From oil to gas : an analysis of Malta’s power sector transition with regard to CO2 emissions, the integration of renewables, and the role of energy storage

Abstract

Malta’s electricity generation is based on heavy fuel oil and gas oil. However, profound changes are underway as the power sector is being shifted to natural gas and an HVAC interconnector to Sicily will connect the hitherto isolated Maltese electricity grid to Europe. Within this study projections for supply and demand have been compared, and the power sector transition has been reviewed with respect to carbon dioxide emissions and economic impact. The latter included a review of Sicilian electricity prices to investigate opportunities of electricity trade through the interconnector. A model has been built to compare various scenarios of electricity generation and import/export levels for different years. While the Maltese power sector transition will reduce overall national carbon dioxide emissions below 1990 levels, achieving high renewable energy shares will be challenging. Though Malta has managed to reach the two percent intermediate renewables share target for 2012, the national renewable energy action plan needs to be revised, in part due to the impact of the new fossil fuel setup. In turn, energy storage options might facility the way towards the further rise and integration of renewable energy integration. The modelling results indicated that investment into storage rather than generation capacity might be the better option once the older generation capacity at Delimara power station will retire. Seawater pumped hydro storage and ocean compressed air energy storage have been identified as two of the options that would fit Maltese settings.