ROME (ITALPRESS) – The European Investment Bank (EIB) is supporting Malta’s energy transition by strengthening the island’s electricity infrastructure, enhancing security of supply, and facilitating the integration of renewable energy sources.
In this context, EIB Vice-President Marek Mora and Malta’s Minister for Finance, Clyde Caruana, today announced the signing of a €100 million financing agreement to support the construction of a second electricity interconnector between Malta and Italy (IC2).
The project involves the construction of a 122-kilometre submarine electricity transmission line, with a rated voltage of 220 kV in alternating current, a frequency of 50 Hz, and a transmission capacity of 225 MW. The cable will connect Enemalta’s terminal station in Magħtab, Malta, with the Italian Terna substation located in Contrada Cimillà, Ragusa.
The project has also benefited from technical advisory support provided by the EIB during its preparation phase, including the assessment of its financial and economic sustainability. This support contributed to ensuring the project’s maturity, eligibility for financing, and compliance with relevant European Union requirements.
Malta’s Minister for Finance, Clyde Caruana, commented: “The second interconnector represents a significant investment for Malta’s long-term economic stability. By strengthening our energy infrastructure, we reduce vulnerability to external shocks, improve security of supply, and support more stable energy prices for households and businesses.”
The interconnector, expected to become operational in the first quarter of 2027, will increase electricity interconnection capacity between Malta and Italy, enabling the import of electricity from the EU market. It will also enhance supply security and grid stability, helping to meet rising demand and support the integration of renewable energy, in line with the country’s decarbonisation objectives.
EIB Vice-President Marek Mora added: “Electricity interconnectors are essential for a secure, integrated, and decarbonised European energy system. By supporting Malta’s second interconnector with Italy, the EIB strengthens energy security, facilitates cross-border electricity trade, and promotes the integration of renewable energy sources, while ensuring that growing demand can be met reliably and sustainably. The project reflects the EIB’s key role in supporting strategic energy infrastructure across Europe.”
The total cost of the project, estimated at €296.68 million, will be financed by the European Union through the European Regional Development Fund with €165.78 million, with the remaining amount covered by the EIB loan and Malta’s national resources.
The EU bank is also providing advisory services through JASPERS, a joint initiative between the EIB and the European Commission, offering assistance in project design, procurement, and implementation to ensure technical robustness and smooth delivery of this strategic infrastructure.
The Government of Malta will retain ownership of the project. Interconnect Malta, a fully state-owned company, is responsible for procurement, implementation, and operation of the interconnector under a public service obligation. The full capacity of the interconnector will be made available to Enemalta, Malta’s electricity distribution system operator, under a capacity agreement that includes an annual usage fee.
– photo IPA Agency –
(ITALPRESS).
