COMMISSION STAFF WORKING DOCUMENT Country Factsheet Malta Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Malta, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 233 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Malta Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  State of the Energy Union  {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 217 à 232} {SWD(2015) 234 à 243}  
 
 
Towards an Energy Union  
           Malta 

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

The  share  pf  energy  in  total  employment  has  been  considerably  higher  than  the  EU  average,  but 
much less so in 2012 than 2005 which may for a part reflect restructuring in the sector. 

Source: EUROSTAT – National Accounts for EU27 – Malta NSO: Total gainful occupations* 

According to EurObserv'ER, in 2013, the share 
indirect  renewable  energy 
of  direct  and 
related  employment  in  total  employment  of 
the  economy  in  Malta  was  estimated  to  be 
about 0.06%, below the EU average of 0.53%. 

Limited  resources  and  the  small  size  of  the 
market do not incentivize certain investments 
such as the production of photovoltaic panels.   

Source: European Commission, based on EurObserv'ER and 
EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

The  almost  full  dependency  on  imported  oil  products  translates  into  one  of  the  largest  energy  trade 
deficits in the EU in GDP terms. It has also strongly increased over the period under consideration, but 
since 2005 the very large current account deficit has turned into a modest surplus in 2014. As a result of 
the investments in the generation and distribution sectors, the efficiency in the use of primary energy is 
expected  to  increase  significantly  which  will  reduce  the  demand  for  imports  of  energy  products.  The 
statistics of the trade balance of energy products for Malta are volatile over time depending on stock 
and valuation movements. The trend to a more balanced energy mix (such as through a higher share of 
renewable energy and the electricity interconnector) will most likely reduce this volatility. 

0.00.20.40.60.81.01.220052012MTEU27Employment in energy sector% of total employment* 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Malta 

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The  energy  mix  of  Malta  differs  totally  from  the  one  of  the  EU-28  due  to  a  quasi-exclusive  use  of 
petroleum  products.  Therefore,  Malta  has  focused  its  efforts  on  reforming  the  energy  sector  to 
diversify  the  energy  mix.  These  measures  are  expected  to  bring  an  end  to  the oil  dependency  of  the 
electricity sector, although import dependency will remain high (for gas and electricity).  

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

Malta  has  a  fuel  import  dependency  ratio1 of  practically  100%.  There  is  no  data  on  the  main  trading 
partners of Malta regarding petroleum products. No gas is used in the energy mix.   

1   Note: A dependency rate in excess of 100% indicates that energy products have been stocked. 

2 

-10-505MTEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2006 -10-505MTEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Malta 

Source: European Commission, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

The  commissioning  of  the  electricity  interconnector 
between Malta and Italy on 9 April 2015 (supported by 
the European Energy Programme for Recovery) marked 
an  end  to  the  isolation  of  the  Maltese  distribution 
network  from  the  rest  of  Europe.  As  a  result,  Malta's 
electricity  interconnection  capacity  increased  from  0% 
to  approximately  35%.2 In  addition,  a  new  gas-fired 
CCGT  power  plant  and  a  Liquified  Natural  Gas  facility 
(LNG)  are  being  built.  In  addition,  the  existing  power 
plant will be converted to run on natural gas once the 
new LNG facilities are built.   
Malta is involved in one Project of Common Interest (in 
gas): connection of Malta to the European Gas network 
(gas  pipeline  with  Italy  at  Gela  and  Floating  LNG 
Storage and Regasification Unit). 

Source:  European  Commission  based  on  ENTSO-E  scenario 
outlook and adequacy forecast 2014 
Note:  Reference  to  2030  target  is  based  on  October 
2014  European  Council  conclusions  stating  that  "the 
Commission  will  also  report  regularly  to  the  European 
Council with the objective of arriving at a 15% target by 
2030" 

2  

The graph reflects the situation in 2014 and therefore the increase of the interconnection level is not yet reflected. 

3 

Top non-EU gas suppliers in 2013 (% in total imports)MaltaEuropean Union country[%]country[%]Russia39.0Norway29.5Algeria9.7Qatar6.7100%104%100%105%0%0%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasMTEU28Import dependency 2013 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Malta 

ELECTRICITY AND GAS MARKETS 

Market concentration index for power generation (left) 
and gas supply (right) (2013) (Herfindahl index – 10000 
means monopoly) 

Sources: European Commission based on ESTAT, CEER and Platts 
Power Vision 

Sources:ESTAT and European Commission Calculations 

Enemalta  PLC  has  a  legal  monopoly  in 
electricity  supply  and  is  currently  the 
main  producer  of  electricity  in  Malta. 
is  open  to 
The  generation  sector 
competition  but  market 
size  had 
restrained  development  until  very 
recently  with  two  major  private  energy 
generators as well as a number of small 
renewable  energy  suppliers  entering 
the  market.    Dispatch  and  balancing  is 
carried out by Enemalta plc. 
The  electricity  retail  sector  is  not  open 
to  competition  and  therefore  customer 
switching  is  not  possible  in  Malta  (the 
physical and structural constraints are a 
barrier  to  an  effective  market).  The 
Electricity  Market  Regulations  have  to 
be  seen  in  the  light  of  the  derogations 
granted to Malta by virtue of Article 44 
of  Directive  2009/72/EC 
the 
requirements  of  Articles  9,  26,  32  and 
33 of this directive. 
All  consumers  of  electricity  are  on 
regulated  retail  tariffs.  In  2014,  retail 
electricity  prices  for  households  were 
below 
The 
assessment  of  the  retail  electricity 
market  expressed  by  consumers  in  an 
EU-wide  survey 
is  well  above  EU 
average3.  
Malta 
smart meter roll out.  

is  proceeding  with  electricity 

European 

average. 

from 

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

Despite  Malta's  almost  complete  dependency  on  imported  oil  products,  neither  overall  inflation 
nor the contribution of energy prices to inflation appears much more volatile than their Euro area 
counterparts.  The  import  price  hedging  arrangement  in  the  sector  may  have  had  an  important 
stabilising impact on prices. 

3  
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/index_en.htm 

10th Consumer Markets Scoreboard (June 2014),   

4 

 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Malta 

Source: DG ECFIN based on Eurostat 

VULNERABLE CONSUMERS 

Based  on  a  EUROSTAT  survey  on 
income  and  living  conditions,  three 
proxy  indicators  are  used  to  assess 
fuel poverty. They indicate a relatively 
relevant  issue  for  Malta.  Vulnerable 
consumers  may  benefit  from  energy 
bill  discounts.  During  2013,  26.703 
consumers  received  energy  benefits 
(Source  National  Statistical  Office). 
12%  of  household  consumers  were 
defined  as  consumers  with  special 
needs. 

 Source: European Commission, based on on EUROSTAT SILC survey 

3. Energy Efficiency and moderation of energy demand 

ENERGY EFFICIENCY TARGET 2020  
(0.726 Mtoe primary energy and 0.547 Mtoe final energy) 

for  2020  expressed 

Malta’s  2020  energy  efficiency  target  was 
lowered  this  year  from  0.825  Mtoe  to  0.726 
Mtoe  expressed  in  primary  energy  consumption 
as  the  Maltese  authorities  plan  to 
increase 
generation  efficiency  in  the  coming  years.  The 
target 
in  final  energy 
consumption was increased from 0.493  Mtoe to 
0.547  Mtoe  due  to  economic  growth,  which 
means  that  the  target  became  less  ambitious. 
Malta would need to increase its current efforts, 
in  line  with  its  National  Energy  Efficiency  Action 
Plan,  regarding  energy  efficiency  to  reach  its 
2020 
energy 
target 
consumption.  

expressed 

final 

in 

 Source:  European  Commission,  based  on  EUROSTAT  and  on 
national  energy  efficiency  targets  as  declared  by  the  MS  under  the 

EED 

Primary  energy  intensity  in  Malta  has  decreased  since  2005  at  a  faster  pace  than  for  the  EU  as  a 
whole, and is now lower than EU average. Energy consumption in industry, when reported to  gross 

ENERGY INTENSITY 

5 

-2024620052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsMalta : Price evolution & the contribution of energy prices-2024620052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEA : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Malta 

value added of the sector, is lower in Malta than for the EU as a whole, and could be explained by 
sectoral specialisation. 

Primary energy intensity of the economy    

Final energy intensity in industry 

Source: European Commission based on  EUROSTAT and European 

Commission/AMECO 

Source: European Commission based on  EUROSTAT and European 
Commission/AMECO 

Specific energy consumption by households is  way below EU average. The specific energy intensity 
of passenger cars increased since 2005, and is now above EU average  (since Malta is a small island, 
the models used to calculate EU energy intensity are at their limits of accuracy and should therefore be 
interpreted with caution).  

Final  energy  consumption  per  m2 
residential sector, climate corrected 

in 

Specific energy intensity for passenger cars and freight 
transport4  

Source: European Commission based on  Odyssee 

database 

Source:  PRIMES  model  background  data  and  estimations  based  on  EU 
Commission  and  EU  MS  inputs.  Results  to  be  interpreted  with  caution  due  to 
Malta's geographical characteristics.   

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27. 

4  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Malta 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 
82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. In Malta, 
freight and passenger transport is completely based on road, as there is no rail infrastructure. 

Modal share Malta 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(+5% by 2020 as compared to 2005 in the non-ETS sector) 

Emissions have decreased by approximately 
2%  between  2005  and  2014  approximated 
data. 
According  to  its  2015  projections,  Malta  is 
on  track  to  reach 
its  greenhouse  gas 
emission reduction target for 2020.   

Source:  European  Commission    based  on  EEA.  Based  on  preliminary 
inventory data 

ESD (Effort Sharing Decision) emissions are the emissions from sectors not 

covered by the EU ETS. 

-2% 
The  projections,  submitted  by  the  Member  States,  undergo 
a  QA/QC  (quality  assurance/  quality  control)  process  to  fill 
any gaps and to align the projections with historic data. 

+6% 

Emissions 

Non-ETS 
(vs. 2005) 
Projections with 
existing measures 
2020 
Proxy 2014 

Projections/proxy 

target 

-16% 

+5% 

RENEWABLE ENERGY SHARE TARGET 2020 (10%) 

renewable  energy 

renewables  deployment 

share  has 
Malta's 
recently  increased,  reaching  3.8%  in  2013, 
above the indicative trajectory towards the 
2020  renewable  energy  targets.    However, 
is 
significant 
needed  in  view  of  the  steeper  trajectory 
towards  2020.  Use  of  the  cooperation 
mechanisms  with  other  Member  States 
facilitate  the 
could  be  considered  to 
achievement  of  the  renewable  energy 
target. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Malta 

Source: European Commission based on  EUROSTAT 

8 

 
 
 
Towards an Energy Union - Malta 

GREENHOUSE GAS EMISSION INDICATORS 

 

 

In  Malta  the  Energy  sector  contributes  to  65%  of  the  total  emissions,  a  share  that  is  well 
above  the  EU  average.  This  is  due  to  the  99%  share  of  petroleum  in  the  energy  mix.  It  is 
projected that total GHG  emissions are expected to fall by around 40% by  2016 relative to 
2013, with the power generation sector share dropping to around 44% of the total emissions 
as from 2016 onwards (Source: Policies and Measures (PAMS) Malta 2015).   
In  2014  the  revenues  from  the  auctioning  of  ETS  allowances  amounted  to  EUR  3.9  million, 
which are used or planned to be used for energy and climate-related purposes, mainly in the 
renewables sector.    

Largest Sectors of GHG 
Emissions in 2012 (*) 

Energy/power industry  

Transport 

Industry  

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste & others 

Malta 

EU 
Average 

65% 

18% 

8% 

3% 

4% 

2% 

33% 

20% 

19% 

12% 

13% 

3% 

GHG Emissions 

Malta 

EU 

EU ETS auctioning revenues 
in 2014(EUR millions) 

Share of ETS emissions in 
2013 

GHG emissions/capita in 
2013 (tCO2equivalent) 
Carbon intensity of 
economy in 2013 
(tCO2equivalent/EUR 
millions) 

3.9 

3205 

61% 

42% 

6.6 

8.9 

391 

346 

Source: European Commission  based on EEA 

(*)Sectoral breakdown for 2013 data not available. 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Malta allocates a very low share of its public support to R&D to the field of sustainable energy, low-
carbon and environment.  

Source: European Commission based on  EUROSTAT   

9 

 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Malta 

COMPETITIVENESS 

Real unit energy costs (% of value added) 

The  real  unit  energy  costs5 in  Malta  are  lower 
than the EU average and have risen so that it is in 
line with the US level, but no data is available to 
explain  the  decomposition  of  this 
indicator 
between energy intensity and energy prices. 
Electricity  prices  paid  by  industrial  customers  in 
Malta  are  among  the  highest  in  the  EU,  well 
above  EU  average  and  the  price  paid  by  most 
non-EU  trade  partners.  However,  energy  prices 
for  the  commercial  and  industrial  sector  have 
since been revised downward. 

Source: European Commission 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG-TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

  Malta has not yet established a medium-to-long term strategy on energy and climate 
covering  the  period  beyond  2020,  and  no  specific  targets  for  2030  have  been  set. 
Current  climate-related  measures  are  outlined  in  the  "National  Strategy  for  Policy 
and  Abatement  Measures  Relating  to  the  Reduction  of  Greenhouse  Gas  Emissions" 
published in 2009 covering until 2020. 

  On 7 July 2015 Malta enacted Act No. VVII of 2015 entitled the Climate Action Act to 

streamline the country's commitments on climate change.  

  Malta is preparing a national low-carbon development strategy. In addition, various 
sectorial  studies  and  strategies  are  being  developed,  such  as  the  "Energy  Roadmap 
2050 study on the decarbonisation of the energy sector by 2050", and the National 
Transport Strategy (which has a long range timeline with trends up to 2050).    

5  

This indicator measures the amount of money spent on energy sources needed to obtain one unit of value added. 

10 

5.19.58.28.713.28.88.713.78.00246810121416MTEU27US200020092011 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Malta 

NATIONAL TARGETS, especially for 2030 

Comments 

Objective, 2030-2050 
GHG reduction  
Renewable energy  
Energy  Efficiency  / 
savings 

Targets 
No 
No 
No 

7. Regional Cooperation 

Regional  cooperation  on  infrastructure  development  is  necessary  to  optimise  the  identification  of 
regional infrastructure priorities and to coordinate cross-border investments. Malta is a member of 
two  Regional  Groups  established  under  the  TEN-E  Regulation:  North-South  electricity  and  gas 
interconnections in Western Europe.         

8. Cohesion policy contribution  

The EU Cohesion policy provides for important investment possibilities to implement energy policy 
objectives in Malta which will be complemented by national public and private co-financing, aiming 
at  optimal  leverage.  It  also  ensures  integrated  territorial  solutions  to  challenges  by  supporting 
capacity building, technical assistance and territorial cooperation. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  15  million  in  energy 
efficiency  improvements  in  public  and  residential  buildings  and  in  enterprises  in  Malta.  These 
investments are expected to contribute to a decrease of around 170 000 kWh per year of decreased 
primary energy consumption of public buildings. A further estimated EUR 52 million will be invested 
in transport, of which EUR 28 million will be used to support the move towards an energy-efficient, 
decarbonised transport sector.  

Decarbonisation: Overall, the EU Cohesion Policy investments in Malta over 2014-2020 are expected 
to  contribute  to  an  estimated  annual  decrease  of  GHG  of  around  68  000  tonnes  of  CO2eq.  Over 
2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  31  million  in  renewable  energy  (solar)  in  in 
public  and  residential  buildings  and  in  enterprises  in  Malta.  These  investments  are  expected  to 
contribute to around 80 MW of additional capacity of renewable energy production. 

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly in R&I and in SME competitiveness in Malta. This will be based on the national strategy 
for smart specialisation. For Malta, the strategy includes seven areas of specialisation, plus ICT as a 
horizontal  enabler.  One  of  the  seven  areas  targets  resource  efficient  buildings,  aiming  to  develop 
solutions  for  improved  resource  efficiency  in  new  and  existing  buildings  through,  inter  alia, 
demonstration  projects  and  optimisation  of  building  design.  At  this  stage,  the  allocations  foreseen 
for  investments  in  R&I  and  adoption  of  low-carbon  technologies  in  Malta  are  not  specified,  but 
should become available in line with the evolving content of the smart specialisation strategy. 

11