Current Affairs

European Commission approves full project for power station – Minister Mizzi welcomes decision

After two years of investigations the European Commission has approved the financing for the new gas power station project at Delimara.

The European Commission has concluded that Malta’s plans to pay Electrogas, the Delimara plant operator, for the supply of electricity to Enemalta, are in conformity with EU regulations on state aid.

Electrogas, the company chosen on the basis of procedure of competitive offers by Enemalta, will now be benefiting from these funds to generate, distribute and provide electricity in Malta through the new Delimara plant. These funds, for which Malta had applied in June 2016, will ensure a stable income for Electrogas, which the Commission said conforms with that of similar projects. On this basis the Commission concluded that the company would not be over-compensated for the services it will be providing.


The project includes the development of a unit for liquid natural gas storage on a liquid surface, and also a plant for electrical energy from gas. The main aims of this project are: to reduce electricity tariffs, to reduce environmental damage through the production of energy, and to ensure the safety of the provision.

In a comment to Minister Konrad Mizzi welcomed with satisfaction the Commission’s decision in approving all aspects of this project, adding that the contracts would be published within a few weeks.

Minister Mizzi said the European Commission looked into all aspects of the project, and examined closely the competitive process of purchase and the process of procurement for the choice of Electrogas. The Commission, the Minister stated, also examined the need for this project and, he added, reached the same conclusions as Government.  Documents and all contracts were also examined, including the power purchase agreement for the purchase of electricity, the gas supply agreement, the implementation agreement and the security of supply agreement. Minister Mizzi also stated that the Commission had praised the project for its aims.