Malta’s plans to strengthen its energy security and grid resilience have reached another important milestone. With the signing of the ‘Tender for the Supply and Installation of a 132kV Variable Shunt Reactor at Magħtab Terminal Station, with PowerFix JV, all the Engineering, Procurement and Construction (EPC) contracts for the second Malta–Sicily electricity interconnector (IC2) are now officially in place. This now marks the transition of IC2 from the design, permitting and procurement phase into full-scale execution.
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/