta, a solar water heater costs approximately Lm450 (1050 Euro) for a capacity of 150 litres. The Maltese Government offers a financial aid of 25% of the initial cost. The greatest constraint to the use of the above type of technology is the limitation in available hot water and time use. The water, heated during the day, should remain warm for later use; in Malta, thanks to the relative mild Mediterranean climate, heat loss at night is limited. It has been estimated that an extensive use of solar heater technology could save more than 106,653MWh per year - 4.8% of the total electricity generated for 2003. Photovoltaic Solar Energy – Photovoltaic panels In Malta, because of the small surface area of the country, only a limited use of photovoltaic systems has been considered feasible. However, today it still has a low return per m2. A photovoltaic solution for Malta would be seen as incurring high costs with small returns. On the other hand the country enjoys the advantages for the use of individual photovoltaic systems, particularly because of flat roofs. The potential electrical generation is estimated at 201,883MWh per year (9.1% of the total electricity generated for 2003). Government incentives exist for such systems: - 25% of the costs of photovoltaic system is subsidised - Reimbursement of metering system installation (Lm20) - Government buys back the electricity at 3cent/kWh Official policy has left the choice to the end user to utilise individual systems, but a strong awareness campaign is


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called for. A deep penetration of solar energy solutions would economise more than 308,536MWh per year, or 13.9% of the total energy production for 2003. However, the current use of such systems is at only 8% of its potential (2005) hinting that it is unattractive to users. Germany, which has adopted such a solution, is buying back electricity produced through solar energy at 57.4c� per Kwh, for installations of 30kWp. Such incentives have made Germany the first market in the world for photovoltaic solutions, surpassing Japan and the United States. Malta would have much to gain by following similar policies. Energy-Saving Methods In the context of renewable energy, energy-saving methods are frequently mentioned. In Malta the steps necessary to increase energy efficiency are huge: - Electricity loss: more than 25% of energy production

is lost between production and distribution.2 - Maltese society is not sufficiently aware of energy-

saving methods: e.g. electrical materials being switched on when not being used, excessive use of air conditioning and heating systems, extensive use of water, and the utilisation of powerful inefficient electrical equipment.

- Bad transport habits, with the public transport system being the first culprit: inefficient, slow and irregular.

2 The first communication of Malta to the United Nations Framework Convention on Climate Change, April 2004


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Various avenues and approaches are possible: For industries: - Energy-efficient machines - Simultaneous generation of heat and electricity; For the country as a whole: - Efficient electrical equipment - Adapted use of air conditioning and heating systems - Environmental architecture: the conception of

buildings maximising the use of natural resources (orientation of openings, thermal isolation, etc.), internal recycling systems…

- A reliable public transport system, which needs to be efficient and attractive in order to reduce the use of private vehicles.

In promoting energy-saving programmes, one needs the participation of many players, ranging from government, industrial and commercial companies to individuals. Above all, there has to be a change in attitude through information. Every company and organisation has the responsibility to create awareness in their employees on energy consumption and efficiency. Biofuel Another challenge for modern societies is transport, with its economic and environmental considerations. In Malta, transport, whether public or private, relies solely on oil and its derivatives.


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Figure 8

Given that in 2004 there were 0.7 vehicles per person, a possible solution for Malta, apart from improving its public transport system, is the use of biofuels. These carburants can substitute, partially or not, petrol or diesel. Taking into account available resources in Malta only the production of biodiesel (a mixture of diesel and vegetable oils) can be feasible. Today the Island is still in the preliminary phase of biofuel production. Since March 2002 Edible Oil Refining Company Ltd (EORC), a private company, has been producing biodiesel by recycling kitchen oils gathered from restaurants and restoration areas around Malta. According to the Company, a wide and efficient collection of these used oils would amount to 4 tonnes of oil per year. Currently, the used oils being collected in Malta being insufficient, EORC imports from Libya and Sicily about 20 tonnes of oil annually. And though all the costs are borne by EORC, the price of biodiesel per litre is only 28 cents

Source: Environment Statistics, Malta, 2000


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(65�cents). The method used is a complete recycling of the oils with no further waste: 85% becoming biodiesel and the remaining 15% are derivatives of glycerine and fatty acids which are re-sold to soap-makers. The existing State monopoly impedes EORC from extending the sale of its product, but discussions between Enemalta and European Union are going on towards a large commercialisation of biodiesel once the monopoly ends in January 2007. Apart from Malta’s discussions with the EU to introduce a minimum of 5% of biodiesel by 2010, biodiesel is a real opportunity for Malta. Biodiesel is also suitable for Malta’s transport vehicles with 98% of its commercial vehicles and 18% of private vehicles running on diesel (6). Furthermore, the lower cost of diesel is an incentive that is attracting more people to its use as per the following projections:

Table 3

Year Petrol

(private vehicle)

Diesel (private vehicle)

Diesel (commercial)

Petrol (Car Hire

Vehicles)

Total Diesel

2000 65% 14% 19% 2% 33% 2005 62% 18% 19% 2% 37% 2010 57% 20% 21% 2% 41%

Evolution of car numbers in Malta between 2000 and 2010 Source: The first communication of Malta to the United Nations

Framework Convention on Climate Change Diesel engines are compatible with the use of vegetable oils, and no real modification is therefore necessary for their use. Studies show that biodiesel, thanks to its physio-chemical properties, improves engine performance and increases engine longevity. Porsche has published a study wherein biodiesel reduces, by half, engine wear.


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Figure 9

Source: NHSTA Power Point Presentation Furthermore, biodiesel reduces environmental impact on man: eye irritation, respiratory diseases (asthma) and cancer (see figure 9).


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III. METHODS AND TOOLS FOR THE DEVELOPMENT OF RENEWABLE ENERGY SYSTEMS

The introduction of RES depends on State decisions. Nonetheless, there is the need for individual and collective awareness and participation. What follows are some ideas and proposals which could be considered by Malta within the framework of its renewable energy policy. a. Establishing a National Agency for the Overall

Coordination of these Activities Such Agencies are already present in States which have or are developing RES, the objective being the promoting of RES and protecting the environment. These Agencies have at their disposal the necessary scientific and technical know-how to find satisfactory solutions for the environment. b. National Fund for RES Project Development In the past, Malta discarded a number of projects due to their high initial capital cost. Having a special fund solely allocated for RES would facilitate the adoption and implementation of such processes. Funds could be generated through possibly introducing: a) Fines for entities creating pollution; b) A tax for the usage of high-consuming electrical hardware, when alternative lower-consuming products are available; c) A penalty for the excessive use of resources (e.g. water, fossil fuels, etc).


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c. Advantageous Fiscal Measures to promote RES In addition to encouraging the consumer to utilise RES through a Government subsidy on the initial capital costs, one could also consider tax refunds for users of RES. Such measures exist in Malta for thermal energy, but could be further expanded making their use more attractive to consumers. d. Encouraging Business Development linked to RES The setting-up of a national RES solution for Malta would entail the establishment of companies and organisations specialised in RES, thus guaranteeing the proper functioning and maintenance of the systems adopted. e. Awareness Campaign A suitable RES solution can only be implemented following an intense awareness campaign that would foster the public support. f. Putting to good use EU Funds The EU has different programmes for RES, amongst which: � Intelligent Energy for Europe: a programme which supports financially local, regional and national initiatives for RES, efficient use of energy, energy aspects of transport and international promotion in this sector. For the period 2003-2006 215 million � were allocated. Four sectors with four sub-programmes were created : - ALTENER for RES - SAVE for energy efficiency. - COOPENER for the promotion of RES - STEER for energy in transport � The Sixth Framework Programme (FP6) for research funding, which is open to all, focusing on technological development, sustainable development, climate change and ecosystems. FP6 ends in 2006; the new funding programme commences in 2007.


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� The LIFE Programme for the Environment is divided into three parts, LIFE-Nature, LIFE-Environment and LIFE-Third World Countries. The overall objective here is to contribute towards developing systems and innovative environmental solutions for future implementation within the EU.


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IV. TOWARDS THE GOAL: TELOS

Renewable Energy Systems receive increased exposure, but there have been relatively few tangible developments. One possible reason could be the fact that adopting RES nation-wide in a resources-limited Malta would still not solve the impending energy problems. In truth, exploiting totally Malta’s eolian, solar and biomass energy potential, would only supply 25% of the existing demand on the islands. Nonetheless, the energy crisis is worldwide, and Malta has no choice but to forearm itself for the shortages to come. Suitable projects will also depend, for example, on the outcome of talks between Malta and Sicily on the construction of a gas pipeline between the two islands, as well as similar talks with Libya. What choice should be made? Being a member of the EU, Malta is bound by certain environmental norms, and can no longer afford short-term solutions and adjustments. Malta must concentrate on long-term solutions for tomorrow, which, today, are still lacking. One may suggest the following steps: 1. Embarking soonest on an awareness campaign, essential, to the success of RES projects. 2. Establishing, as a start an onshore eolian park on the island, which would be one way of having a power plant independent of international supply shortages. 3. Concentrating, at the same time, on waste-to-energy management.


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4. Favouring the production of biofuel and the use of solar energy.

THE GOAL

Figure 10

Figure 10 attempts to chart Malta’s potential development of RES in the near future. Finally, it is important that Malta starts seriously to implement some concrete processes. RES will, however, only be a part of an overall long-term solution, which is indispensable for the future sustainability of the Maltese Islands. Procrastination could prove detrimental and far costlier.

2012 2008

Offshore Eolian Park

Onshore Eolian Park

Biogas

Biofuel

2010

Awareness Campaign and Implementation of Efficient Energy Management

Indicative Chronology for the Development of RES in Malta

2006


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POSTSCRIPT This report was compiled in January 2006. In May 2006, the Prime Minister of Malta announced that his Government plans to set up offshore wind farms. While welcoming this declaration, the Fondation de Malte feels that such a process will not suffice on its own to meet Malta’s energy needs. As underlined above, a maximum production of electricity through RES in Malta would only account for 25% of current consumption. Evidently, the way forward has to be a combination of RES and traditional methods for the production of electricity. Let us go forward NOW.


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BIBLIOGRAPHY Reports and Official Documents • Report by Malta to the European Commission on the

Implementation of Directive 2001/77/EC on the Promotion of Electricity from Renewable Energy Sources, Malta Resources Authority, October 2005

• State of the Environment Report for Malta, Ministry for Rural Affairs and the environment, 2002

• A draft sustainable development strategy for Malta, National Commission for Sustainable Development, July 2004 (adopted in 2006)

• National Allocation Plan for Malta 2005-2007, Submission to the EU Commission, October 2004

• Environment Statistics, National Statistics Office, 2002 • The first communication of Malta to the United Nations

Framework Convention on Climate Change, April 2004 • State and Outlook 2005, Country analysis, European Union, 2005 • The effect of fuel input cost on the results of Enemalta’s

Electricity Division, Pricewaterhousecoopers, November 2004 Studies • Renewables in Malta, Isabel Boira-Segarra, Mott Macdonald,

Green Power Mediterranean Conference, November 2005 • Baromètre du solaire photovoltaïque, EurObserv’ER, April 2005 • Baromètre de l’éolien, EurObserv’ER, January 2005 • Baromètre du biogaz, EurObserv’ER, June 2005 • The Renewable Energy Potential of the Maltese Islands, Institute

for Energy Technology, University de Malta, Preprint September 2005

• Renewable Energies in Malta and beyond, Institute for Energy Technology, University of Malta, September 2005

• Presentation by Ing Tonio Sant, Developing Offshore Wind Farms in Malta: the facts, , Chamber of Engineers Conference, April 2005

• Biodiesel: The Clear Choice for Clean Air in Malta, students from James Madison University, Harrisonburg, VA, USA, June 2004

• Environmental Impacts of Wind Farms: Myth and Reality, Centre for Renewable Energy Source (CRES), Greece.


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• Methods of Financing Renewable Energy Investments in Greece, CRES, Greece, Septembre 2003

• Les français et les Energies Renouvelables, Louis Harris pour l’ADEME, Mai 2004

• A preferential island for extensive applications of Renewable Energy Sources in Europe and Mediterranean, Dr Nikolas Zografakis, Directeur de l’Agence Régional de l’Energie de Crête, RE-Island Conference, Septembre 2005


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This booklet forms part of the Fondation de Malte Telos Series. The choice of Telos for the name of the series is inspired by the Fondation’s objective to contribute towards the achievement of stated aims, Telos being the Greek word for finality.