Malta exempted from the EU gas reduction target due to the lack of a pipeline
Malta will be exempt from a new EU agreement to reduce gas demand by 15%, because it is not interconnected with the gas networks of the member states.
Malta, which is supplied with LNG for its Delimara plant through a floating storage terminal, will be exempt from mandatory gas cuts, also because it continues to depend on gas for electricity production.
The member states of the European Union have arrived political agreement on a voluntary reduction of the demand for natural gas by 15% for the coming winterin an effort to make savings before a possible disruption of gas supplies from Russia.
The proposed regulation will allow the EU to trigger a security of supply alert, in which case the reduction of gas demand becomes mandatory.
“The fact that we remain disconnected from the trans-European gas network does not mean that we are not sensitive to the challenges faced by other member states,” said Energy Minister Miriam Dalli to the energy council.
Malta depends partly on Italy to meet electricity demand, where prices have risen to €650 per MegaWatt-hour.
“Our ultimate goal is to protect consumers, jobs and economies, but most importantly to transition to cleaner energy options. We are working hard to increase our share of renewable energies… reducing energy demand, encouraging consumers to choose renewable sources, solar water heaters and heat pumps, and giving targeted funding to industry to invest in energy efficient equipment, although the current state aid rules limit that aid.”
Dalli also said that the EU should prioritize investment in renewable projects for its sea basins, i.e. floating technologies.”
The Czech EU Presidency hailed the agreement as a sign of solidarity between European states against any Russian attempt to divide the EU by using energy supplies as a weapon. “The adoption of the gas reduction proposal in record time undoubtedly strengthened our common energy security. Saving gas will now improve preparedness. The winter will be much cheaper and easier for EU citizens and industry,” said Jozef Síkela, the Czech minister of industry and trade.
The German minister for the economy and energy, Robert Habeck, said that the EU proposal for gas reduction was described in a negative way in the media. “However, in five days, some form of agreement was reached. This shows Europe’s ability to act in the face of a clear strategy from the Kremlin… to break European solidarity at high prices.”
The reduction in gas demand of 15% compared to the average consumption in the last five years, will take place between 1 August 2022 and 31 March 2023with each country adopting measures of their own choosing.
Member States have been told to choose measures to reduce demand by prioritizing measures that do not affect protected customers such as housing and essential services such as health care and defence.
Possible measures include the reduction of gas consumed in the electricity sector, measures to encourage fuel switching in the industry, national awareness campaigns, targeted obligations to reduce heating and cooling and measures market-based such as inter-company auction.
The regulation is an exceptional measure, foreseen for only one year so far.
Europe’s energy ministers today exchanged views on the initiatives proposed by the Commission in its package ‘Save gas for a safe winter’.
The European Commission’s REPowerEU Plan seeks to end the EU’s dependence on Russian fossil fuels and address the climate crisis.
“Putin thinks democracy is decadent and weak,” said EC vice-president Frans Timmermans, on an optimistic note about the EU’s joint procurement missions in North Africa and Azerbaijan . “We will prove that he is wrong. But apart from proving him wrong, we need to create the right levels of solidarity in our energy system.”