Policies in Malta

Malta’s updated NECP outlines its strategy to achieve climate neutrality by 2050 while contributing to the EU’s 2030 climate goals. Despite its small size and isolation, Malta commits to reducing greenhouse gas emissions by 19% in non-ETS sectors by 2030 (compared to 2005) and increasing the renewable energy share to 25%. The plan focuses on solar PV expansion, offshore renewables, and energy storage, alongside a second electricity interconnector with Italy.

On energy efficiency, Malta promotes building renovations, new standards for energy performance, and incentives for efficient technologies. For energy security, diversification, battery storage, and infrastructure upgrades are key priorities. The plan also emphasises transport decarbonisation, including widespread EV adoption, free public transport, and electrification incentives.

Malta’s legislation covers all aspects of the electricity market—from supply, grid operations, and regulation to sustainability, renewable energy integration, and strategic planning. Below is a structured overview of the core legal instruments shaping Malta’s energy landscape.

Electricity and Grid Operations

1. Electricity Supply Act, 1994 (Cap. 536)
2. Electricity Supply Regulations (S.L. 545.01)
3. Electricity (Market) Regulations, 2020 (S.L. 545.13)
4. Energy Networks (Grid Development) Regulations, 2013, updated 2021
5. The Grid Code

Sustainability and Renewable Energy

6. Promotion of Energy from Renewable Sources Regulations (S.L. 545.13)
7. Climate Action Act (Cap. 643)
8. Environment and Development Planning Act, 2010 (Cap. 504)

Regulation and Oversight

9. Electricity Networks and Services (Regulation) Act (Cap. 563)
10. Malta Resources Authority Act, 2000 (Cap. 423)
11. Regulator for Energy and Water Services Act (Cap. 545)

Strategic and Planning Frameworks

12. National Energy and Climate Plan (NECP) 2021–2030 (updated 2024)
13. Low Carbon Development Strategy (LCDS)
14. Long-Term Renovation Strategy (LTRS)
15. National Policy for the Deployment of Offshore Renewable Energy (2023)
    
     

Malta employs a range of support schemes to foster the development of electricity from renewable energy sources (RES-E). Solar photovoltaic (PV) remains the dominant and most viable RES-E technology, projected to contribute over 42% of Malta’s total renewable energy share by 2030.

As outlined in the Final Updated National Energy and Climate Plan (NECP) 2021–2030, Malta maintains a minimum target of 11% RES in the electricity sector by 2030. However, recent performance indicates more ambitious outcomes are achievable, with Malta already surpassing its overall RES target, reaching 13.4% in final energy consumption by 2022.

In addition to solar PV, the government is actively exploring offshore renewable energy options, including floating solar and wind, supported through national tenders and EU-funded innovation frameworks.

• Subsidy for PV Installations- Capital grants are available for residential and non-residential solar PV installations to help overcome cost barriers and promote self-consumption. These schemes are coordinated under national energy efficiency and RES deployment strategies.
• Feed-in Tariff (FiT) Support - PV installations with a capacity of less than 40 kWp are supported under a feed-in tariff scheme governed by S.L. 545.27, guaranteeing stable compensation for generated electricity for a period of up to 20 years.
• Tenders for Medium and Large Installations:
  • Premium Tariff Tenders (400–1,000 kWp): Competitive tenders managed by the Ministry for the Environment, Energy and Enterprise offer fixed premium tariffs over the market price for new installations within this range.
  • Tenders for Installations Exceeding 1,000 kWp: New PV and wind installations above 1 MW can participate in open tenders, provided they have not received other forms of support. These projects are evaluated based on technical merit, grid integration potential, and cost-effectiveness.
• Offshore Renewable Energy Development - A Pre-Market Consultation (PMC) for a 50 MW floating offshore PV farm was launched in 2024, representing Malta’s first major step toward meeting its target of 350–380 MW of offshore renewables by 2030. Offshore projects will be supported through specialised tenders and permitting reforms.

• Regulator for Energy and Water Services (REWS) -  Regulatory body overseeing licensing, tariffs, and market compliance.
• Ministry for the Environment, Energy and Enterprise - Responsible for tender procedures, energy strategy, and policy execution.
• Energy and Water Agency (EWA) - National authority for energy planning and EU funding coordination.

Malta’s strategy in the heating and cooling (H&C) sector remains focused on increasing the adoption of decentralised renewable technologies. While solar water heaters (SWH) remain the core technology promoted nationally, there has been a marked expansion in support schemes for energy-efficient systems, including heat pump water heaters (HPWH) and building envelope improvements.

The updated NECP confirms that the share of renewable energy in heating and cooling reached 22.06% in 2020, and is expected to rise to 25.71% by 2030. This growth will be achieved primarily through incentive schemes targeting households, improved building standards, and efforts to electrify domestic heating using renewable electricity.

There are currently no district heating or large-scale thermal networks in Malta. The emphasis is placed on individual installations and demand-side efficiency improvements in line with the Long-Term Renovation Strategy (LTRS) and Malta’s Low Carbon Development Strategy (LCDS).

• Solar Water Heaters (SWH) - A long-standing national subsidy scheme supports the installation of solar thermal systems in residential homes. This grant helps reduce upfront capital costs and encourages replacement of electric water heaters.
• Heat Pump Water Heaters (HPWH) - Introduced under the 2024 Residential Energy Efficiency Scheme, these are now also subsidised to promote energy-efficient alternatives, particularly in high-demand households.
• Building Fabric Measures -  Additional support is provided for roof insulation, double glazing, and other envelope upgrades, helping to reduce overall heating and cooling demand in existing buildings.

These support schemes are aligned with national and EU obligations under the Energy Efficiency Directive and Malta’s National Building Energy Performance Strategy.

• Regulator for Energy and Water Services (REWS) - Responsible for licensing, compliance, and regulatory oversight of heating and cooling systems.
• Energy and Water Agency (EWA) - Leads policy development, energy efficiency planning, and coordination of support schemes under national renovation and decarbonisation strategies.

Malta’s strategy to reach its 15% renewable energy in transport (RES-T) target by 2030 is built on two key pillars:

1. A mandatory biofuel substitution obligation on fuel suppliers, ensuring a consistent share of biofuels in conventional fuel blends;
2. A national-scale effort to accelerate the uptake of electric vehicles (EVs), supported by grants, tax exemptions, free public transport, and improved charging infrastructure.

As of 2022, Malta introduced free public transport for all residents with a Tallinja Card, complementing its broader goals of reducing transport emissions, promoting modal shift, and decreasing private car dependence. The updated National Energy and Climate Plan (NECP) and the Low Carbon Development Strategy (LCDS) reinforce this transition, setting a goal of 65,000 electric vehicles on the road by 2030.

• Biofuel Quota Obligation - Importers and wholesalers of fossil fuels are legally required to blend an increasing proportion of biofuels with petrol and diesel. This obligation remains the core compliance mechanism for Malta's RES-T contribution. Oversight is provided by the Regulator for Energy and Water Services (REWS).
• EV Grant Schemes (2024–2025) - The government allocated €34 million in 2025 to incentivise the adoption of new electric vehicles, including:
  • Up to €11,000 for new EVs when combined with scrappage schemes;
  • Grants for electric motorcycles, pedelecs, and vans;
  • Financial aid for scrapping old ICE vehicles and replacing them with electric alternatives.
• Tax Incentives for EVs - EVs and plug-in hybrids (with >50 km electric range) benefit from:
  • Full exemption from registration tax;
  • Five-year exemption from annual road licence fees;
  • Preferential VAT rates (where applicable).
• Residential Charging Support - Pilot schemes are currently in place to co-finance home-based and street-level EV chargers, especially in urban and apartment-based households. These pilots are part of the national charging infrastructure roadmap.
• Free Public Transport (Since Oct 2022) - Malta was among the first EU Member States to introduce nationwide free public transport for residents, promoting public transit use and reducing car dependency.
• Infrastructure & Modal Shift Initiatives - Active investments are being made in:
  • EV charging networks in urban areas;
  • Cycling infrastructure and pedestrianisation;
  • Incentives for e-mobility sharing schemes and last-mile connectivity.

• Ministry for Transport, Infrastructure and Capital Projects - Responsible for national transport policy and infrastructure planning.
• Transport Malta - Administers grant schemes, registration procedures, vehicle incentives, and mobility programmes.
• Regulator for Energy and Water Services (REWS) - Supervises compliance with the national biofuel substitution obligation.
• Enemalta plc - Manages electrical grid infrastructure and supports the integration of EV charging stations across the country.