UNIVERSITY OF MALTA  INSTITUTE FOR ENERGY TECHNOLOGY Triq il-Port Ruman, Marsaxlokk, MXK 1531, Malta TEL: (+356) 650675/652249      FAX: (+356) 650615

SYNERGY Workshop: “The Global Energy market and the Mediterranean Region – Shaping the Energy Executive of Tomorrow” Athens, 4 December 1998 The Energy Training Status of Malta Edward Scerri, Chairman     Abstract: Malta is wholly dependent on fossil fuel for its energy needs. Solar energy applications have not yet diffused into the Maltese fabric. The training in the energy field is covered by the Institute for Energy Technology and other Faculties at the University of Malta as well as the public utility, Enemalta. The latter operates under social and economic obligations that bear a heavy financial burden. Globalisation would signify a greater security of energy supply for Malta and price changes on specific fuels will be less dramatic. Introduction: As the political, economic and social aspects of a country play a vital role in the field of energy it is proper to elucidate some general information about Malta. The Republic of Malta is an archipelago consisting of three islands: Malta, Gozo and Comino. The Maltese Islands are situated in the middle of the Mediterranean Sea about 100 km south of Sicily. The topography of Malta is characterized by a series of low hills and slopes toward the North-West and low-laying land to the South-East. The population of the Islands is approximately 370,000 inhabitants. The Maltese society is homogeneous, having its own identity and language. Malta has a typical Mediterranean climate with dry, warm summers and mild winters. The islands enjoy over 300 days of sunshine per year. The sun is not yet used as a source for energy generation. Malta is a parliamentary democracy with a President as the titular head of State, while executive powers rest with the Prime Minister and the Cabinet. The judiciary is independent of the Government. The Maltese population forms a rather unique social and cultural society. The use of two languages, both Maltese and English side-by-side, makes communication rather easy and is attracting outside interests. As the islands offer a good mix of historical places and relaxation opportunities (beaches, etc..), tourism has become well-developed and as a result of this, the infrastructure facilities have been upgraded considerably. The implementation of renewable energy resources would surely make a major contribution to improving the environment on the island, which would further enhance the competitiveness of Malta as a holiday centre for foreigners. In comparison with other Mediterranean Islands, the educational level of the population is remarkable. This is reflected in the high professional standards and skills. The low unemployment rate and the political stability of the Government are other factors, which make the Island rather attractive for direct foreign investment. The economic development of Malta over the last ten years has been a considerable achievement. Over 200 international companies have been established in the Islands. Malta’s industrial strategy is based on encouraging foreign direct investment in advanced technologies. Malta’s industrial base is well diversified. A strong emphasis is laid on the production skills and meticulous quality control. Over 75 percent of the country’s manufactured exports are directed to the European Union. As a result of the country’s industrial development strategy, annual growth rates in GDP have been achieved ranging from 6-8 percent. The Energy Market Structure of Malta Enemalta Corporation is the sole provider and regulator of Malta’s energy requirement. It meets the constant growing demand for energy through investment in two power stations. The Corporation operates under social as well as economic obligations that result in a heavy financial burden. The protection of the environment is on the Corporation’s list of priorities. The introduction of a fuel/water emulsion and a combined cycle plant are a significant step in the right direction: an issue as critical as the environment can only be tackled in the face of harsh economic realities. The electricity demand continues to escalate. An estimated total of 1.7 million MWhrs of electricity were generated last year, 1997. The fuel used in the power stations is heavy fuel oil for the steam plant and gasoil for the gas turbines, which are peak load plants. The importance of having such units was felt when faults occurred to the boilers or the latter needed an overhaul. It is estimated that during 1997 the Corporation imported circa one million metric tonnes of petroleum products, and in the same year decrease of 3% in the sales of leaded premium. Enemalta comes under the jurisdiction of the Ministry of Economic Services. Energy Training Programmes in Malta Malta is totally dependent on fossil fuel imports. Roughly 60% of fuels is used for electricity production with an average efficiency of 26%. One significant reason for this low value is the widely varying load over the day and night. Peak load demand makes it necessary to make high investment in plant to satisfy a relatively short demand. The electricity consumption is increasing at a rate of 8% p.a., and 15% of the electricity produced is used to desalinate water. In the light of this and other factors the first step to develop a national management infrastructure has been taken. The Institute for Energy Technology at the University of Malta was set up in 1988 to assemble a cohesive team of individuals, highly skilled in the areas of engineering, marketing, sociology and scientific research related to energy technology from the various faculties of the University. Furthermore, it was given the task to respond to demand, which are economically, technically and industrially appropriate to the country. As a first step, it was necessary to identify the major industrial/public users and their areas of activity and hence tailor courses accordingly. Ideally the user nominates an employee with sufficient experience who can either take on the onus of Energy management for his company or serve as a liaison person between the company and the consulting Energy Manager. The Institute equipped itself for this latter function. This would guarantee impartiality and offer the service to users that cannot afford such specialised staff. Furthermore the Institute was charged with the task to assess national, renewable energy resource on the Islands. For this purpose graduate students were accepted to read for a post-graduate degree in the various aspects of solar and wind energy. In order to increase the collaboration between the Institute and the public utility, an agreement was drawn out and signed to the effect that the Institute shall be responsible for the development of basic scientific research and data collection related to solar and wind energies and to offer on request technical advice and information to Enemalta on renewable energy technology and their application. The political, economic, social and technical aspects of energy are all treated at under-graduate and post-graduate level in various faculties at the University of Malta. Enemalta Corporation’s staff development includes training programmes covering topics such as Management, Technical and Office Skills and Information Technology. Particular emphasis is placed on ‘in-house’ training programmes and a nucleus of Training Officers is appointed for this purpose. The Corporation also provides field training for students of the University of Malta. Globalisation of the Energy Market The major driving force in energy markets is undoubtedly the development of globalisation whilst the key determining factor is the environment challenge encountered. Given the extreme differences that exist between rich and poor countries in the Mediterranean region, globalisation is likely to intensify existing inequalities unless conscious action is taken to address these differences. As in all liberalised markets, the disciplines imposed on poor performers are severe. Countries that are unable to participate in this exercise of globalisation or attract significant amounts of foreign capital, risk falling farther behind the rest of the world in terms of growth and human development. For them, globalisation poses the very real threat of marginalization. The community of the Mediterranean region must not only fight marginalization with all of its energy, but must also join forces in the poorest countries – even more than elsewhere—to turn the risks of globalisation into real opportunities. Efforts to ‘catch up’ with industrialised countries in terms of competitiveness may also result in falling labour and environmental standards as utilities cut costs, thereby resulting in increased environmental degradation. It is important that rules and standards are genuinely negotiated and allow for a gradual application, so that lower standards are permitted in poorer countries until their economies have developed sufficiently to be competitive within the same limits. Although globalisation offers considerable economic opportunities, it also entails risks for low-skilled workers. This can only be overcome by an appropriate education policy. Countries which exploit the opportunities presented by globalisation through increase in their education and R&D endeavour can then venture further. Globalization is an issue on which many people disagree. Some believe that the opportunities that globalisation can bring outweigh its risks; others see in globalisation the undoing of all they are striving to achieve. One thing is certain: we already live in a global economy, and it is becoming more closely integrated in terms of trade and financial flows every year. Liberalised energy markets may be a key to resolving environmental issues, since it is only with better economic conditions that developing countries will have the ability to pay for social and environmental improvements. Opening of the energy markets would signify a greater security of supply for Malta and price changes on specific fuels will be less dramatic. In the case of electricity, Malta will be less dependent on its own generation capacity as it can to a greater extent rely on others. However, even more important is to exploit the possibilities offered by renewable energy sources. It is necessary to promote the market penetration of those renewable energy options that are not yet economic today but may well become so in the near future. For that purpose it is essential to remove all the hidden subsidies for fossil fuel use, so that local and national economies would become much stronger. Energy has, up to now, been dictated by the demand and within a realm of a ‘social necessity’ has been excluded from any market forces as the latter cannot be relied on to manage the supply and demand of energy.   BACK TO ARTICLES