Energy stability in an uncertain world

Living on an island can sometimes create the impression that we are somehow cut off from global developments. But geography does not protect us from what is happening around us.

In recent years, the world has faced a series of crises. First came the COVID-19 pandemic, which disrupted global supply chains and economic stability. Soon after, Russia’s invasion of Ukraine reshaped energy markets across Europe. Tensions in the Middle East further muddied the waters and since a fortnight ago, we've seen how the Iran war is making global energy markets more volatile.

As energy minister, it is pertinent that these developments are constantly monitored since they shape national decisions. Our responsibility is to protect Malta’s people and economy from external shocks while preparing for the future.

Despite this turbulent international context, I can confidently say that Malta stands in a strong and stable position. While energy prices have increased sharply in many countries, families and businesses in Malta have continued to benefit from stable electricity and fuel prices. But this stability did not happen by chance; nor should it be taken for granted. It is the result of careful planning, prudent financial management, and a clear political commitment to shield people from pressures originating elsewhere.

Government has acted to ensure energy remains both affordable and reliable. We’ve employed various strategies such as hedging and prudent financial oversight. This reliability is crucial for families and businesses.

At the same time, it is important to remain realistic, because Malta does not exist in a bubble. 

But resilience is not built by government alone. Responsible energy use remains essential, and while the stability we provide offers peace of mind, it should never lead to complacency. Avoiding waste and using energy responsibly strengthens the resilience of our country. When households and businesses use energy wisely, they contribute to a system that remains sustainable for all.

A key lesson in recent years is that secure energy supply is vital, especially for an island nation. Our strategy therefore focuses not only on stable prices but also on stronger infrastructure and diversified energy sources.

Significant investments are underway to reinforce Malta’s energy system. One of the largest projects is the second electricity interconnector between Malta and Sicily, an investment of around €300 million. This second link will strengthen Malta’s energy security and resilience of the national grid.

Over the next three years, we will invest in battery energy storage systems to integrate more renewable energy, maintain grid stability, and support households generating electricity with photovoltaic panels.

Infrastructure investment has also accelerated to strengthen the distribution network. After the 2023 heatwave, we launched a €150 million programme to modernise and expand the electricity grid. As a result, 154 new substations have been commissioned, 208 modernised, and over 240 kilometres of medium-voltage underground cables installed to strengthen reliability and reduce vulnerability.

At the same time, Malta is continuing to diversify its energy mix. Reducing dependence on imported fuels is essential. This is why government continues expanding renewable energy and investing in efficiency. Malta’s first offshore wind project, launched through a call for proposals, could generate around 300 megawatts. If feasible, offshore wind has the potential to become a major pillar of Malta’s future energy system, providing domestically-generated electricity thus strengthening the country’s energy independence.

All this forms part of a broader national vision extending to 2050 and beyond. Government’s strategy is to ensure that Malta continues to provide the infrastructure and services that our people deserve. In an uncertain world, our stability reflects long-term and responsible planning.

We will confront global challenges with assurance, building upon our strong base, and persist in securing a brighter future for the Maltese people.