Tough EU energy efficiency targets are business opportunity, report concludes

Businesses have to invest between €30 million and €64 million to meet the 2020 renewable and energy efficiency targets, a report out today has concluded.

The report was compiled by the Malta Business Bureau and released on Friday during a seminar on the EU’s energy targets organised by the Malta Business Bureau.

The costs indicated in the report reflect only the business relevant cost of meeting the 2020 targets.

 It was based on energy audits carried out in compliance with the Energy Efficiency Directive, which requires non-SMEs to carry out audits once every four years. The first audits were completed by December 2015.

The report showed that Malta’s non-SMEs listed 113 individual energy efficiency and renewable measures as having been identified by auditors, costing a combined €6.7 million.

The annual savings resulting from these interventions were estimated at €1 million, offering a return on investment of 15.6%.

The report concluded that industry was keen to take up energy recommendations.

Of the investments, €4.5 million were in renewable energy, mainly rooftop photovoltaic installations and the remaining in energy efficiency measures.

Malta’s largest companies paid an average of €7,580 for an external audit.

Frank V. Farrugia, president of The Malta Chamber, said the 2020 EU targets and the even more ambitious 2030 targets, will create business opportunities for operators.

“We believe that there are considerable opportunities for business involvement in energy, and that a favourable policy environment can be of strategic business value,” he said.

Labour MEP Miriam Dalli also addressed the seminar, highlighting her forthcoming work as the European Parliament’s rapporteur to negotiate a reduction in CO2 emissions from the transport sector.

“I am committed to push forward for more research and investment in new technology to ensure a sustainable and affordable roll out of zero emission vehicles and low emission vehicles. Malta has the potential to be a leader in this regard,” she said.