Overall assessment

Updated October 2023

In Subsidiary Legislation 545.35, Malta included provisions for RECs, while the provisions for CECs were introduced with Subsidiary legislation 545.34 (Electricity Regulations). Overall, all the references to an enabling framework for RECs or CECs and a support scheme that will take the specificities of RECs into account is a copy paste from the EU Directives, without any further elaboration. This means that several barriers for the development of energy communities continue to exist, such as the fact that citizens do not know what legal form they should choose in order to develop an energy community, the lack of financing or the lack of available spaces for such communities to develop their projects. The development of secondary legislation and by-laws is needed to further define what each principle means in the context of Malta and design a concrete enabling framework for them to be able to participate in the market and engage in different activities.

Detailed assessment

Assessment of obstacles and potential for development of ECs

The national legislation mentions that the Minister shall carry out an assessment of the existing barriers and potential of development of renewable energy communities, but there is no assessment yet in place.

Removal of unjustified regulatory & administrative barriers

Such barriers still exist. The Law does not specify how they will be removed. The legislation on CECs states that the Regulator shall have the duty to monitor the removal of unjustified obstacles to and restrictions on the development of consumption of self-generated electricity and CECs.

DSO duties around cooperation with ECs and facilitation of energy sharing

The national legislation specifies that the enabling framework shall ensure that the relevant distribution system operator cooperates with RECs and CECs to facilitate energy transfers within the communities. There is no elaboration of what this concretely means and how the DSO will cooperate with energy communities.

Fair, proportionate, and transparent registration & licensing procedures

The national legislation mentions that the enabling framework shall ensure that RECs and CECs are subject to fair, proportionate and transparent procedures, including registration and licensing procedures, and cost-reflective network charges, as well as relevant charges, levies and taxes, ensuring that they contribute, in an adequate, fair and balanced way, to the overall cost sharing of the system in line with a transparent cost-benefit analysis of distributed energy sources developed by the national competent authorities. There is no further elaboration of what this concretely means in the context of Malta.

Incentives connected to network tariffs based on a CBA

See above – just a copy paste from the RED II.

Non-discriminatory treatment as market participant

The national legislation states that the enabling framework shall ensure that RECs and CECs are not subject to discriminatory treatment with regard to their activities, rights and obligations as final customers, producers, suppliers, distribution system operators, or as other market participants – copy paste of EU provisions.

Accessibility to low-income & vulnerable households

Copy paste.

Tools to access finance

Copy paste.

Tools to access information

Article 21(1) of Subsidiary Legislation 545.35 highlights that the Regulator, the Building and Construction Authority, the Permanent Secretary responsible for Social Policy and, or Social Accommodation and any other relevant public authorities shall make available information on support measures falling under their respective remit to all relevant actors, such as consumers including low-income, vulnerable consumers, renewables self-consumers, renewable energy communities, builders, installers, periti, suppliers of heating, cooling and electricity equipment and systems, and suppliers of vehicles compatible with the use of renewable energy and of intelligent transport systems.

Regulatory capacity building for public authorities

Copy paste

NECP reporting on enabling frameworks

Copy paste. Member States are required via the Governance Regulation (2018/1999) to report on their enabling frameworks for RECs by 15 March 2023.

Support Scheme adapted for RECs

Article 24(7) of Subsidiary Legislation 545.35 states that without prejudice to Articles 107 and 108 TFEU, the Minister shall take into account specificities of renewable energy communities when designing support schemes in order to allow them to compete for support on an equal footing with other market participants. No such supporting measures are available yet.