Dalli announces third interconnector between Malta and Sicily

The government has announced plans for a third electricity interconnector between Malta and Sicily, as part of its national energy document that is being published this week for public consultation during the electoral campaign.

The third interconnector, known as IC3, will differ from the two existing and planned links. According to the consultation document titled ‘Malta’s Energy Shift: A Sustainable Power Transition,’ the IC3 will connect to Sicily’s 380kV transmission circuit rather than the 220kV grid used by IC1 and IC2, connecting at a different location, which was highlighted as a way to diversify Malta’s transmission sources and reduce vulnerability to disruptions.

The link is designed for an initial capacity of 200MW, with the option to expand to 400MW in a second phase without the need for entirely new infrastructure.

It will also be capable of operating in both directions, allowing Malta to import when needed and, where market conditions allow, export renewable power to the European grid.

Road to decarbonisation of the power sector from the public consultation document Malta’s Energy Shift: A Sustainable Power Transition.'

IC3 was included in the 2026 ENTSO-E Ten-Year Network Development Plan, a significant step towards securing its designation as a Project of Common Interest, thereby making it eligible for EU funding.

Technical and environmental studies are expected to be carried out in both Malta and Italy, covering marine and onshore surveys to determine cable routing and converter station locations.

The project is being led by Interconnect Malta.

Speaking at a conference on Thursday in Rabat, Prime Minister Robert Abela said the energy sector had been the foundation of the government’s work since 2013. “Back then, we made the first switch away from the most polluting heavy fuel oil to gas and began the first interconnector project. We also launched strong schemes in favour of greater use of renewables. Changes that strengthened our economy while greatly improving air quality and the lives of our families," he said.

Prime Minister Robert Abela

He said it is time to make a leap to the next level with a more diversified and clean sector to ensure efficiency and security.

The consultation document, titled Malta’s Energy Shift: A Sustainable Power Transition, sets out the government’s vision across five pillars: affordability, security of supply, sustainability, diversification, and a consumer-centred approach.

It is intended to advance Malta’s shift away from carbon dependence while keeping energy prices stable for households and businesses, and aligns with European targets under the Green Deal, Fit-for-55 and REPowerEU.

Where Malta stands

According to the consultation document, renewables currently account for 17.2% of Malta’s energy mix, with a target of reaching 25% by 2030. The document credits the 2013 switch from heavy fuel oil to liquefied natural gas for much of the country’s price stability, saying it cut national electricity bills by 25%.

Citing Eurostat data, it states that Malta had the second lowest household electricity prices in the EU in 2025, and the lowest when adjusted for purchasing power, with households paying an average of €0.13 per kWh against a Eurozone average of €0.31.

Government spending on energy provision and distribution, the document says, now amounts to around 6% of GDP, a sixfold increase over the past decade.

Offshore wind and floating solar

The consultation document places significant emphasis on offshore renewable energy, noting that Malta’s Exclusive Economic Zone spans over 70,000 square kilometres.

The government has launched a pre-qualification process for an offshore floating wind farm with an expected capacity of 300MW, with two areas of around 100 square kilometres each identified beyond the 12 nautical mile range. A non-binding target of 350MW of offshore renewable capacity by 2050 has also been set.

On floating solar, the document notes that a preliminary market consultation was carried out, but that results suggest the technology requires further development before it is commercially ready.

Transport and energy efficiency

Transport accounts for roughly 42.6% of Malta’s final energy consumption, making it the largest energy-consuming sector locally, according to the document. It notes that by the end of 2025, nearly 24,000 electric and plug-in hybrid vehicles were registered in Malta, compared to 842 in 2016.

A €33 million shore-side electricity project at the Grand Harbour, the document states, is already operational, supplying around 3.7 million kWh across more than 80 ship calls and cutting ship-generated air pollution by about 90% in the area.

On household efficiency, the document says over 3,300 households have benefited from insulation and double-glazing schemes in the past four years, with more than €4.28 million disbursed. A street lighting project replacing roughly 34,000 luminaires with LED systems, costing around €13 million, is expected to cut energy use by over 60% once complete.

Gozo and the hydrogen pipeline

Abela said the government intends to make Gozo the first part of the country to achieve carbon neutrality, backed by investment in a submarine cable between the islands.

The consultation document also covers the Melita TransGas hydrogen-ready pipeline, a 159km link to Sicily designed to carry blends of renewable gases and, eventually, up to 100% hydrogen, with development permits already secured in both Malta and Italy.

Panels for those without a roof

Abela announced that the government would continue offering incentives for renewables investment, including the Pannelli Bla Bejt scheme, which gives 500 families the opportunity to participate in solar energy without needing rooftop access. According to the consultation document, participants pay a one-time €6,000 investment and receive 85% of the income from their share of a solar installation managed by the Water Services Corporation, with a projected average annual return of €855.

The scheme is expected to generate around 4 GWh of clean electricity in its first year, cutting roughly 1,500 tonnes of CO₂.

Malta’s Energy Shift: A Sustainable Power Transition

Energy Minister Miriam Dalli described the plan as a living document, with much of it already being put into practice. “This is a plan that will lead Malta to reach the goal of a carbon-free economy and continue to offer stability in energy prices. A plan that protects citizens. Where it ensures that this transition does not come with burdens, neither on families nor on businesses,” she said.

The consultation document also sets out Malta’s broader regional ambitions. It references a memorandum of understanding signed with Libya in 2023 on a potential subsea interconnector, and a separate agreement with Egypt in 2024 covering renewable energy and green hydrogen cooperation.

A preliminary market consultation has been issued to gauge interest in generating renewable energy in North Africa and transmitting it to Malta by cable. Malta chairs the MED9 steering committee, a group of nine southern EU member states working towards a Mediterranean Green Energy Hub.

The document also states that the government intends to extend Enemalta’s single-supplier framework by a further eight years to 2035, to maintain stability during the transition period.​​​​​​​​​​​​​​​​