Wednesday 11 January 2017

EU approves support for Malta’s gas and power project

EU approves support for Malta’s gas and power project

Malta’s plans to pay the operator of a power plant for providing electricity to an energy company has been approved by the European Commission.

The measure compensates Electrogas "for the additional cost of fulfilling public service obligations".

In June last year, Malta notified plans to support the Delimara Gas and Power Energy Project to the Commission for assessment under the EU state aid rules.

Electrogas Malta has a public service obligation to make electricity and gas available to Enemalta and supply electrical energy and gas when dispatched by the company. The support takes the form of payments from Enemalta.

The project comprises the development of a floating liquid natural gas storage unit and a new combined cycle gas fired power plant. The storage unit will supply gas to the new power plant as well as to an existing plant.

It aims to decrease electricity prices, reduce environmental damage from energy production and increase security of supply by diversifying the energy mix.

It will partly replace the existing electricity generation infrastructure in Malta.

Written by

Bruna Pinhoni

Trending Articles