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As for photovoltaic sources, the price is still very high at 14c per kilo-watt hour, while Enemalta is charging 4/5c per kilo-watt hour. "If we get to the level Cyprus has of the use of photovoltaic sources, we will be taking away four per cent of the need to generate electricity from the power station."
Speaking in Parliament during the second reading of the bill amending the Malta Resources Authority Act, Mr Zammit said that Bio-Mass Energy, extraction methods have already been installed at Maghtab, and if better invested 1.6 per cent of energy may be taken from this, he said. By 2020 our aim is to have 20 per cent of all energy production coming from renewable sources, this so as to conform with European standards.
The authority is also looking into the liberalisation of the internal fuel market, a job that has undertaken much preparation, and study, so as in the weeks to come, the market will be ready for liberalisation. "It is a huge challenge that requires synergetic cooperation from all stakeholders," the minister stressed.
The proposed amendments are there so as to strengthen the authority's regulatory ambit, most especially with regard to installations particularly those of fuel; safety; sewage filtering; monitoring and fuel quality. It will also undertake dispute resolution within the sector, and the penalisation, both civil and criminal, of breaches of its directives.
He opened the parliamentary debate on the Malta Resources Authority, explaining that in anything it does, the authority consults with all bodies and other sectors involved so as to ensure efficiency.
He highlighted its functions, which include regulating the operation and distribution of energy and water. It also has the responsibility to issue licences to those who operate within the sector, and set the basis for a competitive market. Safety is also within its remit.
The MRA also provides information to consumers, as well as promotes efficiency, such as for instance, the subsidy on energy saving household goods. It sees to the establishment of prices, and to the setting up of guidelines for the safeguarding of the environment, for instance with regard to quarry management and the water table.
As for the work currently undertaken by MRA, the minister mentioned its issuing of an energy policy - that took on a wide consultation with all stakeholders, and which is currently being fine tuned so as to conform with EU standards. It highlights and studies renewable sources of energy. The MRA is also undertaking studies as to the cost effectiveness of the interconnection with the Central European Grid for natural gas provision.
Mr Zammit went on to illustrate the situation regarding energy resources, wherein he said that it is hoped that in the future, Malta will be fully dependent on renewable sources of energy, providing it is cost effective. Yet he did emphasise that there are constraints.
Roderick Galdes, MLP's main spokesperson for the environment and national patrimony, elaborated about how the most important amendment to the bill was that which takes the price fixing competency away from Enemalta for fuel, and the Water Services Corporation for water, and gives it into MRA.
"One hopes that the trend of arbitrary price fixing will in this way be curbed, so as to have a fair and competitive price of resources." What is disappointing however, is that factored into this price is the inefficiency of these bodies. MRA should not only see that the price is just, but also look into the efficiency and work method that is undertaken, he continued.
Regarding liberalisation of fuel, Mr Galdes is worried about the fact that Enemalta already makes losses. He wondered whether with liberalisation it will continue to make losses, or even close down.
Treatment plants are being built, and 90 per cent of sewage is water which if siphoned may be re-used, yet there is no policy upon this matter, he said. Apart from giving light to the need for training that should be undertaken by MRA personnel so as to be able to handle the new competencies bestowed by the proposed amendments, Nationalist MP Michael Asciak drew attention to certain aspects of the discussion.
The over consumption of hydro carbon energy, for one, is creating two particular problems, he said, the first being the fact that reserves of oil are being depleted and there is also the fact that the burning of these hydro carbons emits particulate matter into the air, producing greenhouse gases, which in turn is leading to severe climate change. This means critical problems for us in Malta, he feared, as the rise in water levels due to the melting of the polar ice caps will mean that "most of our coastal villages will be flooded in water."
True, there is the Kyoto Protocol to which its signatories must regulate their hydro-carbon consumption, but it is "too little too late", Dr Asciak felt. Countries like the US and China do not abide by the Protocol, although there are some slight shifts, as the EU and G8 are exerting pressure.
The Nationalist MP was particularly concerned about developments in technology leading to a decrease in the size of particulate matter. "Before there were medical problems related to breathing, but now this matter is being absorbed into the blood and more severe medical consequences are being created."
Wind turbines are extremely cost effective, but they have drawbacks such as the need of vast expanses of land, noise pollution, and skyline aesthetic distortion. There is also wave energy, which like in Australia, Malta could perchance make use of, Dr Asciak said.
Labour's main spokesperson for infrastructural services Joe Mizzi said that MRA failed to come up with a resource plan for the country, as it failed to come up with an adequate plan with regards to energy production and use. "Energy is the ingredient which makes a country poor or rich." The price of energy is reflected in everything.
Mr Mizzi said EU membership has furthermore highlighted that Malta is not competitive within this market. "What did this authority do regarding the surcharge to electricity? It was utterly silent for over seven years." He said the authority was supposed to regulate prices, protect the consumer, and install a plan for energy, but he again felt it had done none of this.
The parliament's discussion time being up, the debate is set to continue next Monday. Mr Mizzi remains in possession.
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