This campaign follows the completion of a detailed survey, which was undertaken to further refine the submarine cable route between Malta and Sicily, the company said. During this survey, several magnetic targets were identified buried under the seabed that require further investigation to confirm their nature and ensure the route is safe for the installation of the submarine electricity cable.

A total of 707 magnetic targets were initially detected during the survey. Following desktop post-survey analysis, this number was reduced to 393 targets requiring further investigation. As a precautionary measure, the Identification and Clearance campaign will investigate these targets via specialized equipment and remove or relocate any obstacles that may pose a risk to the safe installation of the interconnector cable.

These features, located beneath the seabed, became visible only during the detailed survey stage, when investigations were limited to a precise 8-metre-wide sub-seabed corridor. Earlier preliminary route studies do not provide this level of resolution, as they are conducted across a much wider corridor and are not intended to identify such anomalies. While the discovery of these anomalies presented an additional technical challenge for the project, the issue was promptly addressed through the launch of the Identification and Clearance campaign to ensure that the route can be verified and prepared for safe cable installation.

The campaign will involve specialised offshore vessels and remotely operated equipment to inspect each identified target along the route. Where objects are confirmed not to pose a risk, they will either be recovered or safely managed on site. In the event that an object is identified as unexploded ordnance, the response will be coordinated with the relevant authorities, including the Armed Forces of Malta and the Italian authorities, to determine the appropriate course of action in accordance with established safety procedures.

The works will involve a multidisciplinary team of offshore survey specialists, divers, and Explosive Ordnance Disposal experts, supported by specialised vessels and equipment. Activities will vary by location and water depth, from deep‑water investigations at around 170 metres using remotely operated vehicles, to diver‑assisted inspections in shallower areas. These operations form part of the IC2 project and are essential to confirming that the submarine cable route is safe, and compliant with international standards before cable laying begins.

Inġ. Christian Spiteri, Manager at Interconnect Malta, stated that “the transition to the ID&C phase represents a significant step in the project’s timeline.” He noted that “The Identification and Clearance campaign represents an important technical step in preparing the seabed route for the Second Interconnector. Ensuring that the route is free from potential hazards is essential for the safe installation of the submarine cable and for the protection of personnel involved in the works. This process reflects the rigorous engineering and safety standards that guide the project as we continue progressing towards its next phase.”

“The Second Malta-Sicily Interconnector is a central element of Malta’s long‑term energy strategy and features prominently within the ‘Energy, Climate & Environmental Transformation’ priority of Malta’s Vision 2050. Once operational, it will double the country’s interconnection capacity, strengthen security of supply, and help drive Malta’s shift toward a more sustainable and resilient energy system.” Remarked the Hon. Dr Miriam Dalli Minister for the Environment, Energy and Public Cleanliness on this technical milestone. 

The project is co-financed by the European Union through the European Regional Development Fund (ERDF), reflecting the shared commitment of Malta and the European Union to investing in strategic infrastructure that supports energy security and the green transition.

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The supplies tender for the Design, Supply, and Installation of a 245kV 1x250MVA Auto-Transformer, alongside 1x120MVAr and 1x240MVAr Variable Shunt Reactors, has now commenced at the BEST manufacturing plant in Turkey. This transition ensures that the essential assets required for the successful operation of the second interconnector remain on track for delivery. 

The €20.2 million contract is being delivered by the local contractor AG Installations, working in close collaboration with their supplier, BEST.  

“We’re pushing forward with the implementation of our energy strategy, delivering projects that matter. We’re making significant investments in our distribution infrastructure, accelerating renewable energy growth, leading the way on battery storage, and progressing on the development of the second interconnector. Together, these initiatives will strengthen our energy security and transform our energy mix by unlocking more renewable energy opportunities.” Minister Dr. Miriam Dalli said.

Inġ. Ismail D’Amato, Chief Executive Officer of Interconnect Malta, emphasized the significance of this phase: “The commencement of manufacturing of the reactors and transformer marks an important milestone in the implementation of IC2. These components are not merely infrastructure; they are the pillars that ensure grid stability and voltage control, without which energy cannot be transmitted through the interconnector. Through its supervision, Interconnect Malta is supporting the delivery of a strategic asset designed to achieve high levels of reliability for the national network. ” 

These specific components, namely, the auto transformer and variable shunt reactors, are required for voltage regulation and reactive power control. Their integration is essential for maintaining the overall stability of the national grid and ensuring the safe, efficient transfer of electricity between Malta and Sicily. 

The Second Interconnector serves as a cornerstone of the Government’s energy strategy, designed to double Malta’s interconnection capacity and significantly enhance security of supply.  

By reducing reliance on local fossil-fuel generation and facilitating the integration of large-scale renewable energy, IC2 is pivotal to the nation’s green transition. This strategic investment is co-financed by the European Union under the European Regional Development Fund (ERDF), reflecting a shared commitment to strengthening Malta’s energy resilience and sustainability within the European market. 

The post Manufacturing commences on critical infrastructure for second Malta–Sicily Interconnector first appeared on The Malta Business Weekly.

With the unanimous Planning Authority’s approval secured, the project is now at design stage. Following the completion of this phase, works will commence in the coming months. The project will include advanced odour control systems and sound mitigation measures to ensure the plant operates in harmony with its surroundings.

The upgrade will also increase the production of New Water, providing farmers with a dependable source of reclaimed water while reducing the demand on natural groundwater resources.

Water Services Corporation CEO Karl Cilia said this project represents a responsible and forward- looking investment in Malta’s wastewater infrastructure. “Now that the tender process has been completed and the contract signed, we are ready to deliver a modern facility that prioritises water quality, environmental protection, and community well-being. This project will ensure cleaner, quieter, and more efficient operations at Iċ-Ċumnija.”

This investment forms part of WSC’s €377 million National Investment Plan, aimed at strengthening water and wastewater infrastructure across Malta and Gozo.’

Minister for the Environment, Energy and Public Cleanliness Miriam Dalli emphasised the environmental importance of the investment: “This upgrade shows how we improve essential infrastructure while respecting the natural environment. By ensuring higher-quality treated effluent, minimising odours, and reducing noise, we are protecting nearby communities and natural habitats while supporting sustainable water reuse.”

The WSC also welcomed the position adopted by the Mellieħa Local Council, which voted in favour of the development permit.

This €33.15 million project reaffirms the Water Services Corporation’s commitment to cleaner water, responsible operations, and lasting environmental stewardship.

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During the meeting, the Government’s long-term plan for the modernisation of service infrastructure in Gozo was presented. This plan looks beyond immediate needs and lays the foundations for a country that is prepared for the future. It was emphasised that this work is not merely an investment in projects, but in essential services that directly affect quality of life and the resilience of the Maltese Islands.

Minister Miriam Dalli stressed that this is a strategic plan that ensures continuity and clear implementation. “We are investing consistently and in a planned manner so that our country’s infrastructure can meet tomorrow’s realities. Gozo is an integral part of this national vision, and the projects being implemented here are designed to strengthen resilience, security, and service quality for the years to come,” said Minister Dalli.

Minister Clint Camilleri stated that this work confirms that Gozo is being given the same importance as Malta in the country’s national development plan. He explained that, “Investment in energy and water is crucial so that Gozitan families and businesses have better, more reliable, and more resilient services. Many of the roads we have upgraded have also been provided with new services, as is being done in Marsalforn Road, in order to reduce inconvenience in the future.”

With regards to the energy sector, discussions focused on two new distribution centres that will be built in Kerċem and Għajnsielem. The latter will accommodate a new 132kV cable that will serve as a new link between Malta and Gozo. This project will modernise and diversify the electricity supply to Gozo and significantly strengthen the system’s resilience, alongside extensive reinforcement works on the distribution network across the island.

In the water services sector, the Water Services Corporation invested more than €3 million in four major projects over the past year, involving upgrades to water and drainage networks in Nadur, Sannat, and Kerċem. Investment was also made in the Ħondoq Reverse Osmosis plant, while a new reservoir was built at Tas-Seqer to strengthen water supply to western Gozo.

In collaboration with the Ministry for Gozo and local councils, further infrastructure projects were completed in various localities. Work is currently underway on a number of other projects, including the route between Rabat and Marsalforn, network upgrades in several villages, and new investments in pumping stations and reservoirs. In the coming weeks, new works are also expected to begin on various roads, as well as an €8 million project to modernise water networks using environmentally friendly methods.

A crucial environmental project for Gozo was also discussed during the meeting — the upgrade of the sewage treatment plant and polishing plant at Ras il-Ħobż, with an investment of €25 million. This project will significantly enhance environmental services on the island of Gozo. The call for tenders for this project has been published and is expected to close in the coming days.

The Gozo Regional Committee welcomed these plans as an important step but clearly emphasised that Gozo has different realities from Malta, particularly due to its double insularity. The Committee confirmed that it will continue to closely monitor these plans and collaborate with national authorities, while representing the interests of Gozo and its stakeholders. “It was a very important meeting because, naturally, Gozo has a growing population and therefore demand for both water and electricity is continuously increasing,” said GRC Chairperson Michael Galea.

The GRC is a committee within the MCESD, a member of the MCESD Council, and one of the Social Partners representing Gozo.

The Ministers thanked the members of the GRC for their contribution, as well as Enemalta and the WSC for their continuous and professional work, while reiterating the Government’s commitment to continue investing substantially in Gozo so that energy and water supply becomes more stable, modern, and sustainable.

The post Long-term energy and water plans for Gozo discussed with the Gozo Regional Committee first appeared on The Malta Business Weekly.

A national nine-year plan has been launched to further strengthen and modernise the electricity distribution system in Malta and Gozo, through strong investment in infrastructure, new distribution centres, and additional connections to increase the flexibility and resilience of the national grid.

This was announced during a press conference addressed by the Minister for the Environment and Energy, Miriam Dalli, and Enemalta’s Executive Chairman, Ing Ryan Fava, during which the nine-year national plan to continue reinforcing the country’s energy distribution infrastructure was presented.

The plan includes 12 new distribution centres, a new 132kV link between Malta and Gozo, and specific projects for Gozo, while preparing the system for economic growth and increased demand in the coming years.

During the same press conference, Enemalta also announced new branding under the message “Energy that moves you!”, highlighting its role as an organisation that delivers an essential service to the country and underlining the importance of energy in our daily lives.

In her comments, Minister Miriam Dalli stressed that this plan forms part of a broader government vision that plans for the long term while acting now. “What we are talking about today is not a plan on paper. It is a plan that is being implemented. After the summer of 2023, we had a choice. We chose to roll up our sleeves. We accelerated the plan, increased investment, and carried out more work in less time. Today we are seeing the results, and we are preparing our country not only for today, but for the realities of five, ten years from now and beyond.” The Minister also emphasised that this is being done while families and businesses continue to benefit from stable energy bills, in contrast to what has happened in many other countries.

Enemalta’s Executive Chairman, Ing Ryan Fava stated, “Through a phased reinforcement programme, Enemalta has already taken significant steps to improve the reliability of the electricity network in Malta and Gozo. These investments are crucial to continue strengthening the resilience of the network and to ensure a more stable and efficient energy supply for families and businesses. Through this Nine-Year Plan, the national energy distribution system will continue to be reinforced and prepared for future challenges. The new branding of Enemalta’s clearly reflects the strategic direction the company is taking to continue to invest in modern, resilient and sustainable infrastructure that meets the country’s needs today while preparing for the future.”

Over the past two years, €90 million have been invested to strengthen the distribution system. In addition, a further €40 million have been invested in new distribution centres, which are expected to be completed by middle of this year.

Work on the grid is already delivering results. The first phase of the reinforcement programme led to the completion of 83 kilometres of new medium-voltage cables and upgrades to low-voltage networks, resulting in a significant reduction in outage durations. In the second phase, a further 63 kilometres of new underground cables were installed, focusing on strengthening capacity and resilience in localities across Malta and Gozo.

The post Nine-year national plan to strengthen the national grid and energy security first appeared on The Malta Business Weekly.

Invited to preside over the inauguration of this project, the Minister for the Environment, Energy and Public Cleanliness Miriam Dalli praised the private initiative as a showcase of investment in sustainability. 

“Today’s inauguration marks the completion of an extensive renewable energy investment and represents a practical example of how the private sector can contribute directly to our long-term sustainability objectives. Projects like this demonstrate that the transition to clean energy is achievable, scalable, and beneficial both environmentally and economically,” Minister Miriam Dalli said during the inauguration. “By generating a significant portion of its electricity on-site, this organisation is showing genuine commitment to responsible energy use,” she added.

The project was designed to prioritise minimal land intervention and to avoid land disturbance and ensure the site can be fully restored in the future.

“This is exactly the type of forward-looking, sustainable innovation that aligns with our national energy strategy,” Minister Dalli said.

The installation has a total capacity of 830 kWp and is projected to generate approximately 1,286,500 kWh of clean energy per year, reducing an estimated 588 tons of CO₂ emissions annually. The solar farm spans 10,000 square metres.

The project avoided excavation and concrete foundations, instead using recycled aluminium structures secured with Maltese limestone counterweights placed directly on the ground. This approach allows for straightforward dismantling at the end of the installation’s lifecycle, enabling the land to be restored to its original state.

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The newly signed tender covers the final component of onshore electrical and civil infrastructure at the Magħtab Terminal Station, where IC2 will link into the Maltese grid. The scope of work includes the manufacture and installation of a 132kV variable shunt reactor, including civil works, which are expected to commence in the first weeks of next year.

“The second interconnector is a central component of Malta’s long-term energy strategy. By providing additional transmission capacity between Malta and the European network, IC2 will improve the island’s grid’s resilience whilst facilitating greater integration of renewable energy sources. The project is also a cornerstone of Malta’s decarbonisation strategy, reducing reliance on fossil fuels and supporting the transition to a cleaner energy mix,” Minister Dr. Miriam Dalli said.

Over the past year, Interconnect Malta Ltd (ICM) has overseen the successful completion of several key stages. Earlier in 2025, Sicily’s Regione Siciliana and Italy’s Environment Ministry granted the approvals required for the project to proceed in Ragusa, Italy.

By April, contracts had been signed by the Department of Contracts for the manufacture and installation of the subsea cable, while in August production was already under way at specialized manufacturing facilities in Norway and the United States.

In September, the project advanced further with the detailed seabed mapping and marine surveys along the planned cable corridor between Malta and Sicily. Moreover, physical cable laying works in Ragusa, over a 21km stretch, are underway with 6km of trenches carried out and 4km of cable laying completed. Foundations in the Ragusa Terminal Station have also hit a new milestone as Terna Energy Solutions Srl are completing the 220kV Shunt Reactor’s foundations’ civil works. Furthermore, following the delivery of 220kV cables, works in Malta also commenced at Maghtab were trenching works are ongoing as to commence the cable laying works soon afterwards. Simultaneously, the manufacturing of the subsea and land cables will continue ahead of the marine and land cable laying operations. Furthermore, in the next months, the manufacturing process of two 220kV shunt reactors and a 220kV/132kV autotransformer will start.  

“ICM has emphasized its commitment to ensure that all work is carried out with full respect for environmental safeguards, with the project being climate proofed and having obtained all Environmental Impact Assessment and development permitting clearances. With the signing of this final EPC contract, IC2 has now entered a delicate execution phase. This milestone represents not only a technical achievement but also a clear signal of progress toward a more secure, sustainable, and interconnected energy future for Malta”. Dr. Ing Joseph Vassallo, ICM Divisional Manager, said.

Information about IC2 an EU Funded Project

The project consists of a new ~122km long 225MW HVAC electrical cable interconnection through a 245kV submarine cable between Malta (Maghtab) and Sicily (Ragusa) to be laid in parallel but at a safe distance to the existing HVAC cable link which was commissioned in 2015.  

This €300 million project was approved for ERDF funding, specifically under Priority 2, ‘Promoting clean and fair energy transition, sustainable wastewater management, and green investment’, and Specific Objective 2.3, ‘Developing smart energy systems, grids, and storage outside the TEN-E network’. The second interconnector will not only increase the security of the electrical supply but will also lead to increased investment in renewable energy, which will help Malta better handle the intermittent nature of green sources like offshore wind and solar. Once completed, the 245kV submarine cable will double Malta’s connectivity to the European energy grid. According to the project’s cost-benefit analysis, 13.5 million tonnes of CO2 emissions will be reduced, enhancing its significance in Malta’s long-term decarbonisation strategy.

This project has been designated as an ‘Operation of Strategic Importance’ due to its significant contribution to the achievement of national priorities for the 2021-2027 Programme.  The ERDF funding allocated to the project amounts to €165 million and will cover more than half of the total investment costs estimated at approximately €300m.

More information can be found at: https://icm.mt/projects/ 

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Perez, who was appointed CEO of ElectroGas Malta in June 2024, explained: “The most important factor in guaranteeing a reliable electricity supply is having a mix of generation sources. If a country depends entirely on one type of power generation, it is only a matter of time before problems arise – problems that inevitably impact the population.”

He highlighted Enemalta’s approach as a positive example: “It’s not just one or two power plants providing energy. There is also an interconnector with another country, as well as PV panels on rooftops. This diversity ensures that electricity comes from multiple sources, which is becoming essential for energy security.”

While ElectroGas plays a central role in Malta’s energy landscape, Pérez noted that the company is only one part of the wider system. “Our priority is to deliver the country’s base load. That responsibility provides peace of mind to Malta, knowing that we are here to ensure supply stability.”

Reflecting on his 14 months with the company, Perez praised ElectroGas employees for their professionalism and sense of responsibility. “Our staff are deeply aware of the importance of their work. We make sure to recognise their contribution, as their efforts directly impact society,” he said.

He recalled a recent blackout in Spain that had fatal consequences due to the loss of critical devices and phone networks. “Events like that remind us that this work has a real impact – and we take that responsibility very seriously,” Perez added.

Delimara plant cannot cover peak demand alone

Perez acknowledged that Malta’s Delimara power station would not be able to meet the island’s peak electricity demand on its own if the interconnector with Italy were to fail.

The ElectroGas CEO confirmed that the company’s Delimara 4 power plant produces more than 46% of Malta’s electricity. In addition, ElectroGas supplies gas to Enemalta’s Delimara 3 plant, bringing the company’s contribution to around 60% of the island’s total energy use.

However, Pérez cautioned that without the interconnector, Malta would struggle to meet summer peak demand. “For peak season in summer, probably not,” he admitted when asked whether the Delimara station could compensate for a complete interconnector failure.

He stressed that ElectroGas supports Enemalta’s strategy and in strengthening national resilience: “As operators of one of the country’s most critical facilities, and as a key player in the local energy mix, we actively support Enemalta’s efforts to enhance national resilience.”

Renewal talks with Enemalta yet to begin

ElectroGas’ contract with Enemalta requires it to supply electricity for 18 years, with nearly half that period already elapsed. Perez confirmed that discussions about renewing the agreement have not yet started.

“It is still too early for those talks,” he said. “When the time comes, the decision will depend on whether Enemalta is satisfied with our performance. We are proud of the work being done here and continue to invest in upgrades, such as the upgrade of the gas turbines, to improve efficiency.”

Regarding fuel supply, Pérez noted that Delimara currently relies on a gas tanker, which was originally intended as a temporary solution until the Malta-Italy pipeline is completed. “At this stage, I have not heard of any changes from Enemalta. They are the decision-makers on gas supply, and I don’t expect developments in the short-term. The LNG terminal can always offer flexibility and diversify gas supply to Malta. This is in line with the trend in other European countries which are heavily reliant on Russian gas,” he said.

Sustainability, ESG, and community engagement

Since Pérez’s arrival, ElectroGas has strengthened its focus on sustainability and environmental, social, and governance (ESG) commitments.

“This plant replaced a heavy fuel oil facility, reducing particulate and SOx emissions by 90% thanks to LNG. It’s a major improvement for Marsaxlokk and the surrounding communities,” he said.

The company has increased its community outreach, running initiatives such as its Community Investment Programme. Current projects include collaborations with NGOs like Inspire and the Red Cross, support for ambulance equipment, and environmental clean-ups.

Recently, ElectroGas partnered with an organisation representing Ukrainians in Malta, donating bicycles to refugee children and supermarket vouchers to families in need. “We want to be sustainable, but also to care for people in need and support society,” Pérez said.

Responding to negative publicity

ElectroGas has in the past been associated with public scrutiny and ongoing investigations. Pérez acknowledged this context but emphasised the company’s current direction: “Since joining ElectroGas, my experience has been that the company is operating to high professional and governance standards. Indeed, the governance here is among the best I have encountered. We continue to strengthen our compliance framework, align with international best practices, and maintain full transparency with our stakeholders. These efforts are essential to ensure that ElectroGas remains a trusted part of Malta’s energy future.”

He added that while external controversies may at times overshadow the company’s role, “what I see daily is the dedication of our people, whose work provides a vital service to the country. Their professionalism deserves recognition, and our focus is on building trust through consistent performance and responsible operations”.

The post Energy mix essential for secure power supply, ElectroGas Malta CEO says first appeared on The Malta Business Weekly.

The Chamber is advocating for a gradual reduction of subsidies while simultaneously boosting incentives for renewable energy adoption.

Presenting 47 streamlined proposals for the upcoming Budget 2026, The Malta Chamber of Commerce, Enterprise and Industry is pushing government to act now on several sectors, including the phasing out of energy subsidies and going greener to secure Malta’s long-term sustainability and move more towards a well-being economy, in its pre-Budget 2026 document

The Malta Independent spoke to CEO of The Malta Chamber of Commerce Marthese Portelli, who outlined the Chamber’s pre-Budget 2026 proposals in its document, “Time to Action,” ranging from energy transition and infrastructure to transport and tourism. She said that some measures may prove unpopular but are necessary.

Portelli said that the Chamber presented its pre-budget 2026 document to government and Opposition earlier this week, and the reaction to the proposals was overall very positive.

Portelli said that the Chamber does not limit itself to the annual pre-budget exercise.

“We do not wait for the budget season. Apart from submitting our feedback to public consultations, throughout the year we hold several meetings with Government and Opposition representatives, including government entities and authorities, during which we discuss proposals, ideas and issues encountered by businesses. Last year, we held more than 50 meetings to this effect,” she said.

Last year, the Chamber introduced a tracking system to monitor which of its proposals have been taken up and implemented, and to assess whether there is tangible improvement in take-up and implementation from one year to another. “This gives us timely status updates on the adoption and implementation of our proposals. It acts as a metric that helps both us and government to measure and register progress, if any,” Portelli explained.

The Malta Chamber also streamlined its proposals, cutting the number from 200 last year to 47 this year, and aligning them under the pillars of Malta Vision 2050.

“This year’s budget needs to pave the way to kick off implementation of Malta Vision 2050. For this Vision to be implemented in a timely manner, we have to start working on it from today,” Portelli said.

While some of the Chamber’s measures may be viewed as unpopular because they require a culture change and addressing the status quo, Portelli said that their budget proposals are designed for the good of the nation and in favour of a well-being economy.

“The Chamber does not think in silos. Our proposals are designed to address the various challenges that we face as a nation, challenges which impact both businesses and the general public. People and businesses are interconnected, with each relying on the other. The success of one directly influences the success of the other, creating a mutually beneficial relationship,” she said. Portelli said that this is why the Chamber’s documents repeatedly emphasise well-being as a cornerstone of economic and social policy.

“Every proposal that we put forward is implementable, but there needs to be the will and the right structures in place,” she said.

For example, one of the Chamber’s proposals is on how the government can increase efficiency and efficacy within the civil service and the public sector. 

Portelli acknowledged the many valid employees working within the public sector, many of whom have years of experience and expertise within government, but who may not necessarily be currently deployed or assigned to the work they excel at.

Portelli said that the Chamber proposed a comprehensive review of job roles and responsibilities within all government ministries, entities and departments to identify areas of duplication, streamline processes and eliminate unnecessary bureaucratic layers, capture overstaffing and reassign roles and responsibilities to have a leaner public sector which is more responsive.

“We would have discussed these proposals not just internally and within our Council, but we would have also gathered feedback from the business community,” Portelli said.

Energy transition: incentives over subsidies

A central theme of the Chamber’s proposals is on energy transition. Portelli emphasized that Malta must prepare for the eventual phasing out of government’s energy subsidies. She cited the 2024 EU Country Report, which urged Malta to phase out these subsidies gradually. Additionally, she mentioned the Central Bank’s 2025 Discussion Paper, which highlighted the advantages of a well-communicated, gradual suspension of subsidies – according to the Central Bank, this approach would ease the adjustment costs on the real economy while still encouraging private investment in greener and more affordable energy alternatives

“We sat down with our members and explained why it is important to start factoring in the eventual tapering off of energy subsidies in their business plans, annual budgets and infrastructure investment.” Subsidies should be phased out gradually, giving businesses sufficient notice and enough time to adjust. Sudden stops should be avoided. she said.

The Chamber is advocating for a gradual reduction of subsidies while simultaneously boosting incentives for renewable energy adoption.

Portelli said that its proposals include an open rolling call scheme for renewables coupled with  the removal of VAT on photovoltaic panel installation (following models in other EU states),  revisiting tax fringe benefit laws to reflect today’s vehicle cost, particularly green cars.

She said that one of last year’s proposals, which was also proposed in this year’s pre-budget document, was to reimburse VAT when a person wants to replace their appliances for more energy-saving ones.

“In truth, energy prices are subsidised through taxpayers’ money. Therefore, while it may seem that the government is saving you money on your electricity bill, you are still actually paying for it, and ultimately it is being deducted from investment in other areas.” Portelli said.

Furthermore, the Chamber is also proposing the introduction of increased tax credits for businesses investing in renewable energy infrastructure and the purchase or lease of electric vehicles, and supporting manufacturing companies in INDIS estates to cover energy consumption costs through renewable systems.

“Blanket subsidies instigate waste,” Portelli said.

She said that one of the proposals government took on board was to write by how much the energy price was subsidised by the government on one’s electricity bill.

“There, you are already raising an element of consciousness, where the user is made aware of the real cost. It is a small step, but it helps to raise awareness,” Portelli said.

“We must empower businesses to invest and become more sustainable. We need to reward those businesses which, through their actions, are helping us reach renewable energy targets as a country,” Portelli said.

Since government is insisting that it is going to keep energy subsidies, Portelli was asked if the Chamber is worried that a “knee-jerk” reaction would occur, negatively affecting businesses.

“We have voiced our position multiple times. We favour a gradual tapering off. Knee jerk reactions should be avoided at all costs. Ultimately the buck lies with Government. However, we would do well to take heed of the EU Country Report and that of the Central Bank on the subject matter,” she said.

“Additionally, we need to seriously consider the liberalisation of our distribution market, keeping in mind the EU Electricity Market Directive requirements and that the 8-year derogation is bound to expire in 2027 – there is no guarantee that we will be granted further derogations or extensions,” Portelli said.

She said that capital investment and recurrent expenditure need to be looked into as well and recalibrated accordingly both from an ROI perspective and from a national priority perspective,” Portelli said.

Tackling traffic: a mentality shift

Portelli said that to mitigate traffic, the number of cars on the road needs to decrease.

Among the Chamber’s key proposals are an e-mobility wallet, allowing citizens to use government transport subsidies on environmentally sustainable or shared transportation options of their choice, coupled with parking fees in central urban areas with fees paid being transferred back into the e-mobility wallet.

Parking fees are common in many European countries, “however, our proposal aims to incentivize sustainable travel further. When one pays the parking meters fee, this would be reimbursed to the individual in their e-Wallet, so that they can then use it on alternative, sustainable systems,” Portelli said.

The Chamber is also proposing expanded park-and-ride schemes and smart parking systems integrated with GPS, AI-driven monitoring of loading/unloading bays and delivery logistics to ease business operations.

It is also proposing a centralised, AI-based permitting system for works and road closures, integrating and coordinating activities currently overseen by local councils, government entities like Transport Malta, Infrastructure Malta, Water Services and Enemalta, as well as telecoms companies.

Asked about the waste management challenge in the country, she described it as a “plague.”

Portelli said the Chamber is pushing for accountability through new measures such as barcoded waste bags.

“Enforcement would be more straightforward. It would be clear which household the waste bags belong to, making them easily traceable and serving as a deterrent,” she said.

“Who pollutes must be held accountable. Good citizens and businesses who respect sustainable practices should be acknowledged.”

Infrastructure and population pressure

Malta’s growing population and increasing tourism numbers are adding strain to the country’s infrastructure, Portelli said.

“For the past four years or so, we have repeatedly pointed out that our infrastructure is not keep up with the population pressures and respective demand. Energy and water infrastructure, roads – all are under pressure. Some solutions may be unpopular, but if they are fair and ensure a level playing field, people will accept them,” she said.

On tourism, Portelli said that the Chamber continues to push for quality over quantity.

“Quantity puts extra strain on infrastructure. Whether a tourist stays in a five-star or a three-star hotel, they should all be given a quality experience. If you ask me, have we reached the quality levels desired yet? I would say no. We must look not just at the number of tourists but also at their net spend. We should also look at the country’s capital and recurrent expenditure towards the sector,” Portelli said.

Budget expectations

Prime Minister Robert Abela recently promised that the 2026 Budget would be “the best budget ever.” She was asked whether she considered this a populist claim.

“We hear this every year. I would not like to speculate at this point. We need to wait till budget day to see what is going to be proposed,” Portelli said.

“When we hear the term ‘best budget ever,’ we like to think it will address the 12 major challenges we have identified. If those are tackled seriously, then perhaps it can be called the best. But we have yet to see,” Portelli said.

The post Energy subsidies should be gradually phased out, renewable energy incentives boosted – Chamber CEO first appeared on The Malta Business Weekly.

When the project was announced in 2022, the intention was to increase the number of such chargers from the then 340 to 1,572 in three years.

But, according to the Energy and Water Agency, at present “there are a total of 378 public charging points”, excluding private installations which Energy Minister Miriam Dalli last January said amounted to a mere 16.

With less than four months to go till the end of the year, it is highly unlikely that the target set in 2022 will be met.

This mission to bolster EV charging infrastructure coincided with the government’s long-term ambition for transport in Malta to become carbon-neutral by 2050. As detailed in Malta’s National Electromobility Action Plan, this is aimed to be accomplished through the electrification of the transport sector. This was affirmed by Minister Dalli herself through an opinion piece she published with MaltaToday back in April 2022, in which she remarked that “the switch towards electric vehicles (EVs) will play a crucial role” in achieving overall carbon neutrality.

Project faced delays ‘due to decisions aimed at strengthening and improving the overall project’ – EWA

Answering questions, the Energy and Water Agency (EWA) told this newsroom that “the EV Charging Pillars project has faced delays due to decisions aimed at strengthening and improving the overall project”.

The EWA said that this project has encountered delays during the public procurement process, “particularly in relation to the establishment of tender technical specifications”. This led to the agency seeking the input of an external consultant “to ensure that such specifications and terms of operation reflect market developments”.

The EWA said that “a number of new technical requirements on charging pillar infrastructure were introduced during the implementation lifetime of this project, namely through the AFIR Regulation (Alternative Fuels Infrastructure Regulations),” such as “the new fast-charging pillars, which will have an integrated point of sale terminal, allowing ad hoc charging, a requirement of AFIR.”

The EWA said the implementation of this project, that is, the setting up of more charging points/pillars, will be accelerating over the coming months, extending into 2026.

The EWA added that customers will be able to use “a single enhanced app” to use these charging pillars, including ones that may be supplied by different providers.

In spite of this project’s missed deadlines, the EWA noted what it described as “significant progress” in 2025. Throughout this calendar year, the responsible Agency said it has worked on “the publication of tenders related to works and supplies for 820 charging points, submission of permits for roadworks on the locations of 500 charging points, as well as the completion of infrastructural works related to the installation of 124 charging points”.

The EWA also told this newsroom that with the plans to diversify the country’s energy supply mix, the pending introduction of the second interconnector, and the sustained investments to reinforce the country’s electrical grid and distribution system, “the country is well prepared” to add this electrical infrastructure without disrupting the grid.

What does this mean for 2030 target to have 6,500+ EV charging points?

Unless the government defies all odds, 2025 will mark the second time that the government fails to abide by its own set targets to increase EV charging infrastructure. Once it gets past this hurdle, government authorities have Malta’s 2030 target to think about: for Malta’s EV charging infrastructure to comprise of at least 6,500 EV charging points.

The government had first pledged to significantly increase the stock of public charging infrastructure in October 2022 during that year’s Budget (Budget 2023). It was announced that 1,200 EV charging points would be added to public infrastructure by the end of 2024. The government eventually amended this target and pushed this deadline for the end of 2025 after authorities failed to come close to what was envisioned by that point, making it all the more disappointing that the count of charging points doesn’t seem to have eclipsed 500 so far, let alone the intended 1,572 in four months’ time.

In its 2022 electoral manifesto, the Labour Party had pledged to “invest” in 1,200 charging points over the following three years; its wording did not commit the government to install 1,200 charging points by the end of this year.

In April 2022, Minister Dalli had written that “improving infrastructure to support EVs is just as important as getting customers to buy them”, yet the government’s inability to abide by its own set deadlines highlights great concern on its long-term commitment to the cause – especially its commitment towards its 2030 goal to bolster this infrastructure and its 2050 ambition to phase out internal combustion engines (ICE) off our roads.

In October 2024, Minister Dalli had reiterated the government’s commitment to its aim of having 6,500 EV charging points across the Maltese islands by 2030, as per Malta’s Low Carbon Development Strategy (LCDS). The LCDS maps out Malta’s decarbonisation journey till 2050.

In November 2024, Minister Dalli stated that the total count of EV charging points in Malta and Gozo stood at just 372 charging points. This data was released in response to a parliamentary question submitted by reinstated PL MP Rosianne Cutajar.

In May of this year, there were still just 408 charging points across Malta and Gozo, according to Minister Dalli herself, although it was not specified if this number included private installations. Parliament data shows that no new charging points were added around the country between 27 January and 12 May earlier this year. The disclosed number of EV charging points on both tail-end occasions of this four-month period was the same, at 408 EV charging points, highlighting stagnant results despite reality being so distant from intention and a renewed deadline looming nearer.

As it stands, the government must add over 6,000 EV charging points around the Maltese islands in just over four years if it is serious about reaching its 2030 target.

EVs growing more popular, still only comprise around 3% from Malta’s total stock

The number of non-fossil-fuel-powered cars – that is, electric and plug-in hybrid engines – in the Maltese islands still only represents around 4% of all cars registered on Maltese roads, though the popularity of these greener vehicles has risen significantly in just the past three years and is trending to continue rising. Excluding plug-in hybrids, purely electric vehicles comprise just 3.2% of all registered vehicles in the country.

In Q1 2022, electric and plug-in hybrid engines comprised just 1.7% of the total stock of licensed motor vehicles, at just 7,122 total vehicles in the Maltese islands at the time. Fast-forward three years later and as of Q2 2025, this segment of vehicles has more than doubled and now represents 4.3% of all stock, equating to 19,493 vehicles from the grand total of 450,794 registered vehicles at present.

The number of purely electric vehicles across the Maltese islands grew by 6% between the first two quarters of 2025 – up to a total of 14,555 electric vehicles. In contrast, during this same timeframe, the number of petrol vehicles increased by just 0.7% (around 1,834 cars) while the number of diesel-powered vehicles decreased by 0.1% (approximately 156 cars).

As of Q2 2025, there are 262,047 petrol-powered vehicles and 155,846 diesel-powered vehicles across the country. Collectively, these vehicle categories represent 92.7% of all registered vehicles.

The growing total of electric cars and plug-in hybrids signifies an increasing need for EV charging infrastructure to grow alongside these vehicles’ increasing demand. While drivers of fossil-fuel-powered cars simply go to a petrol station to fill up their car’s tank, EV owners must charge their cars at either one of these public EV charging points or inside a privately-owned garage. At the moment, there is one public EV charging point per 46 cars across the Maltese islands; the strain for an EV owner to locate a spot to charge their car, if they don’t own a garage (which have grown tremendously in price over recent years), is set to increase significantly until government targets are prioritised, fulfilled, and updated for future needs.

In addition, the government aims to electrify its entire fleet of vehicles by 2030, according to Malta’s Low Carbon Development Strategy. If over the coming years supporting infrastructure still lags behind envisioned targets, in spite of the EWA’s ongoing works, then questions may arise on the sensibility of this electrification process.

The post Government set to miss target to bolster electric vehicle charging infrastructure first appeared on The Malta Business Weekly.