Maltese households see highest increase of energy consumption in the EU

Malta’s explosive increase in energy consumption despite global shocks to the energy trade since 2015 are due in no small part to energy subsidies.

Government spent around €1 billion on energy subsidies to shield the economy from global shocks. Government has promised to retain the indiscriminate subsidy policy for the foreseeable future.

This has resulted in Malta having some of the lowest energy prices in the EU, with the Eurostat data noting that Maltese households paid just €12 per 100kWh. The lowest prices in the bloc are found in Hungary at €10 and the highest were observed in Germany at €38.

Malta's energy subsidies prompted warnings from international bodies like the IMF and locally by the central bank. In 2025, the central bank called for a phased exit strategy to avoid long-term fiscal, environmental, and structural costs.

Malta was noted to have the third-lowest proportion of renewable energy use in the EU, as the use of renewables in the country stands at just 16% of the energy consumed. The current EU target is to reach a minimum of 42.5% renewables by 2030.

In fact, the Eurostat data shows that Malta is proportionally the biggest user of fossil fuels in energy production, as these account for almost 85% of the electricity produced. 

Transport continues to be Malta’s highest source of greenhouse gas emissions, measuring at 46%.