2017 National Energy Efficiency Action Plan

The National Energy Efficiency Action Plan (NEEAP 2017), in line with Directive 2012/27/EU was presented by the Agency to the European Commission in April 2017. It takes note of the various actions taken at national level, and reviews the indicative 2020 national target notified to the EU Commission, and the actions necessary to achieve the obligatory cumulative end-use energy savings target.

The NEEAP 2017 adjusted Malta’s indicative target for 2020 as 822,903 toe in primary energy consumption.  The Plan also projects a final energy consumption of 633,875 toe in 2020.

In brief, NEEAP 2017 highlights the following measures and/or actions to increase energy efficiency and reduce energy demand:

  • Electricity tariffs designed to promote energy efficiency among consumers;
  • Large enterprises are to perform high quality energy audits every four years;
  • Non-SMEs encouraged to sign voluntary agreements with the Agency to pursue energy efficiency measures;
  • Smart metering of electricity to continue also with the aim to empower consumers to manage their energy consumption intelligently;
  • The inclusion of renewable energy in households in the drafting of the ‘Minimum Energy Requirements for Building Guidance’ and the ‘Nearly Zero Energy Building Plan’;
  • Residential schemes continuation till 2020, i.e. grants for the installation of photovoltaic systems, solar water heaters, roof insulation, double glazing, and water-to-water heat pumps;
  • Actions undertaken by Transport Malta to improve the efficiency in transport and highlights the importance of the ongoing ‘scrappage’ scheme deemed critical for the rejuvenation of the Maltese car fleet; and
  • Upgrading of the national electricity distribution network.

Read more about it here.

Primary Energy Factor

A primary energy factor (PEF) connects primary and final energy. The primary energy factor for electricity indicates how much primary energy is used to generate a unit of electricity.

Primary energy is made up of:

  • Fuels used by conventional power generation plants
  • Electricity generated by renewable energy sources (namely PV and WtE plants)
  • Imports of electricity through the interconnector

The PEF is calculated by dividing the primary energy with the electricity consumed by final energy consumers, that is, the units billed by the electricity utility. Based on projected electricity generation and consumption figures for the period 2018-2020, the proposed PEF for Malta is 2.0.

Energy Auditing

In line with ISO 50002, an energy audit comprises a detailed analysis of the energy performance of an organisation, equipment, system(s) or process(es). It is based on appropriate measurement and observation of energy use, energy efficiency and consumption. Energy audits are planned and conducted as part of the identification and prioritization of opportunities to improve energy performance, reduce energy waste and obtain related environmental benefits. Audit outputs include information on current use and performance and they provide ranked recommendations for improvement in terms of energy performance and financial benefits.

The energy audit shall be conducted according to the following principles:

  1. The audit is consistent with the agreed energy audit scope, boundary and audit objective(s);
  2. The measurements and observations are appropriate to the energy uses and consumption;
  3. The collected energy performance data are representative of the activities, processes, equipment and systems;
  4. The used data for quantifying energy performance and identifying improvement opportunities are consistent and unique;
  5. The process of collecting, validating and analysing data is traceable;
  6. The energy audit report provides energy performance improvement opportunities based on appropriate technical and economic analysis. (Appropriate analysis is consistent with the energy audit scope and sufficiently detailed to allow for efficient decision making).

Guidance Note on the Carrying Out of 2019 Statutory Energy Audit by non-SMEs

Regulation 10 of LN 196 of 2014 makes it mandatory for, and the responsibility of, non-SMEs registered and doing business in Malta to carry out energy audits to the established quality level and frequency. The next audit is due by December 2019.

This guidance note is addressed primarily to enterprises which qualify or are near qualifying for the statutory energy audit to assist in the discharge of this responsibility. It is obviously also very relevant to auditors who may be entrusted with the carrying out of such audits. This note supersedes that issued in 2015.

It benefits from and builds upon the experience of the first audit program of 2015.

To access the full Guidance Note, click here.

Regulation 16(6) of Legal Notice 196 of 2014: Energy Efficiency and Cogeneration Regulations, 2014

In line with Regulation 16(6), project promoters are required to carry out a cost-benefit analysis in the case of an installation with a rated thermal input greater than 20 MW. The cost-benefit analysis shall include an economic analysis covering a financial analysis reflecting actual cash flow transactions from investing in and operating individual installations. Projects with positive cost-benefit outcome are those where the sum of discounted benefits in the economic and financial analysis exceeds the sum of discounted costs (cost-benefit surplus).

In order to guide relevant project promoters, Malta has published the following guiding principles. The full document can be accessed here.

Energy Performance Contracting

The Energy Efficiency Directive 2012/27/EU defines ‘Energy Performance Contracting’ as a contractual arrangement between the beneficiary and the provider of an energy efficiency improvement measure, verified and monitored during the whole term of the contract, where investments (work, supply or service) in that measure are paid for in relation to a contractually agreed level of energy efficiency improvement or other agreed energy performance criterion such as financial savings.

The Agency in February 2017 launched a public consultation on Energy Performance Contracting. The Public Consultation document explained what is meant by Energy Performance Contracting, the European Code of Conduct for Energy Performance Contracting and provides information on the International

Performance Measures and Verification Protocols. The consultees were asked for input to queries raised in the end of the document. The Agency summarised the ten replies to the public consultation in a Summary of Responses document which included input from academics in the engineering sector, the energy Regulator, the buildings industry Regulator, energy service companies, the Distribution System Operator, an Energy NGO and the Malta Business Bureau (which are the main stakeholder (industry and hospitality) stakeholder as regards EU affairs).

Further information on Energy Performance Contracting, including sample contracts, can be obtained through the following links to international websites: Transparense and Energy Services Coalition.

The Energy Efficiency Partner Initiative (EEPI)

This initiative was set up to encourage non-SMEs to invest further in energy efficiency. Through the initiative, organisations are being encouraged to sign a voluntary agreement with the Agency, committing to implement measures that increase energy efficiency on an annual basis. The cumulative savings expected to be achieved through this measure are 149GWh.  The 25 signatories to the EEPI are Actavis  Malta., AX Holdings Ltd., Baxter Trading Co. Ltd, Besedo, Bank of Valletta,  Carlo Gavazzi (Malta) Ltd., De La Rue Currency and Security Prints, D.H.L., Eden Leisure Group,  Elepac Ltd., EneMalta plc., Foster Clark Products Ltd., G4S Security Service (Malta) Limited, Hotset (Malta) Ltd.,  HSBC Bank p.l.c., Malta International Airport, Malta Freeport Terminals, Methode Electronics Malta, MSC Technologies, Playmobil Malta, Simonds Farsons Cisk plc, ST Microelectronics, Toly Products Ltd., Trelleborg Sealing Solutions (Malta) Ltd., and Water Services Corporation.

Investing in Energy

The Investing in Energy Project is an outreach project through a public-private partnership between The Energy and Water Agency, the Malta Chamber of Commerce, Enterprise and Industry, with co-financing from the Regulator for Energy and Water Services and the Ministry for the Economy, Investment and Small Business. The project duration is from January 2017 till December 2018.

The project aims to bring about an improvement in energy efficiency within SMEs falling within NACE codes C (Manufacturing) and G (Wholesale and Retail). It also aims to generate needed data and information to inform policy decisions and actions with respect to the 2030 Climate and Energy Plan.

One of the main objectives of the project is to carry out Level 1 energy audits amongst medium size enterprises. The audits are being done for free by the in-house certified auditors of the Energy & Water Agency.

The project includes also several informative workshops on energy efficiency topics aimed to increase national knowledge and capacity and also a set of business breakfasts targeted at both SMEs and non-SMEs, where they are able to share best practices and network between them. Through this project a socio-demographic study is also being commissioned.

Concerted Action for the Energy Efficiency Directive project

The Agency participates in the Concerted Action for the Energy Efficiency Directive (CA EED) project. The project was launched in spring 2013 in order to support the effective implementation of the Directive in all EU Member States and Norway. By providing a trusted forum for exchange of experiences and collaboration, the CA EED helps countries learn from each other, avoid pitfalls and build on successful approaches when implementing the Directive.

Odyssee-Mure project

The Agency participates in the Odyssee-Mure project which is supported by H2020 programme of the European Commission. The project relies on two complementary internet databases that are regularly updated by the network of national teams:

  • Odyssee that contains detailed energy efficiency and CO2-indicators with data on energy consumption, their drivers (activity indicators) and their related CO2-emissions.
  • Mure that contains a description, with their impact evaluation whenever available, of all energy efficiency measures implemented at EU or national level.

The general objective of the project is to provide a comprehensive monitoring of energy consumption and efficiency trends as well as an evaluation of energy efficiency policy measures by sector for EU countries and Norway. A network of 37 partners from 31 countries, participate in the Odyssee-Mure project, usually national Efficiency Agencies or their representatives within the European network of energy efficiency agencies.

More information available on the Odyssee Mure official website.