Expert evaluation network delivering policy analysis on the performance of cohesion policy 2007-2013 : year 1-2011 : task 1 : renewable energy and energy efficiency of residential housing : Malta

Abstract

Malta introduced the first renewable energy scheme in 2006, which promoted the use of Photovoltaic technology on a small scale. Most of the funding available was directed at improving the energy efficiency of appliances and housing. In 2010, the focus has moved on towards larger support for the preferred choice in renewable energy technology, namely photovoltaics, as Malta struggles to work towards achieving its 2020 renewable energy targets. There has been a relatively strong reliance on solar energy, with a very small attempt to introduce wind turbines, the use of biofuels in industry and no use of geothermal energy. While the expectation was that wind energy would play a major part in the national landscape of renewables, technological and regulatory hurdles faced resulted in this technology not featuring on any substantial scale in the residential sector the industrial sector in Malta. The policy in Malta is reflective of EU policy, and justification for intervention in the provision of renewable energy is strong. The implementation of such policy, however, is still in its infancy. Malta obtains ERDF and Cohesion funds under the Convergence Objective, under which it can obtain a maximum EU co-financing rate of 85% of the total eligible cost of projects. This is complemented by national co-financing. Regional differences in such support exist between the two larger islands, Malta (Main Island) and Gozo. However, this is not specific to renewable energy projects but pertains to interventions in general, as the country had at one point committed 10% of EU funding to the island of Gozo. Moreover, Gozo is designated to become an Eco-Island over the next years, with a specific budget line out of national resources devoted specifically to this purpose, which may impact upon rates of support applicable to renewable energy projects in the Island Region. Real estate market differentiation for energy efficient housing is almost non-existent, with very few signs of any references to this in the property market