At present, there are five main sources of electricity generation in Malta:

• a 205 MW Siemens combined-cycle gas turbine power plant, owned and operated by a private consortium of investors;
• a 144 MW dual-fuel power plant operating on a combination of gas and diesel;
• a 200 MW electricity interconnector between Malta and Sicily, owned and operated by Enemalta Plc as the sole buyer and supplier of electricity in Malta (note that a second interconnection is being constructed to further enhance diversification of supply);
• renewable energy generation from private and small-scale commercial land-based photovoltaics; and
• a 60 MW temporary diesel-fuelled power plant.

Over the past decade, Malta has seen a significant increase in renewable energy generation as a share of supplied electricity. According to data from the National Statistics Office (NSO), the share of renewable energy sources (RES) in the overall energy mix increased from approximately 1.5% in 2013 to approximately 10% in 2023. To date, most of the country’s renewable energy has been derived from solar photovoltaic (PV) installations, which constitute 97% of its renewable energy production.

According to the NSO, PV deployment continued to increase during 2024 and 2025. In 2025, Malta had 36,243 grid-connected PV installations, with combined maximum power output of 268,016.5 kWp, representing a 5.2% increase over 2024. PV electricity generation was estimated at 351.5 GWh in 2025, a 7.5% increase over the previous year. The 2025 stock remained overwhelmingly domestic by number of installations, with the domestic sector accounting for 93.2% of installations, while the commercial sector accounted for 53.1% of total kWp.

Malta’s updated National Energy and Climate Plan (NECP), published in December 2024 and covering 2021–2030, now frames the 2030 trajectory around a materially higher renewable-energy contribution than the earlier 11.5% reference. Under the updated policy direction Malta’s renewable energy generation is commonly expressed as a 25% renewable share by 2030.

Notwithstanding encouraging levels of RES development, Malta’s overall share of RES in final energy consumption remains one of the lowest in Europe, with the main challenges in expanding RES relating to spatial constraints and limited land-based renewable energy potential. While the waters off the coast of Malta offer a potentially expansive area for offshore renewable energy development, deep bathymetry has hindered the deployment of conventional offshore structures. Recent advancements in offshore floating technology have, however, led to a renewed focus on offshore RES potential, with the NPOR citing an increased focus on offshore floating wind and solar projects (including hybrid systems comprising both offshore wind and solar technologies).

Energy Transition and Applicable Targets

The initial steps in Malta’s energy transition have been to move away from carbon-intensive heavy fuel oil for power generation, by means of:

• decommissioning the 1953 Marsa Power Station;
• developing an electricity interconnector with Sicily;
• converting a principal power station to run on natural gas; and
• developing a combined-cycle gas turbine power station.

Following such developments, the electrical energy mix in Malta consists of approximately:

• 60% local generation from gas-fired plants;
• 30% direct imports over the Malta–Italy interconnector; and
• 10% of local RES generation.

Malta’s updated NECP provides for a renewable energy contribution of no less than 25% of gross final energy consumption by 2030, as part of Malta’s contribution towards the achievement of the European Union’s binding renewable energy target of 42.5% by 2030. In addition, Malta is aiming for climate neutrality by 2050 through a combination of domestic mitigation measures, renewable energy deployment, energy-efficiency initiatives, additional interconnection with mainland Europe, storage solutions and, where applicable, EU flexibility mechanisms.

Malta’s energy transition in the run up to 2030 will focus on several areas of energy efficiency, RES and energy security, including but not limited to:

• development of floating offshore wind and solar farms;
• expanding the capacity of the electricity grid infrastructure to handle increased intermittent energy;
• increased energy efficiency of buildings;
• investment in battery-energy storage systems (BESS);
• developing a second electricity interconnector with mainland Europe;
• planning of a potential third interconnect with mainland Europe;
• investment in energy storage capacity;
• proposed development of a hydrogen-ready gas pipeline with Italy; and
• considering additional strategic interconnection options, including the prospective importation of renewable electricity from North Africa.

Spatial limitations and resource potential are the main factors influencing the future deployment of RES. Owing to its geology and topology, the production of cheaper forms of RES such as hydro and geothermal energy are not viable options for Malta, which has its highest point at only 253 metres above sea level and no significant thermal gradient or any water bodies. Wave and tidal energy potential is also considered very limited, and efforts to tap into this RES are still at an initial research stage. Biomass production is also not deemed a viable option, due to freshwater scarcity and limited land availability.

These circumstances, together with deep bathymetry in territorial waters, have resulted in Malta focusing on domestic and small to medium-scale solar PV development to date. Recent advancements in offshore floating technology have, however, created new opportunities for diversification in RES, particularly offshore wind. Accordingly, floating offshore wind and solar energy are increasingly expected to play a key role in reaching RES targets for Malta, which may include hybrid systems comprising both offshore wind and solar technologies.

In addition, waste-to-energy plants are also being further explored as a means of increasing RES contributions and as a solution to landfill capacity issues. To date, Malta has developed biogas production primarily from organic waste through anaerobic digestion processes by such waste, to produce biogas for electricity generation. The main biogas plant operator is Wasteserv Malta Ltd, which is responsible for developing waste to energy largely derived from food waste, agricultural residues and green waste. Such projects will play a role in increasing Malta’s RES portfolio as well as in reducing landfill methane emissions.

RES generation continued to increase in 2024 and 2025, although demand growth and higher imports have kept the renewable share of electricity supply broadly in the 10–11% range. In 2024, electricity supplied increased by 6.5% to 3,106.1 GWh, renewable electricity reached 336.0 GWh, and average electricity demand increased to 478 MW. In 2025, PV generation from grid-connected installations increased further to 351.5 GWh.

Population growth and increasing tourism are leading to a situation where energy demand is increasing at a faster level than RES deployment on land. For this reason, the government is evaluating the potential for development of floating offshore wind and solar farms in the run up to 2030, as the principal means for achieving renewable energy targets. The main developments that will facilitate large-scale RES deployment include:

• the launching of the latest NPOR, which provides a strategic framework aimed at promoting the development of offshore renewable energy projects, such as wind and solar, within an area intended to form part of Malta’s exclusive economic zone (EEZ);
• the launching of the first public call for offshore wind development, seeking to pre-qualify developers for Malta’s first floating wind farm, with an expected capacity of 280 MW to 320 MW – the tender process began on 5 December 2024 with the release of a pre-qualification questionnaire (PQQ); and
• ongoing upgrading of electricity distribution networks to manage electricity fluctuations and increased energy loads, in a manner that ensures network reliability and reduces the risk of network disruptions.

The energy market in Malta is primarily regulated by a set of national laws, EU Directives and regulatory frameworks, aimed at ensuring market liberalisation, promoting renewable energy and supporting sustainable development and construction of RES projects.

The following are the key laws, regulations and legal frameworks that govern the licensing and operation of RES projects.

Primary Legislation

The Regulator for Energy and Water Services Act (Chapter 545 of the Laws of Malta) established the Regulator for Energy and Water Services (REWS) as the primary regulatory body overseeing energy and water sectors in Malta. REWS is responsible for:

• licensing;
• tariffs;
• market monitoring; and
• ensuring compliance with EU Directives.

The Environment Protection Act (Chapter 549 of the Laws of Malta) regulates environmental assessments and ensures that energy projects comply with environmental standards. It plays a role in regulating emissions from power plants and renewable energy installations.

The Development Planning Act (Chapter 552 of the Laws of Malta) is managed by the Planning Authority (PA), and governs land use and site permitting for energy installations, including renewable energy projects such as solar farms and potential offshore wind sites.

The Climate Action Act (Chapter 643 of the Laws of Malta) established the Climate Action Authority (CAA), responsible for:

• the exercising of climate action;
• co-ordinating and overseeing mitigation and adaptation policies; and
• the reporting of climate action.

Subsidiary Legislation

This includes the following.

• The Electricity Regulations (Subsidiary Legislation (SL) 545.34) – these implemented the EU Electricity Directive (2003/54/EC) and marked the liberalisation of Malta’s electricity market in terms of electricity generation, allowing for third-party access to the grid (note that Malta has a derogation until 2027 in relation to the unbundling of transmission and distribution systems).
• The Environmental Impact Assessment Regulations (Subsidiary Legislation 549.46).
• The Development Notification Order (Subsidiary Legislation 552.08).

Policy Documents

The NECP is a strategic planning and policy document that follows the scope of the Energy Union and covers its five dimensions:

• decarbonisation;
• energy efficiency;
• energy security;
• internal energy market; and
• research, innovation and competitiveness.

The NPOR (see 1.1 Energy Transition) outlines Malta’s approach to establishing offshore wind and solar power sources. The policy sets out six strategic offshore zones for potential offshore wind and solar energy deployment, and identifies three specific locations where these offshore projects will connect to the onshore grid at Delimara, Magħtab and Marsascala. The recent launching of the first public call for offshore wind development in Malta further shortlists the identified zones for offshore wind development to two specific zones off the southern coast of Malta.

Upcoming Legislative Changes

In 2021, Malta enacted the Exclusive Economic Zone Act (Chapter 625 of the Laws of Malta), thereby creating the legal basis for the designation of a potential EEZ and potential EEZ areas adjacent to Malta’s territorial waters – this without prejudice to Malta’s final EEZ designation. The Act was subsequently amended to facilitate the future exercise of Malta’s sovereign rights and jurisdiction within designated EEZ areas in order to regulate anticipated large-scale offshore RES development outside Malta’s territorial waters in designated EEZ areas. The legislation has since assumed particular significance in the context of Malta’s energy transition strategy, as it provides the foundational legal architecture for the development of offshore renewable energy projects, including floating offshore wind and solar installations in areas lying beyond Malta’s territorial sea.

In addition, there has been notable regulatory focus on expanding the energy distribution of battery-energy storage systems, to enable increased renewable generation. This includes efforts to modernise the electricity distribution network, with the aim of enhancing network resilience, capacity and reliability.

The government also launched a national policy for the deployment of offshore renewable energy in August 2023, which was further updated in October 2024 (see 6.2 Offshore Project Development).

The relevant ministerial portfolio has recently been referred to in official releases as the Ministry for the Environment, Energy and Public Cleanliness. The Ministry remains the principal policy-setting body for the energy transition, renewable energy deployment, electricity interconnection and energy-security projects.

The other principal public sector actors include the following.

The Regulator for Energy and Water Services (REWS)

Established under the Regulator for Energy and Water Services Act, REWS oversees the regulation of energy and water sectors, including the licensing, compliance and monitoring of energy providers. REWS is responsible for setting tariffs, enforcing renewable energy policies and ensuring adherence to EU Directives on energy efficiency and sustainability.

The Environmental Resources Authority (ERA)

The ERA is Malta’s main environmental regulatory body, tasked with safeguarding environmental quality. It conducts Environmental Impact Assessments (EIAs) for new energy projects and ensures compliance with environmental laws. The ERA works closely with other authorities to manage the environmental aspects of renewable energy projects, land use and pollution control.

The Planning Authority (PA)

The PA regulates land use and development permits for energy and infrastructure projects, including renewable energy installations, both land-based and offshore. The PA collaborates with the ERA and REWS to ensure that projects meet planning and environmental standards.

The Climate Action Authority (CAA)

Created in October 2024 under the Climate Action Act, this authority co-ordinates Malta’s climate policies, especially in alignment with EU climate targets. The CAA plays a central role in implementing the low-carbon development strategy and in promoting renewable energy, emissions reductions and other climate-related measures.

Enemalta plc

This is a Maltese majority state-owned energy company which is the country’s sole electricity supplier and sole distribution system operator (DSO). It is responsible for operating and maintaining Malta’s electricity distribution network and the electricity interconnector linking Malta to Sicily.

Interconnect Malta

This is a Maltese majority state-owned company established to develop and implement strategic energy infrastructure projects of national importance. Interconnect Malta has become increasingly prominent as the government entity entrusted with energy interconnection projects, offshore renewable energy and large-scale projects with battery-energy storage systems to be connected to the grid.

Under Maltese law, REWS and the PA are the main authorities that oversee the RES application process. Said authorities co-ordinate the various required permits and approvals, particularly for medium to large-scale projects over a certain kilowatt threshold. These requirements would include EIAs and development permits from the PA, and licensing requirements by REWS for electricity generation and grid connection. Exceptions to general licensing requirements are with respect to domestic RES installations up to 16 amps per phase, whereby a generation licence is not required.

RES projects, particularly with respect to large and medium-scale projects, are strictly regulated under Maltese law to ensure the safety and integrity of the grid as well as conformity with spatial planning rules and environmental considerations. These regulatory requirements form part of the framework for meeting Malta’s renewable energy targets, and align with EU standards for enhanced clean electricity generation.

To date, solar PVs have been the main adopted technology, although the relevant rules and regulations arguably also apply with respect to other RES technologies that have not seen large-scale deployment. In addition, potential large-scale projects may also need to participate in calls for project proposals, as REWS issues specific calls to control capacity allocations.

The ownership and transfer of renewable energy assets such as solar or wind farms are not specifically catered for under Maltese law; arguably, the general principles of civil law will apply. Energy asset transfers are also expected to ensure consistency with energy policy, national security and competition law considerations. In addition, there are also indirect restrictions and considerations related to regulatory oversight, project approvals and eligibility requirements for government incentives.

REWS and the PA oversee licensing and permitting for energy projects; any potential transfers of ownership and control of licensed and permitted installations must ensure that such transfers align with regulatory standards. Any new owner of a renewable energy asset is required to comply with existing permits and licences, and must meet eligibility criteria for subsidies, feed-in tariffs (FiT) or grants (if the assets receive such support). This is particularly fundamental for large-scale projects that are subject to tendering processes and additional conditions, in order to maintain eligibility for incentives or public funding. As a result, ownership changes for large-scale renewable projects must go through review processes to ensure compliance with local energy policies and sustainability goals, particularly given Malta’s push towards expanding its renewable energy capacity by 2030 to meet and exceed EU-mandated targets.

Until 2004, Malta’s electricity market was a closed system with a single state-owned generator, distributor and supplier of electricity. Malta has gradually opened its renewable energy sector up to foreign investment and diversification of ownership of energy infrastructure. Nevertheless, such developments involve specific regulatory considerations due to the impact on national energy security, and necessitate compliance with EU investment guidelines. Key approvals are required, particularly for large-scale renewable projects, with REWS overseeing many aspects, from licensing to grid access both for local and for foreign entities.

Foreign investments must align with energy policy goals, focusing on sustainable growth and minimal environmental impact. Pursuant to the publication of the NPOR, Malta is developing an offshore renewable energy strategy with a view towards expanding renewable generation with private sector involvement, including through foreign entities. Indeed, Malta has now begun the process of testing foreign and local investor appetite through concrete procurement and market-sounding processes, including an offshore wind pre-qualification questionnaire (PQQ).

Historically, a developer seeking to build a floating offshore wind or solar project in Maltese waters would likely need to engage with multiple public authorities and stakeholders, each responsible for different aspects of the project. Depending on the nature of the development, these may include authorities responsible for energy regulation, environmental protection, maritime safety, planning, fisheries, cultural heritage, navigation, grid connection and offshore resource management. Malta’s offshore renewable energy policy recognises that this multi-agency structure could create delays, duplication and regulatory uncertainty for investors. Owing to these various vested interests in the waters surrounding Malta and the many commercial activities and national operators involved, the NPOR envisaged the establishment of a “one-stop shop” for renewable energy projects, with a view towards expediting general co-ordination and approvals for offshore wind and solar projects, as well as streamlined guidance in relation to the permitting and licensing processes necessary for constructing and operating the proposed offshore projects.

This set-up intends to balance private investment incentives with the country’s clean energy ambitions, while assisting potential investors in navigating the regulatory process with greater efficiency and transparency. Such approach is also ultimately intended to facilitate the timely deployment of offshore renewable energy infrastructure while ensuring that environmental, maritime and energy-sector interests remain appropriately co-ordinated.

Renewable Energy Generation

The electricity production and generation market for renewable energy in Malta primarily involves domestic and small-scale PV systems. Land-based renewable resources beyond solar are limited due to geographic, spatial and environmental constraints, which restricts large-scale deployment. Malta’s renewable energy mix is therefore primarily composed of solar power, which accounts for almost all renewable energy produced domestically, making up approximately 97% of Malta’s renewable electricity production. Recent policy initiatives have therefore focused on the potential development of offshore wind and solar projects as a means of expanding renewable generation beyond the constraints of land availability.

Biogas from organic waste also contributes to the overall RES electricity generation portfolio, though to a much smaller extent, with limited electricity generation through anaerobic digestion of organic waste materials. Meanwhile, wind energy offers an attractive alternative to solar; however, spatial limitations on land, and environmental and technical difficulties with deployment offshore, have inhibited large-scale project deployment to date. Nevertheless, following recent advancements in floating technology, offshore wind development is expected to become a main focus as the principal contributor towards increased levels of RES in the overall energy mix.

Regulation and Key Parties

The key regulatory authorities involved in Malta’s renewable energy sector include the Energy Ministry, REWS, ERA and the PA (as further set out in 2.2 Regulating Authorities). Together, such authorities establish energy policy and design and implement Malta’s energy strategies. REWS is the main authority responsible for regulatory compliance, ensuring that all RES installations meet national standards, whether domestic systems or larger-scale solar or wind farms. The regulatory framework includes grants, subsidies and FiT for PV installations, providing incentives both for residential and for small to medium-scale commercial installations. For larger projects regulatory approvals and grid connection clearances are required, with REWS exercising licensing and regulatory oversight functions and Enemalta assessing the technical feasibility and impact of the proposed connection on the national grid, ensuring that new generation projects do not compromise grid stability or efficiency. In addition, the NPOR supports potential future projects in floating offshore wind and solar, as these emerging technologies become increasingly viable for Malta’s conditions.

Key market players include the following.

Electrogas Malta Limited

This is a Maltese company made up of a consortium of private shareholders – namely Siemens, Socar and a syndicate of Maltese investors. The consortium owns and operates a 205 MW Siemens combined-cycle gas turbine power plant and the floating liquefied natural gas (LNG) storage vessel berthed adjacent to the power station, with the re-gasification plant being located on the same power station site.

D3 Power Generation Limited

This is an energy company incorporated as a joint venture between a subsidiary of Shanghai Electric Group (as majority shareholder) and Enemalta. The company owns and operates a 144 MW dual-fuel power plant operating on a combination of gas and diesel.

Enemalta plc

This is a Maltese majority State-owned energy company with minority shareholding by a subsidiary of Shanghai Electric Group. Enemalta is one of the main power generation entities as well as the sole DSO and sole supplier of electricity in Malta. In addition it is also the operator of the electricity interconnector with Sicily. Enemalta is also the operator of a temporary diesel-fuelled 60 MW power plant to ensure uninterrupted supply in the event of a failure in one of the main power generation sources.

Waste-to-energy plants in Malta are regulated under a combination of national laws and EU regulations that govern waste management, environmental protection and electricity generation. With oversight from authorities such as the ERA and REWS, Malta aims to develop biogas production primarily from organic waste, especially through anaerobic digestion processes. Biogas production is associated with Wasteserv Malta Ltd which has historically operated the Sant’ Antnin Waste Treatment Plant, where organic waste has been processed to produce biogas for combined heat and power generation, with surplus electricity exported to the national grid. Meanwhile, recent waste-management policy has shifted towards new and upgraded organic-waste treatment infrastructure within Malta’s broader waste-to-energy strategy.

Biogas feedstocks include food waste, green waste and other biodegradable organic material, contributing both to renewable energy generation and the reduction of landfill methane emissions. While biogas continues to represent only a small proportion of Malta’s renewable energy mix when compared to solar photovoltaic generation, recent investment in new anaerobic digestion infrastructure is expected to expand the role of waste-to-energy projects in Malta’s transition towards a more diversified and circular energy system.

The potential for geothermal energy development in Malta is limited, unless new technological advances emerge that could make low-temperature geothermal resources viable on a larger scale. Malta’s geological structure is composed mostly of limestone with relatively shallow bedrock, and lacks the high-temperature geothermal resources typically associated with volcanic or tectonically active regions. Conventional geothermal electricity generation generally relies on accessible high-temperature underground resources, which are not present in Malta.

There has been some exploration of low-temperature geothermal energy options, such as ground-source heat pumps, which can use the relatively stable underground temperatures to provide heating and cooling. However, these systems are typically more feasible for small-scale applications in buildings and are not utilised for large-scale power generation. As a result, Malta’s renewable energy strategy has focused on solar and wind energy, which are more compatible with the country’s geographic conditions and renewable energy potential.

Malta currently has no dedicated hydrogen infrastructure or extensive legislation specifically regulating hydrogen production, transport or use. Nevertheless, the Maltese government views hydrogen as a potential option for long-term energy decarbonisation (particularly for the transport industry), with such views reflecting the EU’s broader hydrogen strategy.

In terms of biofuels, existing EU obligations have led to a more actively regulated market. Regulation is primarily geared towards distribution and usage, ensuring compliance with sustainability, performance and environmental standards. In terms of production, Malta relies on imports to meet its targets. The potential for biofuel production in Malta is limited due to several geographic, economic and logistical constraints – primarily associated with the country being one of the most densely populated in the world and having limited agricultural land available for growing biofuel feedstocks. This notwithstanding, biofuels will likely receive more policy attention as Malta moves towards meeting its 2030 and 2050 emissions targets.

In addition to the foregoing, a hydrogen-ready gas pipeline with Italy has been under consideration as part of Malta’s long-term energy strategy to diversify and secure its energy supply. Such project would provide Malta with a stable natural gas supply, thereby reducing dependence on imported LNG and increasing security of supply by integrating Malta with the European gas network. This connection would:

• support Malta’s goals for energy security;
• reduce carbon emissions;
• enhance the flexibility of Malta’s energy supply; and
• potentially tap future opportunities, such as the potential supply of biogas blended with natural gas and hydrogen.

Small-scale generation of renewable energy for own or domestic use is primarily regulated by the Electricity Regulations (SL 545.34 of the Laws of Malta) and the Energy and Water Services Act (Chapter 545 of the Laws of Malta).

Such regulations provide guidance on the individuals and entities that are allowed to connect their RES generation systems to the grid, subject to certain conditions. Pursuant to the regulations, small-scale producers are able to produce energy for self-consumption or feed surplus electricity into the grid under specific schemes. In addition to the foregoing, said regulations provide an overarching framework for the registration, certification and monitoring of small-scale renewable energy installations, such as domestic rooftop solar PV systems.

In terms of incentives, the Feed-In Tariffs Scheme (Electricity Generated from Solar Photovoltaic Installations) Regulations (SL 545.27 of the Laws of Malta) regulate FiT for small-scale renewable energy producers, allowing households and businesses to sell excess electricity generated by their PV systems back to the grid at a fixed rate. The FiT scheme is periodically reviewed by REWS and varies based on system capacity, funding availability and the applicability of concurrent grants.

Electricity Market

Malta’s electricity market is structured as a single-buyer market, with Enemalta, a Maltese majority State-owned entity, acting as the sole supplier and DSO of the electricity grid (owing to the limited size of the market, there is no transmission system or transmission system operator (TSO)). This structure centralises control of the grid, which may facilitate the integration of RES by minimising complexities in grid management.

Furthermore, in view of the derogations from the application of the Electricity Market Directive (EU) 2019/944, namely in relation to Articles 4 (free choice of supplier) and Article 6 (third-party access), the licence for the supply of electricity shall be issued only to Enemalta. Thus, in the case of a contract for difference (CfD), Enemalta would likely be expected to act as the exclusive off-taker for wholesale electricity until such time as the electricity supply market framework is amended – whereas in the case of a power purchase agreement (PPA), Enemalta will act as the off-taker at the agreed price (as per the PPA) for the whole duration of the contract.

Enemalta, as Malta’s designated sole energy supplier and DSO, is the entity that assesses the technical impact of each renewable energy development project on the national grid. Where necessary, the DSO shall evaluate how, where and at what voltage level grid connection for RES projects can be made. The connection and operation will have to follow Malta’s Network Code (NC), which also regulates how and when situations of curtailment may arise. Furthermore, electricity dispatch and balancing obligations will be in line with the Electricity Regulations (SL 545.34 of the Laws of Malta).

Battery Storage

As RES penetration increases, storage solutions (particularly battery storage) will play an increasingly relevant role in Malta’s energy system. Although Malta does not currently have a dedicated legislative regime exclusively governing battery storage, energy storage facilities are expressly recognised under the Electricity Regulations and are subject to notification, technical and regulatory requirements administered by REWS, in addition to applicable environmental, planning and grid connection requirements.

Although Malta’s adoption of battery storage is still limited, the government has introduced and continues to expand incentive schemes for supporting the deployment of storage systems at residential and commercial levels.

Large-scale battery systems form part of Malta’s NECP and broader energy transition plan, as a means of mitigating issues of intermittency in renewable generation by storing excess energy generated during peak generation hours and discharging it when demand is high or supply is low. InterConnect Malta has been entrusted with the responsibility to implement battery-energy storage systems to be connected to the national electricity grid network.

Grid Congestion Management and Curtailment

To manage grid congestion during periods of higher-level RES generation, the DSO can implement curtailment measures. While grid connection from RES is generally provided on a priority and guaranteed access basis, there may be instances of forced curtailment such as in cases where the grid must reduce RES input to avoid overloading. Accordingly, renewable energy installations generally benefit from non-discriminatory access to the electricity network, however, this remains subject to technical, operational and system security requirements. In such instances the DSO is permitted to disconnect or scale down RES generation systems during peak production if demand is low. This approach is viewed as a last resort, and, given Malta’s limited renewable energy production and general peak energy demands tallying with periods of peak production, such curtailment scenarios are irregular.

The DSO uses demand forecasting and advanced monitoring systems to predict potential congestion and curtailment needs. Real-time adjustments help balance supply and demand, while the electricity interconnector with Sicily provides additional operational flexibility by enabling cross-border electricity exchanges and supporting system balancing. Instances of curtailment may increase once anticipated offshore RES projects become operational; however, Malta’s planned second interconnector and ongoing deployment of utility-scale battery-energy storage systems are expected to facilitate greater renewable energy integration and reduce the risk of network constraints. As offshore renewable energy projects are developed and renewable penetration increases, congestion management and curtailment mechanisms may assume greater practical importance, although the combined use of interconnection capacity and energy storage is expected to minimise the need for extensive renewable energy curtailment.

Arrangements for Flexibility

Currently, Malta does not have a fully developed market for demand-side flexibility or widespread residential demand-side flexibility mechanisms comparable to those found in larger European electricity markets. However, through REWS and the energy policies outlined in the NECP, Malta is exploring ways to encourage demand-side flexibility, including by incentivising businesses to adjust consumption patterns to support grid stability.

Small-scale RES producers – primarily solar PV owners – typically have FiT contracts allowing them to sell excess energy to the grid. Grid connection and support arrangements may provide for operational restrictions or curtailment in circumstances where this is necessary to maintain network security and stability.

To date, the intermittent nature of RES has been largely managed through the electricity interconnector with Sicily and Malta’s conventional power generation facilities. Looking ahead, additional flexibility is expected to be provided through the second Malta–Sicily interconnector, the deployment of large-scale battery-energy storage systems and continued assessment of demand-side response mechanisms.

In addition, in July 2024 a memorandum of understanding (MOU) was signed between Malta and Libya, focusing on collaboration for renewable energy projects (primarily solar energy) and the establishment of an energy interconnector between the two countries. The MOU highlights a commitment to leveraging Libya’s abundant solar energy resources to meet Malta’s and Europe’s needs, while also supporting Libya’s development and its role as a regional energy partner. Potential projects would involve linking the electricity grids of Malta and Libya via an undersea cable to enable Malta to import renewable energy generated in Libya and export surplus energy to Europe, with Malta acting as a bridge between Africa and Europe.

Distribution system secondary-node reinforcements are also being implemented to address issues related to system-current carrying capacity and voltage regulators. However, further installation of renewable energy capacity (particularly large-scale installations such as offshore wind and solar technology) will necessitate the implementation of different mitigating strategies – namely, utility scale storage, dispatching and major grid upgrades to minimise curtailment.

Market Structure

Malta currently has limited infrastructure dedicated to the production, transport and storage of biogas or other renewable gases. Currently, biogas in Malta is mainly generated from organic waste through anaerobic digestion. However, production levels are low, and most of the biogas generated is used onsite (primarily in waste treatment facilities) rather than injected into a gas grid or widely distributed. Malta does not currently have a gas grid and therefore cannot accommodate large-scale biogas or green gas distribution.

Malta’s renewable gas sector is intended to be largely centred on waste-to-energy through organic waste treatment projects operated by WasteServ Malta Ltd. Historically, biogas was produced at the Sant’ Antnin Waste Treatment Plant, however, further investment in new anaerobic digestion facilities is expected to expand renewable gas production capacity and contribute to a more circular waste management and energy system.

Challenges and Limitations

The development of renewable gas infrastructure in Malta faces the following challenges.

• Lack of gas grid – Malta does not have a dedicated natural gas pipeline network, which limits the potential for renewable gas distribution.
• Limited feedstock availability – Malta’s small geographical size, limited agricultural sector and finite supply of organic waste restrict the volume of feedstock available for sustainable large-scale renewable gas production.
• Small market size – given Malta’s small population and limited land, expanding biogas production and storage may face economic and logistical limitations.
• High initial investment – developing renewable gas infrastructure requires significant investment, which may be difficult to justify in a small market with limited economies of scale.

The sector for the transportation and storage of heat from renewable sources in Malta is underdeveloped, and there are currently no dedicated heat grids or infrastructure for distributing renewable heat. Malta’s small geographical size, mild Mediterranean climate and relatively low heating demand significantly reduce the economic feasibility of establishing large-scale centralised or district heating systems that transport and distribute heat.

Limited localised heat production for consumption is found in the form of solar water heaters and heat pumps installed in residential, commercial and tourism-related developments, with biomass boilers playing only a marginal role. Consequently, the principal participants in Malta’s renewable heat sector are residential users and small businesses installing and operating decentralised renewable heat systems.

Malta’s sector for the transportation and storage of hydrogen, biofuels and other types of renewable energy is still in its early stages of development. The country does not currently have hydrogen grids or infrastructure for transporting renewable gases or biofuels. While the proposal of a gas pipeline project with Italy has been under consideration as part of Malta’s long-term energy strategy to diversify and secure its energy supply, the project benefits and economic considerations are still being evaluated. This connection would potentially enable the supply of biogas blended with natural gas (and possibly also hydrogen).

Presently, Malta’s biofuel policies and regulations align with the EU’s Renewable Energy Directive as amended and transposed into Maltese law by virtue of subsidiary legislation 545.43 of the Laws of Malta (RED III), which sets targets for incorporating renewable energy into transportation. Under EU requirements, the share of renewable energy within the final consumption of energy in the transport sector shall be at least 29% or a greenhouse-gas intensity reduction of at least 14.5%, by 2030. This includes contributions from biofuels and renewable electricity, although due to limited mass electrification potential the main contributions for Malta are expected to come from increased biofuels in transport.

Biofuels and bioliquids operations and sustainability criteria are primarily regulated by:

• the Petroleum for the Biofuels and Bioliquids Market Regulations (SL 545.15 of the Laws of Malta); and
• the Biofuels, Bioliquids and Biomass Fuels (Sustainability Criteria) Regulations (SL 545.45 of the Laws of Malta).

The market for the trade and supply of renewable electricity to end users in Malta is primarily influenced by the country’s small size, energy import dependency and centralised energy systems. While electricity generation was liberalised in 2004, the retail electricity supply market has remained highly concentrated with Enemalta retaining its role as the sole major supplier of electricity to final consumers and DSO.

Pursuant to Article 66 of the EU’s Electricity Market Directive 2019/944, Malta was granted a derogation relating to the liberalisation of the electricity supply market. Such derogation was granted for a definite period, and is applicable until 5 July 2027, unless otherwise extended. As a result, Enemalta has been retained as the sole electricity supplier, and effectively enjoys a legal monopoly in terms of electricity sale and supply to end consumers. Enemalta also acts as the sole DSO, while, due to market size, there is no transmission system or TSO.

Enemalta is legally designated as Malta’s sole DSO and thus acts as both supplier and network operator. This is permitted by virtue of a derogation from the unbundling requirements set out in Articles 35 and 43 of the aforementioned Directive prohibiting a network operator TSO or DSO) from carrying out activities relating to supply and generation. In Malta’s case, Enemalta is legally permitted to act as both supplier and DSO. In addition, pursuant to a derogation from Article 6 of the Directive, Malta has no obligation to provide third-party access to its network. Accordingly, save for electricity generation, there is limited open competition along the energy chain.

Malta has minimal infrastructure dedicated to biogas production, with biogas mainly being generated from organic waste through anaerobic digestion. Production levels are currently low, and most of the biogas generated is used onsite (primarily in waste treatment facilities).

Given the absence of a developed market for the trade and supply of renewable heat in Malta, there is currently no dedicated regulatory framework governing the transportation, distribution or commercial supply of renewable heat comparable to those found in jurisdictions operating district heating systems.

Malta has not yet introduced a dedicated regulatory framework governing the commercial transportation, distribution and supply of hydrogen, and there is currently no operational hydrogen market or associated hydrogen infrastructure. The trade and supply of biofuels are principally regulated through the Petroleum for the Biofuels and Bioliquids Market Regulations (S.L. 545.15), which govern, inter alia, the authorisation requirements applicable to market participants. In addition, sustainability requirements applicable to biofuels, bioliquids and biomass fuels are regulated by the Biofuels, Bioliquids and Biomass Fuels (Sustainability Criteria) Regulations (S.L. 545.45).

Guarantees of Origin

The issuance, transfer and cancellation of guarantees of origin (GOs) in Malta are regulated by the Guarantees of Origin of Electricity from High-Efficiency Cogeneration and of Energy from Renewable Energy Sources Regulations (SL 545.44 of the Laws of Malta). The Regulations establish a framework for the issuance of GOs in respect of electricity generated from renewable energy sources and high-efficiency cogeneration. The Maltese GO regime is based on the requirements of RED III and provides a mechanism for certifying the origin of renewable electricity in accordance with objective, transparent and non-discriminatory criteria.

Given Malta’s relatively small electricity market and limited renewable generation capacity, the volume of GO transactions is considerably lower than in larger European markets.

PPAs

Long-term PPAs have been applied in the energy sector for conventional power purchases, but are not yet common practice for RES, due to the centralised nature of the electricity market and the current absence of large-scale renewable energy projects. Historically, Malta’s renewable electricity sector has been driven primarily by feed-in tariffs, net metering arrangements and other government support schemes applicable to small-scale renewable energy installations. Consequently, long-term power purchase agreements (PPAs) have not, to date, played a significant role in the deployment of renewable energy projects in Malta. The future development of utility-scale renewable energy projects, including offshore renewable energy initiatives currently under consideration by the Maltese government, may necessitate the introduction of long-term revenue stabilisation mechanisms capable of supporting project financing and private-sector investment. Given the structure of Malta’s electricity market, in which Enemalta remains the sole electricity supplier and DSO, the commercial framework for future utility-scale renewable projects will need to be developed within the broader context of Malta’s regulated electricity market and applicable support schemes.

The future development of offshore wind and solar farms will need to consider competitive support schemes, contracts for difference, long-term power purchase commitments and other mechanisms designed to promote renewable energy investment. In terms of PPAs, the type and duration of such arrangements will need to be established by agreement with Enemalta, and will need to consider the existing PPA obligations with conventional gas-fired power plant operators, as well as grid connection and electricity dispatch rules in adherence with REWS regulations.

Malta’s geography, limited land availability and dense urbanisation significantly constrain the development of large-scale onshore RES projects. Environmental, planning and social considerations further restrict the availability of suitable sites for land-based RES installations. As a result, Malta’s onshore renewable energy market has historically focused on small to medium-scale solar PV projects, deemed to be the least invasive technology (eg, domestic and small-scale rooftop solar PV installations and building-integrated installations). There are also a few brownfield sites (such as former quarries and landfills) that have been utilised for solar energy installations.

Although solar PV installations have a lower environmental and visual impact than wind energy developments, PV technology is still land-intensive, resulting significant competing land-use (to note that Malta’s developed land coverage is the highest in Europe and amongst the highest globally). In response to these spatial limitations and land-use conflicts, the Solar Farm Policy, originally launched in 2017 and subsequently amended, established the fundamental criteria for guiding the planning, permitting and designing of solar farm development. This policy encourages solar farm development to exploit land in a more efficient manner, with priority given to large-scale rooftops, car parks, industrial areas, end-of-life quarries and landfills.

Nonetheless, Malta’s energy strategy is evolving, and recent years have seen a stronger focus on offshore solar and wind projects. This policy shift reflects the need to adapt to limited land resources and increasing ambitions in renewable energy generation.

Malta’s offshore renewable energy market remains at an early stage of development. However, advances in floating offshore technologies have prompted a strategic shift away from land-based projects and towards the exploration and development of offshore RES potential.

In this nascent stage, the significant focus is on research, planning and feasibility studies. Based on such studies, the government originally published the NPOR in 2023 and issued market consultations in 2024 seeking proposals for offshore solar farms, and subsequently launched a first public call for offshore wind development with an expected capacity of 280 MW to 320 MW. Furthermore, it is anticipated that the development of offshore wind farm projects will be complemented by offshore solar farm projects, in order to support the country’s longer-term decarbonisation and energy security objectives.

Potential Locations

In October 2024, the Energy Ministry identified two potential areas (from the six areas originally identified) as most suitable areas for the possible deployment of floating offshore renewable energy projects. These shortlisted areas are situated off the southern coast of Malta and together cover an estimated area of approximately 330 square kilometres. The selected zones are considered capable of accommodating utility-scale offshore renewable energy developments and are expected to play an important role in Malta’s long-term decarbonisation and renewable energy strategy.

Following the identification of these preferred areas, extensive technical, environmental and spatial data collection exercises were undertaken to support project development and provide prospective investors with the information necessary to prepare robust and commercially viable proposals. These studies have sought to reduce development risk and facilitate the preparation of realistic technical, operational and financial solutions appropriate for Malta’s offshore conditions.

The procurement process commenced on 5 December 2024 through the publication of a PQQ for Malta’s first floating offshore wind project. Since then, the PQQ submission phase has been completed, resulting in three applications from Maltese and international developers and consortia. The project has now progressed to the evaluation stage, during which the technical, financial and operational capabilities of applicants are being assessed as part of a Competitive Dialogue Procedure. Qualified applicants are expected to proceed to the Invitation to Participate in Dialogue (ITPD) stage, to be followed by the submission of Best and Final Offers (BAFOs) prior to the award of the concession. The project is expected to comprise a floating offshore wind installation of approximately 300 MW located within an area intended to form part of Malta’s EEZ and connected to Malta’s national electricity network.

A further significant development occurred in April 2026, when Interconnect Malta launched a tender for metocean surveys relating to Malta’s proposed floating offshore wind project. The scope of the surveys includes the collection of meteorological, oceanographic and environmental data necessary for project design, energy yield assessment and financing purposes. The metocean campaign is intended to reduce development risk, improve the accuracy of technical and financial modelling and support the subsequent phases of the offshore wind procurement process.

Collectively, such developments highlight Malta’s transition from policy formulation and preliminary market engagement towards more advanced project development activities.

Development Considerations

The following considerations should be noted.

• Permits and approvals – offshore projects are expected to require a range of environmental, planning and sector-specific approvals. Depending on the nature and scale of the project, this may include environmental assessment procedures (including EIA screening and, where applicable, an EIA), planning authorisations, marine and navigational clearances, and other regulatory approvals from the relevant Maltese authorities, including ERA and the PA.
• Marine spatial planning and environmental constraints – offshore developments must be carefully integrated with existing marine uses and environmental objectives. Site selection and project design are expected to take into account ecological sensitivities, protected species and habitats, fisheries, maritime transport corridors, defence considerations, telecommunications infrastructure and other competing uses of marine space.
• Grid connection and transmission infrastructure – the availability of grid connection infrastructure represents a critical consideration for offshore renewable energy projects. Current government plans envisage the connection of offshore generation facilities to Malta’s national electricity network through dedicated offshore transmission infrastructure, including offshore substations and export cable systems. Co-ordination with Enemalta, as Malta’s sole DSO, and other relevant authorities will therefore be essential.
• Meteorological and oceanographic conditions (metocean) – the successful deployment of floating offshore wind technology is highly dependent on accurate site-specific wind, wave and oceanographic data. The metocean survey programme is intended to collect detailed meteorological, oceanographic and environmental information at the two shortlisted offshore sites from which the resulting dataset is intended to support future project design, energy yield assessment, financial modelling and project bankability.
• Floating technology and deep-water conditions – owing to the deep waters surrounding the Maltese Islands, conventional fixed-bottom offshore wind technology is generally considered less suitable than floating offshore wind systems. Consequently, Malta’s offshore renewable energy strategy is principally focused on floating technologies capable of operating in deep-water environments.
• Maritime jurisdiction and EEZ areas – Malta’s offshore renewable energy strategy is closely linked to the development of offshore projects beyond territorial waters within maritime zones intended to form part of Malta’s EEZ. The current offshore wind procurement process is based on two identified offshore development sites located within such areas, and future offshore renewable energy deployment will continue to depend upon the legal and regulatory framework governing Malta’s offshore jurisdiction and renewable energy activities.

No sector specific project finance regime applies to RES projects in Malta, and financing structures generally follow conventional project finance principles. The project company (usually a special purpose vehicle) will need to have the appropriate qualifications, financial standing and relevant project delivery experience, while the project finance structure will generally be without recourse or with limited recourse.

Potential risks that apply to renewable energy projects include:

• permitting risks – delays or denials in obtaining planning, environmental or other regulatory approvals, which may have an impact on project timelines;
• grid constraints – the availability of connection capacity, reinforcement requirements, offshore transmission infrastructure and network constraints may affect project viability and timing, as well as potential issues with grid congestion and curtailment, or delays in securing grid connection agreements from Enemalta;
• EEZ areas – offshore projects located within maritime areas intended to form part of Malta’s EEZ remain dependent on the evolving legal, regulatory and permitting framework governing offshore renewable energy activities, which also includes potential issues of third-country contestation of designated EEZ areas; and
• interface risks – instances where multiple construction and supply contracts are involved could lead to increased co-ordination complexity and create delay, cost-overrun and performance risks.

Financiers will typically require comprehensive security over project assets and contractual rights, including key project agreements, concession rights, grid connection arrangements, project accounts, insurance proceeds and any applicable offtake or revenue support arrangements.

Support for solar PV is primarily regulated by:

• the Feed-in Tariffs Scheme (Electricity Generated from Solar Photovoltaic Installations) (SL 545.27 of the Laws of Malta);
• the Competitive Bidding Rules for Renewable Sources of Energy Installations (Capacity from 40 kW up to less than 1,000 kW) Regulations (SL 545.32 of the Laws of Malta); and
• the Competitive Bidding Rules for Installations Producing Renewable Electricity from Renewable Energy Sources Regulations (SL 545.39 of the Laws of Malta).

Renewable energy support in Malta is primarily provided through a combination of operating aid and capital grant schemes. Under the 2026 renewable energy support framework, residential and non-residential photovoltaic installations below 40 kWp that do not benefit from a grant may qualify for a FiT of EUR0.15/kWh guaranteed for a period of 20 years. In parallel, government grant schemes continue to support investment in photovoltaic installations and battery storage systems, with dedicated funding allocated for both technologies. In 2026, particular emphasis has been placed on battery storage deployment as a means of enhancing grid flexibility and facilitating increased renewable energy penetration.

Malta’s support mechanisms for larger renewable energy projects have increasingly shifted towards competitive bidding procedures. In 2026, government ITBs provide long-term revenue support for installations above 40 kW through competitive allocation mechanisms, including dedicated categories for installations between 40 kW and 1 MW and separate arrangements for projects exceeding 1 MW. Successful bidders are awarded long-term support contracts based on competitive pricing criteria.

Accordingly, while FiT and grant schemes continue to play an important role for residential and small-scale commercial installations, larger renewable energy developments are increasingly supported through competitive procurement and bidding mechanisms administered by the Maltese authorities.

Generally, the cessation of activities, decommissioning and disposal of renewable energy installations are governed by environmental regulations and specific project permits issued during the development phase, in line with sustainability, recycling and ecological restoration standards.

At present, Malta does not have a dedicated statutory regime specifically regulating the decommissioning of offshore renewable energy installations. Nevertheless, decommissioning obligations are expected to be addressed through the environmental and permitting framework applicable to the relevant project, together with the contractual arrangements governing the award and operation of offshore renewable energy concessions.

For large-scale offshore renewable energy projects, environmental assessment procedures are expected to address decommissioning obligations, including requirements concerning site restoration and the removal of infrastructure at the end of the project life cycle. While such potential requirements have not yet been tested in practice, Malta’s NPOR adopts a life cycle approach to offshore energy development and emphasises the need to minimise the adverse environmental impacts throughout the construction, operational and end-of-life phases of offshore projects. Large-scale offshore RES projects are therefore expected to include clauses in their contracts for decommissioning and site remediation, reflective of EU best practices.

Malta’s renewable energy policy is expected to undergo significant developments over the coming years, particularly in relation to offshore renewable energy and the wider decarbonisation objective. Building upon the NPOR, the government continues to advance the regulatory, environmental and technical framework necessary to facilitate the deployment of floating offshore renewable energy projects, particularly offshore wind and, potentially, offshore solar installations within Malta’s maritime zones. Concurrently, strategic environmental assessment processes, site identification exercises and offshore data collection programmes are being undertaken to support future project development and investment opportunities.

Malta aims to achieve a 25% renewable energy share in its energy mix by 2030 as part of its national goals, while aligning with the EU’s broader climate neutrality goals by 2050. To meet these objectives, Malta is expected to continue its investments in renewable energy infrastructure and policy reforms, with a particular focus on offshore development, energy storage solutions, demand-side management and grid flexibility. All these elements will require significant investment and regulatory support to accommodate the intermittent nature of significant RES development in the run up to 2030 and beyond.

Malta is also expected to continue aligning its legislative and regulatory framework with evolving EU energy and climate legislation. Further measures aimed at streamlining permitting procedures, encouraging renewable self-consumption, facilitating investment and ensuring continued access to EU funding mechanisms are likely to play an increasingly important role in supporting the country’s long-term energy transition.