Energy and renewables
Friends of the Earth Malta welcomes the funds allocated in the Budget 2010 for environmental projects and alternative energy. However Friends of the Earth Malta (FoE Malta) states that in some aspects the budget was lacking in long term social and environmental vision.
The utility charges penalise basic consumption. Government should protect basic consumption and penalize waste using the polluter-pays-principal as a guiding concept and a scientific study on energy consumption as the determining mark by which the subsidy is regulated.
FoE Malta is aware that we have failed once more to adopt a sensible version of different day and night rates, in order to encourage heavy users to move electricity use away from times of peak demand. The difference in the rates is too small to be of interest. By including the polluter-pays principle and a sensible version of different day and night rates, the government will empower citizens to be part of the decision-making process by encouraging household members and businesses to be more aware of their energy consumption.
In Budget 2010, much hope is placed in Smart Meters. The introduction of smart meters has the full support of FoE Malta. If implemented in the correct way this could have a positive influence on how we use our energy resources. An excellent technological fix such as this one will nonetheless be useless unless the general public is familiarised with the system and the benefits it can offer. This could thus be an opportunity for cooperation between NGOs and government.
More subsidies have been provided for photovoltaic panels for domestic and larger installations. In addition, the eco-fund mentioned in the Budget 2009 has vanished from Budget 2010. This fund could have served to provide an improved feed-in rate to incentivise the uptake of domestic and larger photovoltaic systems. It is also not clear what happened to this proposal during 2009 and how much revenue was collected from it.
The restrictions on the purchase of solar water heaters discriminates in favour of Gozitans with the excuse of ‘Eco-Gozo’. Whilst acknowledging that last year’s uptake was far from ideal, FoE Malta fails to see how the new scheme is an improvement over the 2009 scheme. The suitability of models on offer and the standard of installation and yield as well as the capacity of Gozitan wages to purchase solar water heaters are measurables which should be studied in detail before making this decision.
On the subject of feed-in tariffs, a lot more could have been done in a bid to integrate social and environmental concerns in a more constructive way. As experience in other countries has shown, an attractive feed-in rate exerts a powerful incentive where the consumer can see quite clearly that it is putting money in their pocket. On the other hand, capital subsidies tend to be mopped up by the distributors.
Wind energy was not given enough importance in Budget 2010, with only vague remarks on Gozo as a possible site for wind farms. The measuring mast installed in only one location is not sufficient for studying the feasibility of wind supply. The analysis from this mast must be done over a two-year period. If Sikka l-Bajda is found to be an ineffective location, studies will have to start from scratch, two years from now, thus procrastinating the use of wind energy for Malta.
In the past government has mentioned investing in gas for our energy supply. Gas remains a cleaner and more efficient energy supply.
Friends of the Earth Malta states that it is encouraged by the inclusion of environmental friendly incentives in Budget 2010, however Malta sorely lacks a national energy plan. Friends of the Earth Malta looks forward to contributing to and seeing positive change in action.