Enemalta receives first €2.5 million installment from ElectroGas

The Maltese consortium tasked with building the new gas-fired power station at Delimara has delivered its first of 12 payments to Enemalta.

In a statement, the Ministry for the Energy said the first installment of €2.5 million has been paid.

ElectroGas entered into an agreement with Enemalta for a €30 million advanced payment to cover planned tariff reductions for households. The cash consolidation is being paid over 12 months with a monthly payment of €2.5 million.

“The payment reflects the agreement of reached between Enemalta, Shanghai Electric Power and ElectroGas and how they will be working together,” the ministry said.

It explained that the €30 million cash consolidation formed part of Enemalta’s financial plan which enabled the reduction of tariffs for households and businesses.

According to new timeframes announced by the government, Malta will be making use of gas-generated electricity by June 2016. A 200MW interconnector connecting Malta to the European grid will be commissioned in early 2015 as works on the interconnector are in their final stages.

The June 2016 deadline also means that the BWSC plant would have been converted to gas while the ElectroGas plant is up and running.
Around 50% of Malta’s required electricity will be generated by the ElectroGas consortium, while the BWSC plant – to be converted to gas by Shanghai Electric Power – would cater for 30% while the interconnector would provide for the rest of the 20% of the energy mix.