an interview with Debbie Schembri, Vice President; Malta Developers Association
Eurostat figures of 2019 show that Malta is 2.8% behind its 2020 target.
And yet Malta Developers Association Vice President Debbie Schembri argues that, contrary to popular belief, the take up of Renewable Energy solutions is higher than one may think.Debbie Schembri is not afraid to acknowledge that Malta is indeed behind schedule in certain areas where renewable energy is concerned. But she is just as quick to point out that these figures also include areas such as transport and construction waste. It is therefore not totally accurate to say that targets are not being met. The sector has been given the tools and the stakeholders are doing their utmost to ensure that thy are well leveraged. However, Ms. Schembri explains, the commercial sector is still being met with some challenges, and this need to be rectified.
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Despite progress being registered within the Commercial sector, there are two major challenges that need to be faced. One is the available space to install solar farms – these are generally installed on quarries and farms – the latter are usually locations owned by the Lands Department but are managed by tenants. I ask if implementing such setups at sea is an option seeing we are surrounded by it. Ms. Schembri explains that it could be a possibility but the sea has many elements that can work against such a setup – salt water and weather conditions come to mind. Yet, solar farms on rivers are being implemented so solutions for sea solar farms could happen in the near future.
The second challenge is the sheer number of stakeholders involved, thus leading to delays in implementation. The Lands Authority, Enemalta, as well as the Regulator for Energy and Water Services (REWS) must individually process each application under their separate criteria, executing their various processes so as to conjointly ensure that the permits are issued according to law, and that the investment makes financial sense.
Ms. Schembri tells us that the Government is totally supportive of these initiatives, the local timeframes are high: “a local project could take anything between two to three years to finalise when compared to four to five months for projects undertaken abroad”.
it is a win-win situation for the government and for Maltese citizens, environmentalists and investors alike
The domestic situation is different, and Malta has made strides in this respect. The Government has been most helpful in this regard and has continuously provided grants even when European Union Funds were exhausted. The Government’s intention is to continue prioritising renewable energy solutions and whilst currently no grants are available, it is envisaged that new schemes will be launched in the very near future. This shows the importance of this sector, which in a short period of time has generated employment to thousands. Moreover, investment in such solutions directly reduces our energy dependency on other countries. “Thus, if work is carried out well it is a win-win situation for the government and for Maltese citizens, environmentalists and investors alike.”
So all in all, domestic take up has been high, and commercial take up has been positive – healthy competition prevails amongst investors, and the banks are actively chasing clients to invest; the sale of the derived ‘produce’ is guaranteed on a fixed amount of money for a fixed set of years,
and the risk element is hence low. In terms of commercial take up, projects take long to materialise also due to the bureaucracy mentioned earlier on so “the MDA deems it imperative that the Government creates a one-stop shop so as to facilitate the procedures required.”
Modern technologies allow for a wide set of solutions which are efficient yet drastically reduce electricity consumption.
The previously mentioned report further states that the growth of the renewable sector in Malta is limited by planning policies which cater “for the increased demand for accommodation” and encourages the redevelopment of two or three-storey buildings into multi-storey apartment blocks. “This leads to an increase in the frequency and depth of shadowing of rooftops, which further reduces the number of buildings considered suitable for PV installations – is this really the case, I ask?
Ms Schembri explains that, as the name implies, solar panels require sun, so an ideal environment needs to be created. If there are high buildings next to a property there is a risk that the investment might not be totally beneficial. But, like with all investments one has to assess the risks on a case by case basis. If for example there is knowledge of apartments being constructed in the near future which would impinge upon one’ solar ‘catch’, one should wait for completion and then judge if the situation is ideal to have panels installed.
the MDA deems it imperative that the Government creates a one-stop shop so as to facilitate the procedures required
A similar approach is taken for commercial setups: “if the streetscape wouldn’t have changed in a while then it is unlikely it would for the foreseeable future – and investment then takes place. And despite not producing any visual embellishment to the landscape, these solutions are boosting one’s quality of life by reducing C02 emissions within the environment.”
So is it safe to say that the Malta Developers Association and the construction industry are in favour of adopting renewable energy features going forward? Ms. Schembri argues that it is actually the very people who invest in building who are mostly interested in safe guarding their buildings’ environment in all manners possible – and this includes applying energy saving features. The success of a building or construction wholly depends on the quality of the building and its surroundings. And despite many people thinking differently, these solutions have become a top priority for developers in order for them to be competitive in such a competitive market. The Association has always believed in Renewable Energy. It is the way forward and MDA has been very vocal to the industry about it.
But being vocal is not enough, she continues. The Association was instrumental in creating a structure whereby the implementation of systems such as photovoltaics become accessible to all households through appropriate financing terms. An agreement was put in place with Bank of Valletta whereby domestic purchases of photo voltaic systems is facilitated by means of monthly instalments, done over a period of three years. This process would be triggered by the service provider who would also be covering the interest payments required by the bank. Ms. Schembri emphasized that service providers do not and should not increase prices to cover interest. Although this system has reduced the short-term profit margins, the long-term benefits are being reaped since many households have taken up these systems.
A project’s success is also dependant upon the suitability of its environment to its customer market.
In terms of available technology, do you feel that this is adequate without having the need to invest exorbitant amounts to cater for the large amount of construction projects that are being carried out on the island? Ms. Schembri explains that the sector has access to avant-garde technology. There are many solutions that include photo voltaic systems, solar water heaters and heat pumps – the latter is relatively new to the market but it is a plug and play installation, likened to a refrigerator in terms of space required. These solutions are efficient and drastically reduce electricity consumption.
if the streetscape wouldn’t have changed in a while then it is unlikely it would for the foreseeable future
My final question is whether one could ever reach zero emissions. The response is, in no certain terms, that zero emissions are not possible – because even whilst we breath we are releasing emissions. However Ms. Schembri is positive that with the unwavering support of the Government and the prospect of everyone pulling the same rope, keeping updated with the latest technologies and garnering the financial support to invest in these, then yes, Malta can achieve good results in the Renewable Energy sector.
Notwithstanding the fact, on paper, we are below our targets for renewable energy, Ms. Schembri emphasizes that these targets are not totally realistic and at times next to impossible. One has to consider Malta’s surface area which limits the possible installation of commercial solar farms and she reiterates, that whilst some solutions are available yet delays hinder progress at times. Yet, despite all this, the industry stakeholders look positively at such solutions and this can be seen from the change in developer’s mindsets in the recent years.
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