Seminar: SOLAR ENERGY MARKETS: MALTESE AND GERMAN EXPERIENCES TOWARDS 2020

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1 Seminar: SOLAR ENERGY MARKETS: MALTESE AND GERMAN EXPERIENCES TOWARDS 2020 THE RENEWABLE ENERGY MARKET IN MALTA: PROSPECTS AND CHALLENGES, MR. MARK BAJADA, VICE-PRESIDENT, RENEWABLE ENERGY ASSOCIATION MALTA 5 th April 2011

2 REAM Who is REAM? The Renewable Energy Association Malta was setup in October 2009 REAM has an appointed committee that meets regularly to discuss issues related to RES. Intervene and discuss with the authorities. REAM consolidates members ideas and increases lobbying with authorities to push forward the ideas of how Malta can benefit from RES.

3 REAM Objectives REAM was formed to assist its members in: quality products certifications training

4 What are the factors effecting RES growth? With the current turmoil in the middle east highly reflecting into a new era of price hikes and with Japan that brought to light the reality of danger with nuclear power stations has confirmed that RES is surely one of the most reliable and effective source of energy that blends with nature and has no side effects or uncontrollable factors. Oil is becoming an uncontrollable source affecting the global economy and resulting in instability. RES has proven to be a reliable source of energy that gives stability to the economy together with respect to humanity and nature.

5 RES Direct Stakeholders in Malta Due to the rapidly expanding RES market in Malta several authorities had to adopt to this change. Namely: MEPA (Malta Environment and Planning Authority) - had to draft new policies to integrate RES. MRA (Malta Resources Authority) obtained national and ERDF grants for the general public to install PV and SWH systems. MRA has also been instrumental for the setting up of RES grid connection and related technical issues.

6 RES Direct Stakeholders in Malta Malta Enterprise obtained grants and introduced tax incentive schemes for the commercial/industrial entities to adopt RES solutions. Enemalta - has adopted the necessary changes to include RES grid connection. Some technical issues are still limiting the RES installations especially in remote areas. We understand that due to several changes required in introducing RES it would take some time, yet it is highly recommended that this is done in a timely manner otherwise these will result in loss of interest/investment.

7 RES SITUATION UNTIL TODAY Solar Water Heaters: The scheme with means test has limited the swh industry as the procedure was disclosing several information and the general public approach was not good Not enough promotion/information on the key benefits of swh

8 RES SITUATION UNTIL TODAY Photovoltaic Systems: The 50%, 3000 capped scheme created a very high interest in the household sector which unfortunately limited the investment to circa 6,000 to get the maximum benefit from the grant. The application process requested only the presentation of a quotation which again in the majority of the situations these where not followed by a site visit and when the grant where issued, there were several installation problems due to space limitations and shading.

9 RES SITUATION UNTIL TODAY Photovoltaic Systems: Timelines were established for the installations to take place set at 4 months from approval of grant, this timeline was very short for the installation of nearly 2,000 systems. Not enough information to the general public in the technologies available. Instead of using grant schemes as a stepping stone to use more RES the ERDF grants from MRA are imposing a limitation that will not allow the owner to add on more PV modules to the systems, otherwise grants will be subject to recovery if the system is found to be modified.

10 RES SITUATION UNTIL TODAY Wind: Policy for the installations the perception of applying to MEPA for the installation of wind turbines could slow the interest in the installation of wind turbines

11 How can Malta achieve 10% by 2020? New buildings must have solar heaters integrated in their design as a pre-requisite before getting building permit Solar heaters should be more widespread though achievable schemes. Recently a new grant scheme for solar water heaters was announced. When new schemes are launched we recommend that prior to application closing date info sessions are made to explain the key benefits to the investors.

12 How can Malta achieve 10% by 2020? A FIT that incentivise the general public to invest in RES thus minimising a lot of after installation checks, this will streamline quality of modules, efficiency and aftermarket. Simple application process Less time to issue the ok grants approvals from both MRA & Malta Enterprise More info sessions to the general public and stake holder, eg agriculture, manufacturers etc- how they can benefit from tax schemes and investment schemes

13 How can Malta achieve 10% by 2020? Utilise the existing roofs and space available for PV installations Product quality and durability Increase awareness of RES in schools and local councils Create space for installations of PV MEPA new building permits should impose the use of RES There are several issues that are constantly discussed with local authorities, some of these issues are national and others are of an EU nature/directives.

14 Thank You Mark Bajada Vice President REAM