As nations globally grapple with the challenges of transitioning to renewable energy, Malta is no exception. Faced with the pressing need to increase the supply of electricity, Malta is encountering growing pressure to decarbonise its electricity energy mix and modernise its grid infrastructure to align with global net-zero objectives.
A recent PwC report on the state of the energy transition highlighted six areas where global policies and pledges, including those agreed to under the 2015 Paris Accord, are falling far behind net-zero-emissions targets. Among the most conspicuous of these gaps is renewable electricity generation.
In this global context, Malta, like many developed countries, stands at a crossroads in its energy transition journey. The drive towards a sustainable future has highlighted the stark gaps between the country’s current energy technologies and infrastructure and the urgent need for advancement needed to meet future demands. This transition, critical in the fight against climate change, requires a comprehensive understanding of Malta’s unique position as an island nation and strategic planning. With distinct energy consumption patterns and challenges, Malta’s path to a sustainable energy future is fraught with unique challenges, but also ripe with opportunities.
The current electricity energy mix in Malta consists of 70% local generation from gas-fired plants, 20% direct imports from the Malta-Italy Interconnector, and 10% of local generation from renewable energy sources, mainly small-scale rooftop PV installations.
Governments, utilities and companies have begun to make plans to shift toward 100% emissions-free energy systems, but establishing goals is, in some ways, the easy part. In Malta, the success of renewable energy is evident, with photovoltaic installations contributing nearly 9.4% of the total electricity demand in 2021.The island is also keenly exploring offshore wind and offshore solar technology, a move in line with global trends that recognise renewable energy as a long-term and cost-effective answer to the growing demand for decarbonised economies that face growing electricity needs. This initiative is reflected in the draft National Policy for the Deployment of Offshore Renewable Energy, which was open for public consultation and is currently undergoing internal review.
Despite these promising plans however, there remains a clear gap between the current emissions trajectory and our 2050 targets, with an immense amount of work still to be done to ensure an orderly transition to a new energy paradigm that’s both just and sustainable, and that accommodates and enables economic growth.
In recognising that the path to reducing greenhouse gas (GHG) emissions lies largely in decarbonising the global energy system, with the increasing affordability of wind and solar power and the growth in renewable sources often exceeding market forecasts, the world is indeed moving in the right direction. However, addressing the energy transition’s significant shortfalls will require a vast and coordinated global effort. One PwC report offers a blueprint for progress built on five broad principles:
The efforts to close these gaps will span decades, meaning it’s important to separate short-term incentives from the medium and longer-term ambitions.
