Enemalta plc is the only
Maltese energy company
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. Modern society consumes large amounts of fuel, and the energy indust ...
. It provides energy services in the Maltese Islands and is entrusted with the distribution of electricity, and the development of the national electricity distribution network. It employs approximately 600 people.
Enemalta operates the emergency plants of the
Delimara Power Station
The Delimara power station is located near Marsaxlokk in the southeast of Malta and is the newest power plant in Malta. It was put into operation in 1992 and redeveloped in the 2010s.
Setup
The Delimara Power Station includes four electricit ...
(444 MW, started up in 1992) and coordinates the dispatch of energy from the various plants. The
Marsa power plant (267 MW, commissioning in 1966) was shut down in 2014 and totally demolished two years later. The
Malta–Sicily interconnector
The Malta–Sicily interconnector is the submarine power cable which connects the power grid of Malta with the Italian Transmission Network managed by Terna, which is part of the European grid.
Technical characteristics
The long subsea cable st ...
links the island with the Italian electricity network with a capacity of 200 MW since April 2015.
A power plant in
Floriana
Floriana ( mt, Il-Furjana or ''Il-Floriana''), also known by its title Borgo Vilhena, is a fortified town in the South Eastern Region area of Malta, just outside the capital city Valletta. It has a population of 2,205 as of March 2014. Floriana i ...
(1896 to 1960), a power plant in Corradino (1939 to 1992) and Station A in
Marsa (1953 to 1993) were operated by Enemalta until their shutdown.
Since Malta does not have its own resources, Enemalta relies entirely on imported fuels. In 2006 the two power plants of the Enemalta produced 2261189
MWh
A kilowatt-hour (unit symbol: kW⋅h or kW h; commonly written as kWh) is a unit of energy: one kilowatt of power for one hour. In terms of SI derived units with special names, it equals 3.6 megajoules (MJ). Kilowatt-hours are a common bil ...
and released 0.8782 kg for every kilowatt hour generated.
Energy transition in the 2010s
![Power and Gas project](https://upload.wikimedia.org/wikipedia/commons/e/e7/Power_and_Gas_project.jpg)
Upon assuming office as Minister for Energy in 2013,
Konrad Mizzi
Konrad Mizzi (born 4 November 1977) is a disgraced Maltese politician and served as a Member of Parliament until 2022. He served as Minister for Energy and the Conservation of Water between 2013 and 2014, Minister for Energy and Health from 2014 ...
started implementing the Government’s energy plan with the primary aim of reducing utility tariffs. Previously utility tariffs in
Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
were considered amongst the highest tariffs in Europe, and following the reductions utility tariffs become the fourth cheapest in the European Union. This measure enabled the local industry to become more competitive.
This saw the transformation of the
energy in Malta
Energy in Malta describes energy production, consumption and import in Malta. Malta has no domestic resource of fossil fuels and no gas distribution network, and relies overwhelmingly on imports of fossil fuels and electricity to cover its ene ...
, contrasting with the situation when Mizzi was given the responsibility when Enemalta was close to declare bankruptcy, with €840 million in debt and was consecutively downgraded by
Standard & Poor’s
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is consi ...
. This affecting the credit ratings of the country at the time.
In December 2014
Shanghai Electric
Shanghai Electric (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. The company traces its roots to 1880.
Shanghai Electri ...
signed an agreement with the
Government of Malta
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
where it acquired a minority stake of 33.3% in the local energy producer Enemalta.
The acquisition was valued at €250 million. The restructuring envisaged new investment in the local distribution system, as well as transition from oil-fired energy generation to cleaner technology, such as the
Malta-Sicily interconnector, gas-fired plants and renewable energy sources. This is expected to increase the grid redundancy and flexibility. The Government of Malta retained the majority of share of the energy company.
Shanghai Electric
Shanghai Electric (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. The company traces its roots to 1880.
Shanghai Electri ...
was required to invest in the conversion to gas of the Phase 3 existing power plant which at present is powered by heavy fuel oil, valued at around €70million.
In 2016, and following the investment by
Shanghai Electric
Shanghai Electric (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. The company traces its roots to 1880.
Shanghai Electri ...
and the restructuring process that followed,
Standard and Poor's
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is consi ...
upgraded Enemalta's rating to BB- with a stable outlook. Enemalta and
Shanghai Electric
Shanghai Electric (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. The company traces its roots to 1880.
Shanghai Electri ...
established a joint venture to tap into renewable energy markets in Europe. They are jointly responsible for the development of the Mozura Wind Park project in Montenegro. In 2020 it was revealed that businessman
Yorgen Fenech
Yorgen Fenech (born 23 November 1981) is a Maltese businessman whose main interests are casinos and hotels in Malta. He was head of the Tumas Group and director of the Maltese-Azerbaijan-German company ElectroGas Malta.
Suspected of bribing ...
made €4.6 million through his company 17 Black from Enemalta's purchase of the wind farm venture in 2015.
![EU Change in CO2 emissions 2015-2014](https://upload.wikimedia.org/wikipedia/commons/5/5d/EU_Change_in_CO2_emissions_2015-2014.jpg)
The third pillar of the energy plan will also result in the closure of the
Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
power plant which has been operating since 1969. The Marsa power plant has been shut down, on cold standby, pending the completion of the new gas fired power plant. The local Opposition party criticised the
Government of Malta
A government is the system or group of people governing an organized community, generally a state.
In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government is a ...
that this plant has been shut down due to measures implemented by the previous Government and not due to the current Government’s plans. However, the current Government’s plan envisages the demolition of the 1992
Delimara Phase 1 Heavy Fuel Oil power plant.
Demolishing the 1992 power plant, would be impossible to achieve without a new power plant due to N-1 requirements.
Over 700,000 tonnes were reduced by shutting down the Marsa power plant. Statistics from the
Eurostat
Eurostat ('European Statistical Office'; DG ESTAT) is a Directorate-General of the European Commission located in the Kirchberg, Luxembourg, Kirchberg quarter of Luxembourg City, Luxembourg. Eurostat's main responsibilities are to provide statis ...
confirmed that Malta experienced the highest reduction in emissions in all the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
.
The second pillar that would be sustaining cheaper utility tariffs in the long-term was the development of a gas fired power plant. The development of this project is based on a
private-public partnership model. The
Delimara Power and Gas project is being developed by
Electrogas Malta Limited, a consortium that includes
SOCAR
The State Oil Company of Azerbaijan Republic ( az, Azərbaycan Respublikası Dövlət Neft Şirkəti), largely known as SOCAR is fully state-owned national oil and gas company headquartered in Baku, Azerbaijan. The company produces oil and na ...
,
Siemens
Siemens AG ( ) is a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe headquartered in Munich with branch offices abroad.
The principal divisions of the corporation are ''Industry'', '' ...
and
Gem Holdings
A gemstone (also called a fine gem, jewel, precious stone, or semiprecious stone) is a piece of mineral crystal which, in cut and polished form, is used to make jewelry or other adornments. However, certain rocks (such as lapis lazuli, opal, an ...
. The consortium has been restructured following
Gasol Gasol is a surname in Spain. Notable people with the surname include:
* Pau Gasol (born 1980), Spanish basketball player
* Marc Gasol
Marc Gasol Sáez (, ; born January 29, 1985) is a Spanish professional basketball player for Bàsquet Girona o ...
departure. Enemalta would be purchasing electricity. The local opposition Party has been critical of this project since its details were announced, including the procurement process. However, following parliamentary questions in the
European Parliament
The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it adopts ...
by
Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
’s
European People’s Party
The European People's Party (EPP) is a European political party with Christian-democratic, conservative, and liberal conservatism, liberal-conservative member parties. A transnational organisation, it is composed of other political parties. Fo ...
, the
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body o ...
stated that there were no procurement violations.
Electrogas Malta Limited has recently won the award for Best European Energy Project which is organised by IJ Global. The project is expected to contribute greatly to the decrease in particulate matter by 90%. Through the Delimara Power and Gas project,
Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
will be conforming for the first time, with the N-1 principle which is stipulated by
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
directives.
Such concept enabled
Malta
Malta ( , , ), officially the Republic of Malta ( mt, Repubblika ta' Malta ), is an island country in the Mediterranean Sea. It consists of an archipelago, between Italy and Libya, and is often considered a part of Southern Europe. It lies ...
to shift its financial resources onto other sectors, while simultaneously enjoying the benefits of modern and efficient infrastructure. The development of the gas fired power plant and the conversion to gas of another power plant is in line with the
Energy policy of the European Union, that encourages the shift to gas in the energy sector.
The Gas power plant was officially opened in April 2017. The new power station was inaugurated minutes after the 25-year-old Delimara I power station was switched off. The old power station chimney, a 150 m structure in Malta was demolished in 2018.
Political controversy
Questions have been raised regarding a number of agreements and arrangements made by Enemalta.
Možura Wind Farm
Investigations are being undertaken regarding Enemalta and the
Možura Wind Farm project in Montenegro with accusations that 17 Black, a company secretly owned by
Yorgen Fenech
Yorgen Fenech (born 23 November 1981) is a Maltese businessman whose main interests are casinos and hotels in Malta. He was head of the Tumas Group and director of the Maltese-Azerbaijan-German company ElectroGas Malta.
Suspected of bribing ...
made €4.6 million profit in the acquisition by Enemalta of shares in Možura. The deal was first discussed by Enemalta in late 2014. After a board meeting on Enemalta in January 2015, a Seychelles company Cifidex entered into an agreement with the Spanish consortium licensed to run the 46 MW wind farm to buy the shares for 2.9 million euros.
The shares were acquired by Enemalta with 90% sold to a consortium of
Shanghai Electric
Shanghai Electric (officially Shanghai Electric Group Company Limited) is a Chinese multinational power generation and electrical equipment manufacturing company headquartered in Shanghai. The company traces its roots to 1880.
Shanghai Electri ...
, Enemalta, Vestigo and
Envision Energy
Envision Energy () is a Chinese multinational corporation headquartered in Shanghai that provides wind turbines and energy management software.
History
Envision was founded by Lei Zhang in 2007 in Jiangyin, Jiangsu in the east region of China ...
for 10.3 million euros from Cifidex, which had completed their own purchase of the shares just two weeks earlier in December 2015 after Cifidex had been funded with 3m euro by 17 Black.
ElectroGas Malta
A December 2014 visit by
Joseph Muscat
Joseph Muscat (born 22 January 1974) is a Maltese politician who served as the prime minister of Malta from 2013 to 2020, and as the leader of the Labour Party from June 2008 to January 2020.
Muscat was re-elected as prime minister in the ...
as Prime Minister, his chief of staff
Keith Schembri
Keith Schembri (born in Cospicua, 26 July 1975) is Maltese businessman and political strategist who served as Chief of Staff to Prime Minister Joseph Muscat from 11 March 2013 to 26 November 2019. Schembri resigned in relation to the murder inv ...
and Energy Minister
Konrad Mizzi
Konrad Mizzi (born 4 November 1977) is a disgraced Maltese politician and served as a Member of Parliament until 2022. He served as Minister for Energy and the Conservation of Water between 2013 and 2014, Minister for Energy and Health from 2014 ...
resulted in the signing of a memorandum to buy liquid natural gas (LNG) for 18 years from the State Oil Company of Azerbaijan Republic
SOCAR
The State Oil Company of Azerbaijan Republic ( az, Azərbaycan Respublikası Dövlət Neft Şirkəti), largely known as SOCAR is fully state-owned national oil and gas company headquartered in Baku, Azerbaijan. The company produces oil and na ...
as fuel for a new power station in Malta.
ElectroGas Malta (EGM) which won the contract to build the €510 million project had Yorgen Fenech as a director and a shareholder,
Tumas energy, headed by Yorgen Fenech, was also a shareholder. In 2015 EGM was granted sole rights to sell SOCAR gas to Malta. EGM is contracted to sell electricity and LNG to Enemalta for 18 years. The first batch of LNG was bought by EGM from SOCAR for $113 million and sold by them to Enemalta for $153 million, further deliveries generated similar profits.
EGM took out a €450 million loan to finance the project, only secured following a €360 million state guarantee, in October 2017 Keith Schembri working with Yorgen Fenech got the government to extend the guarantee.
[{{cite news , url=https://lovinmalta.com/news/keith-schembri-was-personally-involved-in-electrogas-e360-million-loan-extension-negotiations/ , title=Keith Schembri Was Personally Involved In ElectroGas' €360 Million Loan Extension Negotiations , publisher=Lovin Malta , date=23 October 2020]
References
Energy in Malta
Marsa, Malta
Companies of Malta