{"id":142908,"date":"2026-06-11T09:33:29","date_gmt":"2026-06-11T09:33:29","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142908"},"modified":"2026-06-11T11:52:57","modified_gmt":"2026-06-11T11:52:57","slug":"malta-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/malta-renewable-energy\/","title":{"rendered":"Malta: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142908","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-malta"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ganado Advocates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/GA_Logo_Full-Colour.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ganado Advocates<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/GA_Logo_Full-Colour.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Malta<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The current electrical energy mix in Malta (as per 2024 statistics published in October 2025 ) consists of 58.1% local generation from gas-fired plants, 31.1% direct imports over the Malta-Italy Interconnector, and 10.8% (a significant jump from 1.3% in 2013) of generation from local renewable energy sources (mainly consisting of private and commercial land-based photovoltaics (PV) and small-scale rooftop PV installations).<\/p>\n<p>Malta\u2019s biggest challenge is spatial capacity. According to the National Statistics Office (NSO) by the end of 2024, the total renewable kWp amounted to 252,255.4. When compared to 2023, generation of energy from grid-connected PVs saw an increase by 5.8 per cent in 2024, totalling an estimated 326.5 GWh. In recent years significant efforts have been made to increase renewable energy generation, with these efforts being particularly promoted through Government initiatives and incentives, including:<\/p>\n<p>1. The publication of a National Policy for the Deployment of Offshore Renewable Energy in 2024 focused on establishing the Government\u2019s policy for the establishment of offshore floating wind and solar projects to increase percentage of renewable energy. This was followed by the issuance of a Pre-Qualification Questionnaire for a Concession for the Design, Construction, Operation, Maintenance and Decommissioning of an Offshore Floating Wind Farm for Renewable Energy Supply, which was first published in 2024 and which sought to invite interested parties to participate in a floating wind project (having a capacity of 280MW to 320MW) in Malta\u2019s eventual exclusive economic zone. The Ministry For Environment Energy and Public Cleanliness (which in June 2026 became the Ministry for Energy, the Environment and the Regeneration of the Grand Harbour, and hereinafter the \u201cMEE\u201d) received three submissions from both local and international players which continue to be evaluated .<\/p>\n<p>2. In January 2024, the MEE issued a Preliminary Market Consultation (\u201cPMC\u201d) on floating solar farms, to assess the market readiness for nearshore floating solar farms in the Maltese territorial waters. This PMC sought to invite reputable companies to submit proposals for a circa 50MW floating solar technology project to be established in Malta\u2019s territorial waters. A recent consultation paper which has been issued by the Ministry indicates that floating solar technologies still require further development before reaching commercial maturity, and that the Government shall continue working with academia and the industry to accelerate deployment of floating solar technologies, while managing risks, and balancing innovation with financial prudence.<\/p>\n<p>3. The Regulator for Energy and Water Services, on behalf of the MEE, has regularly issued competitive bidding processes for the allocation of financial support for renewable energy production (for projects having a capacity between 40kW up to less than 200kW; between 200kW up to less than 1,000kW; and between 1,000kW and not exceeding 10,000kW. ). The most recent invitations to bid were published in April 2026.<\/p>\n<p>4. In 2024, Interconnect Malta also issued a tender for the design and build of two utility scale battery energy storage systems (BESS) in Malta (one for an 8MW, 20MWh sytem, and another for a 32MW, 63MWh system). The tender is currently in the process of being re-evaluated, following a challenge of the award in accordance with public procurement procedures.<\/p>\n<p>5. The Maltese Government has also allocated over \u20ac15 million for the 2026 Renewable Energy initiatives aimed towards households. This scheme supports, homeowners in installing PV systems and battery storage solutions<\/p>\n<p>6. The Maltese Government also offers attractive feed in tariff schemes to promote renewable energy adoption among households as well as businesses and organisations having a capacity of less than 40KW.<\/p>\n<p>7. In March 2026, the MEE, through Interconnect Malta issued a Preliminary Market Consultation to gather information from the market on the feasibility of large-scale importing of renewable energy from North Africa to Malta via a cable link. The Preliminary Market Consultation covers both the generation and transmission of renewable energy and assesses the project\u2019s feasibility with a two-way Contract for Difference for 25 years. At the time of writing, the deadline for submissions is 31st July 2026.<\/p>\n<p>8. In April 2026 the MEE and the Water Services Corporation (\u201cWSC\u201d) launched a scheme which will allow households which do not have access to a roof to purchase photovoltaic panels installed on the Water Services Corporation\u2019s reservoirs. WSC is a government-owned entity. The initiative will be producing circa 4m KWh in its first year. Investors will be able to sell the electricity generated by the photovoltaic panels that they purchase through a feed-in tariff scheme.<\/p>\n<p>9. Wasteserv Malta Limited, which is also ultimately owned by the Maltese Government has, in 2026, announced its plan to construct an organic waste processing plant which will generate up to 20GWh of renewable energy annually.<\/p>\n<p>10. In 2026 the MEE has also announced plans to build a third interconnector between Malta and Sicily. The link is designed for an initial capacity of 200MW, with the option to expand to 400MW in its second phase \u2013 this may also allow for the further purchase and possibly also the sale of renewable energy to and from the European energy market..<\/p>\n<p>The above projects also fall within a wider framework being promoted by the Government to tackle climate change, which also includes:<\/p>\n<p>&#8211; the promulgation of a Climate Action Act and the establishment of a Climate Action Authority in 2024; and<\/p>\n<p>&#8211; the successful launch of Malta\u2019s first green bond in 2024 by Clearflow Plus plc (a subsidiary of the Government owned Water Services Corporation), the proceeds of which have been earmarked, inter alia, for the establishment of solar farms.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Malta has committed to achieving carbon neutrality by 2050, a target enshrined in law through the EU Climate Law framework, which makes this commitment binding on all EU member states, including Malta. This aligns Malta\u2019s national climate policy with the EU-wide goal of net zero greenhouse gas emissions by 2050.<\/p>\n<p>Interim targets form part of Malta\u2019s National Energy and Climate Plan (NECP) of December 2024, which specifies that Malta should increase its share of renewable energy to 24.5% by 2030. The plan also sets a target to reduce greenhouse gas emissions by at least 19% compared to 2005 levels by 2030, reflecting Malta\u2019s contribution to collective EU commitments under the Paris Agreement.<\/p>\n<p>In addition to legal targets, Malta\u2019s energy policy framework emphasizes energy efficiency improvements, electrification of transport, and reduction of carbon intensity in power generation. These goals are supported by legislative instruments such as the Energy Efficiency Regulations and the promotion of clean technologies through public funding programs.<\/p>\n<p>Additionally, with the establishment of the Malta Climate Action Authority and Malta being a party to the United Nations Framework Convention on Climate Change (UNFCCC) and its protocols and agreements, and in accordance with EU legislation, Malta has the obligation to submit an annual inventory of anthropogenic greenhouse gas emissions by sources and removals by sinks.<\/p>\n<p>The Climate Action Authority is designated by law as the national GHG Inventory Agency for the country, thus being responsible for the annual compilation of Malta\u2019s GHG inventory. The inventory is submitted to the European Commission and to the UNFCCC Secretariat and is subject to separate annual reviews by expert review teams in accordance with EU legislation and with UNFCCC decisions.<\/p>\n<p>The Climate Action Authority\u2019s work in respect of GHG inventories includes deciding on the methodologies for the estimation of emissions and removals, gathering the necessary activity data for all relevant activities, performing the necessary calculations, compiling the results into the approved reporting format and preparing a detailed written report that presents the approaches used for each activity category.<\/p>\n<p>The most recent GHG Inventory for Malta (March 2026 submission covering the time-series 1990-2024), including the written National Inventory Document (NID) may be accessed here: NID_March2026_Final.pdf<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Electricity Regulations (Subsidiary legislation 545.34 of the laws of Malta), define \u201cenergy from renewable sources\u201d or \u201crenewable energy\u201d as \u201cenergy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas, and biogas\u201d.<\/p>\n<p>Similarly, the Feed-in Tariffs Scheme (Electricity Generated from Solar Photovoltaic Installations) Regulations (Subsidiary Legislation 545.27) define \u2018renewable energy sources\u2019 as \u201cnon-fossil energy sources, that is, wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases\u201d.<\/p>\n<p>This is generally in line with the definition of \u2018energy from renewable sources\u2019 or \u2018renewable energy\u2019 under Directive (EU) 2018\/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Ministry for the Environment, Energy and Public Cleanliness (Ministry)<\/p>\n<p>The Energy Ministry is the central governmental authority responsible for shaping Malta\u2019s energy (including renewable energy) policy. The ministry formulates strategy, coordinates the implementation of EU directives, and coordinates funding programs. The Ministry is also heading the implementation of the Malta\u2019s National Energy and Climate Plan. As can also be seen from the above, the MEE has also aimed to kick-start the renewable energy market through the provision of support schemes and also by issuing invitations to tender, pre-qualification questionnaires, and preliminary market consultations with a view to encouraging private investment in the renewable energy market.<\/p>\n<p>The Regulator for Energy and Water Services (REWS)<\/p>\n<p>REWS is the regulator for energy and water services in Malta and is granted a wide array of responsibilities involving the regulation of practices, operations and activities in the energy and water sectors. REWS also administers the feed-in-tariff schemes and the bidding processes for the allocation of feed-in-tariffs, and in 2024 also administered a preliminary market consultation for the floating solar technology in Malta\u2019s territorial waters.<\/p>\n<p>Interconnect Malta<\/p>\n<p>Interconnect Malta is fully owned by the Government of Malta, and has been tasked with developing and administering various infrastructural projects, including Malta\u2019s second and third interconnector to Sicily; a hydrogen ready pipeline; an offshore floating wind renewable energy project, as well as battery energy storage systems (BESS). Interconnect Malta is also administering the Preliminary Market Consultation which has been issued and which seeks to consider the importation of renewable energy from North Africa to Malta via a cable link.<\/p>\n<p>Water Services Corporation<\/p>\n<p>Water Services Corporation is the Government utility company which is responsible for operating and maintaining the water, drainage, and secondary water networks in Malta. This Corporation has however promoted the issuance of Malta\u2019s first green bond through its subsidiary entity Clearflow Plus plc, the proceeds of which will inter alia be used for the carrying out of certain investments in renewable energy projects.<\/p>\n<p>The Environment and Resources Authority (ERA)<\/p>\n<p>ERA manages environmental permitting and assessments, critical for renewable project approvals, ensuring sustainable development and environmental protection. It is Malta\u2019s main environmental regulatory authority responsible for safeguarding environmental protection and quality. In terms of renewable projects, ERA is tasked with carrying out Environmental Impact Assessments, particularly with respect to marine, land and environmental aspects.<\/p>\n<p>The Malta Climate Action Authority (MCA)<\/p>\n<p>The Climate Action Authority was established in 2024 and is responsible for inter alia, implementation of strategy and study of matters related to climate change; the coordination and issuance of climate related polices in alignment of EU climate targets; the EU ETS Scheme; and the Carbon Border Adjustment Mechanism.<\/p>\n<p>Wasteserv Malta Limited<\/p>\n<p>Wasteserv Malta Limited is a Government owned company and was established in November 2002. WasteServ Malta Limited operates Malta&#8217;s organic waste processing facilities at Mag\u0127tab, using anaerobic digestion to convert organic waste into biogas for renewable electricity generation (currently producing 8.5 GWh annually), and is seeking to increase renewable electricity output to 20 GWh\/year by 2028.<\/p>\n<p>The Private Sector<\/p>\n<p>The Maltese private sector is actively contributing to the country\u2019s renewable energy transition through various initiatives in solar energy, energy storage and international collaborations. The majority of the private sector is concentrated in the installation and operation of PV systems. These range from small scale roof top systems on residential and commercial buildings to larger ground mounted solar farms. There is currently an active eco-system of investors in onshore renewable energy production, albeit that these are restricted by very limited availability of land. We are also experiencing an increase in international collaborations mostly as a response to the Government bids and tenders relating to renewable energy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most popular approach for businesses to access renewable energy in Malta remains the installation of solar panels on their rooftops. These solutions are popular given the established frameworks and the availability of feed-in-tariffs, together with the relative ease in installing solar panels and their scalability. Businesses are also drawn towards this solution in accessing renewable energy as it can translate into a direct reduction in the businesses\u2019 energy costs.<\/p>\n<p>A number of businesses have also taken up initiatives to electrify their commercial vehicles. These include a significant uptake in the use of electric vehicles as well the installation of EV charging stations on their premises. It is expected that businesses will continue this uptake of electric vehicles particularly in view of Malta\u2019s obligations at EU level and the proliferation of charging stations in Malta.<\/p>\n<p>Due to derogations which Malta has from the EU Electricity Directive (Directive (EU) 2019\/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012\/27\/EU (recast)), the sole distribution system operator in Malta is Enemalta plc. Since over the past years there has been a low threshold of electricity generated from renewable energy sources, and since there has been very limited use of guarantees of origin or renewable energy certificates, there has not yet been the development of the purchasing of green power from a supplier, or having direct corporate PPAs with Enemalta plc.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, over the last 12 months, there has been a noticeable shift in how Maltese businesses engage with renewable energy, driven by multiple converging factors.<\/p>\n<p>As a result of the of the EU\u2019s legislative package on Environmental, Social, and Governance (ESG), primarily the EU\u2019s Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy regulations, investments in renewables as part of the carbon reduction commitments of companies with international ties or listed entities has accelerated and has intensified pressure for transparency and measurable green investments.<\/p>\n<p>Global energy market volatility, particularly the increase in natural gas prices following geopolitical tensions (notably the Russia-Ukraine conflict and the conflict in the Middle East), has pushed Maltese businesses to seek energy cost mitigation through renewables notwithstanding the stabilisation of energy prices in Malta through Government subsidies. Solar PV and energy storage have become increasingly attractive for their predictable cost structures in juxtaposition with the improved Government schemes available to the public and private sectors. The constant energy security crisis together with inflation and increased costs of capital and supply chain continue to pose huge challenges for large scale investments.<\/p>\n<p>The key developments which have taken place in the renewable energy sector over the past 12 months have been specifically identified in our replies to Question 1 above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Discussions around carbon emissions reduction have become significantly more visible and mature in Malta\u2019s business community, particularly among medium and large enterprises. The increasing integration of carbon reduction strategies and climate risk assessments into corporate strategy and investment planning reflects heightened awareness is evident, with steady government backing through policy and financial incentives. Malta Enterprise (Malta\u2019s economic development agency, tasked with attracting new foreign direct investment as well as facilitating the growth of existing operations), offers a multitude of support schemes which include green mobility and smart and sustainable investment grants which provide funding to support investments that lead to more sustainable processes.<\/p>\n<p>Principally, the EU\u2019s shift from soft laws to hard laws of the past decade have contributed substantially to the maturity of discussions and policy making. Energy efficiency has also become a core topic, especially given Malta\u2019s energy import dependence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A new generation capacity will require an authorisation from the Regulator for Energy and Water Services in accordance with the Electricity Regulations (irrespective of the type of energy being generated). Exemptions apply in de minimis scenarios, which consist of producers which:<\/p>\n<p>&#8211; (a) produce electricity solely for own use, are not connected in parallel to the distribution system and have installed a total peak generation capacity of less than 1500 kVA; or<\/p>\n<p>&#8211; (b) produces a total peak generation capacity rated up to and including 16 Amps per phase, single-phase or multi-phase, 230\/400V AC produced solely from renewable sources of energy or cogeneration plant (though a notification requirement to the Regulator would still apply here).<\/p>\n<p>Energy storage facilities do not require an authorisation from the Regulator for Energy and Water Services, though they are to be notified to the Regulator, and are still subject to certain regulatory requirements.<\/p>\n<p>The transfer of any licence would also require the approval of the Regulator for Energy and Water Services, and the same criteria which needs to be met for obtaining a licence would also need to be satisfied by a transferee of a licence for the Regulator to grant its approval to a transfer.<\/p>\n<p>Other permits, licences or consents may also be required depending on the specific type of project with these other permits, licences or consents possibly consisting of:<\/p>\n<p>&#8211; Development and environmental permits;<br \/>\n&#8211; Grid Connection consents;<br \/>\n&#8211; The granting of certain rights over property;<br \/>\n&#8211; Licences for certain activities to be carried out on Malta\u2019s continental shelf\/ exclusive economic zone (for offshore projects).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As seen in our above replies, the Government (and Government companies or entities) are key players in the renewables industry, and they are seeking to drive the renewables industry in Malta both through actual investment as well as through the provision of incentives to the private sector.<\/p>\n<p>Enemalta plc, which is the sole distribution system operator in Malta, benefits from derogations from EU law which also allow it to participate in generation activities and has also been active in the renewables sector. Interconnect Malta has also been spearheading other projects as described above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Maltese Government has a clear decarbonisation strategy which mainly focuses on the development of the renewables industry.\u00a0 As seen in our above replies:<\/p>\n<ul>\n<li>The Government has, for several years, granted incentives for solar projects to be installed by households and commercial entities in small scale\/ rooftop projects, and has also granted financial support through competitive bidding processes for larger solar farms;<\/li>\n<li>Given the spatial limitations in Malta, the Government has amended various laws to cater for the possibility of introducing floating wind structures in Malta\u2019s eventual exclusive economic zone;<\/li>\n<li>The Government and the Regulator for Energy and Water Services have been exploring the possibility of floating solar panels being installed in Malta\u2019s territorial waters;<\/li>\n<li>The Government is exploring the possibility of a cable pipeline being installed between North Africa and Malta for the generation and transmission of renewable energy. Coupled with the eventual introduction of a third Malta-Sicily interconnector, Malta can also act as a bridge between Europe and North Africa through which renewable energy can be purchased and sold between two different continents (Europe and Africa);<\/li>\n<li>In 2024, the Climate Action Act was enacted which also established the Climate Action Authority which is tasked with dealing with climate change related matters.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government has launched a number of incentive schemes which are aimed at promoting renewable energy. These incentive schemes are offered on both a commercial and residential basis.<\/p>\n<p>These incentives include subsidies for photovoltaics (PV) panels for both residential and non-residential units aimed at helping applicants with the initial investment costs as well as the possibility of acquiring photovoltaics (PV) panels installed on property owned by government entities. Incentive schemes are also separately in place which subsidise the purchase of both hybrid and battery invertors, however these schemes are only open for residential units or organisations which are not engaged in an economic activity.<\/p>\n<p>The Government also offers feed-in tariff schemes for electricity generated by PV installations which do not exceed 40KW. The feed-in tariff is paid per KwH of energy that is generated and subsequently exported to the grid. Electricity producers which avail of this scheme can either opt to sell all the electricity that they produce or consume the electricity produced first and export any excess electricity that is not required for their internal consumption.<\/p>\n<p>Contracts for difference are also offered for renewable energy projects which exceed 40KW, 200KW, and 1MW, though these are allocated through competitive bidding processes.<\/p>\n<p>Furthermore, the Pre-Qualification Questionnaire for a Concession for the Design, Construction, Operation, Maintenance and Decommissioning of an Offshore Floating Wind Farm for Renewable Energy Supply which was issued in 2024, , also considers that the eventual contract with the preferred bidder will include a contract for difference.<\/p>\n<p>The Preliminary Market Consultation on the feasibility of a large-scale importing of renewable energy from North Africa to Malta via a cable link also contemplates that the eventual contract will include a 25 year contract for difference.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Though Malta is exposed to the fluctuation in energy prices, including the impact of high gas prices on electricity price formation (whereby natural gas remains, in most cases, the marginal price-setting technology in electricity markets across Europe), the Maltese Government has over several months recognised the importance of electricity price stability and has cushioned the Maltese economy from higher electricity prices through the provision of subsidies. Following developments in the international fuel markets as a result of the Middle East crisis, the Maltese Government has confirmed that these subsidies will remain in place for the foreseeable future.<\/p>\n<p>We are not aware of any plans to de-link the price of renewable electricity from gas prices.<\/p>\n<p>There are no active coal plants operating in Malta. In 2017 Malta had also transitioned its main power plants from heavy fuel oil (HFO) to liquefied natural gas (LNG).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Though there are various incentives promoting renewable energy projects in Malta, the main barrier which limits investment in this sector is the limitation of space in Malta where these projects (particularly larger projects) may be deployed.<\/p>\n<p>It is for this reason that the Government is now also looking towards projects in Malta\u2019s territorial waters and even in areas which may be declared to be Malta\u2019s exclusive economic zone. It is also the reason why Government entities (such as the Water Services Corporation), are also allowing households to participate in investing in the installation of photovoltaic panels (as explained in further detail above).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The key contracts which will be entered into will depend on whether the relevant projects form part of a particular competitive bidding process or otherwise.<\/p>\n<p>Since most current (and envisaged) projects follow a competitive bidding process, the main documents would typically consist of a Contract for Differences to be entered into with the Government, a concession contract, and agreements with the distribution system operator to cater for the electrical connection (depending on the size of the project).<\/p>\n<p>In certain instances, a power purchase agreement may also be entered into particularly where no Contract for Differences is entered into.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Malta\u2019s small grid and isolated electricity system means there is currently no capacity for exporting renewable electricity abroad. Hence, there are no specific export restrictions on renewable energy, but practical export is not feasible.<\/p>\n<p>There are no formal legal requirements mandating minimum local content in renewable energy projects. However, government policy encourages local employment and participation through procurement preferences and capacity-building initiatives.<\/p>\n<p>Malta has no specific domestic supply obligations for renewable energy technology or equipment.<\/p>\n<p>With reference to the EU Net Zero Industry Act (Regulation 2024\/1735) \u2013 we expect a limited impact on this given Malta\u2019s small industrial base.\u00a0 Malta will however need to align its national policies with the requirements of this regulation. We also do not expect any relevant impact of the \u201cforeign entity of concern\u201d regulations in the US on local players in the renewable energy market.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Since renewable energy projects in Malta are usually relatively small in nature (in light of the geographical limitations of Malta) and given the interest in investing in renewable energy projects, there have not been any significant non-country specific factors which have impacted the deployment of renewable projects in Malta.\u00a0 Rather, the recent international developments have encouraged the Maltese Government to explore, and seek to incentivise, further investments in local renewable energy projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Refer to our replies in Question 1 and 2.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The larger renewable energy projects in Malta are still at tendering\/ consultation phases, and one cannot therefore comment much on the business models and the applicable financing structures. Nevertheless, discussions on deploying BESS systems in any renewable energy project are becoming ever-more present, as this would give the project further stability and certainty, which further helps any financing structure.<\/p>\n<p>The BESS systems which are currently being looked into are mainly focused on helping grid stability (and are therefore standalone in nature), but one would expect any new renewable energy project of a certain size to be complemented also by BESS structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Given the spatial limitations which exist in Malta, major projects are driven by the MEE, which either acts through Infrastructure Malta to develop and operate projects, or alternatively issues invitations to tender, preliminary market consultations, pre-qualification questionnaires, or expressions of interest for private parties to participate in renewable energy projects (such as offshore wind projects). Renewable energy projects may also benefit from state aid which may be essential for their feasibility.<\/p>\n<p>Though, as explained above, the MEE is seeking to create a framework for the development of a major offshore wind project, it appears to be adopting a cautious approach to ensure that an eventual concessionaire will have the necessary skill, competence, and financial backing to deliver the envisaged project\/s. Some regulatory uncertainty does exist in relation to (i) the applicability of certain laws to Malta\u2019s Exclusive Economic Zone (which is the area in which offshore wind projects are being considered); (ii) the lack of any developed laws on electricity transmission and regulation of transmission system operators; and (iii) on what type of security interests a potential financing party may take on an offshore wind farm. The fact that Malta is not connected to a wholesale electricity market may also hinder the development of similar projects.<\/p>\n<p>With regards to hydrogen, the key requirement is not merely policy ambition but also a build-up of a legal and physical ecosystem needed to support production, transport and use of hydrogen. In this respect, the planned Melita TransGas Hydrogen ready Pipeline between Malta and Gela is potentially significant, because it is designed to be capable of transporting hydrogen and has retained PCI status at EU level. Nevertheless, given Malta\u2019s limitations in producing renewable energy to-date, it is not expected that green hydrogen production will be taking place in Malta in the short to medium term.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To-date most projects have been limited in size given Malta\u2019s spatial limitations. Renewable projects are consequently typically financed through private investment, and\/ or through bank financing.<\/p>\n<p>Moreover, and this in addition to our replies to Question 2 and 5, there is an increased desire for local and foreign companies to set up joint ventures for the investment in and operation of large scale projects, which we believe will spill over into projects outside of Malta (particularly in the Mediterranean region).<\/p>\n<p>Although not utilised in great number, there have also been instances of financing though the capital markets. In support of Malta\u2019s and the European Union\u2019s commitments to the promotion of sustainable finance and investments, the Malta Stock Exchange together with the the Malta Financial Services Authority approved the establishment of an MSE Green Market. The Green Market serves as the listing platform of Green Bonds on the local capital markets. Issuers seeking to raise finance for green projects must meet the MSE\u2019s Green List criteria (based on the International Capital Markets Association\u2019s Green Bond Principles). Issuers meeting these requirements will qualify for discounted listing fees.<\/p>\n<p>Qualifying issuers would need to invest in projects that contribute towards one of the environmental objectives inter alia: Climate Change Mitigation, Climate Change Adaptation, Pollution Prevention, Sustainable Use of Water and Marine Resources.<\/p>\n<p>Malta\u2019s first green bond was a \u20ac25 million bond issued in 2023 by ClearFlowPlus plc, a subsidiary of the Water Services Corporation, where portions of the raised capital was to be used for, inter alia, investment in: the development of solar farms; a new reverse osmosis plant; and wastewater treatment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Due to Malta\u2019s spatial limitations, both the construction and operating of data centres within the jurisdiction has thus not been significant when compared to other jurisdictions.\u00a0 There is no evidence to suggest that data centres have had any impact on the electricity prices for consumers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5595<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}