Renewable Energy in Malta: Laws and their Application Explained

Malta’s renewable energy legislation is largely shaped by European Union directives, adapted locally to suit the island’s unique geography and energy needs. Given Malta’s geographical limitations, the country is focusing on innovative strategies—such as offshore floating wind and solar projects—to expand its renewable energy mix and meet binding national and EU climate targets.

The transition to renewables is guided by national laws such as the Regulator for Energy and Water Services Act (Cap. 545), Environment Protection Act (Cap. 549), Climate Action Act (Cap. 643) and the Development Planning Act (Cap. 552), alongside a range of subsidiary regulations that promote cleaner sources of power.

Key regulations include:

• Promotion of Energy from Renewable Sources (Amendment) Regulations (SL 545.11), which set out targets and support mechanisms for green energy.
• Electricity Regulations (SL 545.34), transposes Directive (EU) 2019/944 and defines renewable energy sources, outlines licensing procedures, grid connection, exemptions for small-scale generation, and obligations for energy producers.
• Energy Efficiency Regulations (SL 545.33), promotes efficient energy use across sectors and support national and EU decarbonisation targets.
• Incentive schemes offered through Malta Enterprise and the Regulator for Energy and Water Services (REWS), which aim to encourage investment and adoption.

These legal instruments support Malta’s obligations under the EU Green Deal and the National Energy and Climate Plan, setting ambitious but achievable goals for the years ahead.

In response to space constraints, Malta is shifting its focus toward offshore renewable energy technologies, particularly floating wind farms and floating solar platforms. These solutions offer scalable capacity without occupying valuable land, and are well-suited to Malta’s marine geography.

In 2024, the government published a Pre-Qualification Questionnaire inviting proposals for a 280–320 megawatt floating offshore wind project within Malta’s planned Exclusive Economic Zone (EEZ). Simultaneously, market consultations were launched to assess the feasibility of nearshore and offshore floating solar farms, with the aim of attracting private-sector innovation and investment.

To support the integration of offshore renewables and ensure energy system resilience, Malta is also pursuing several major infrastructure projects:

• Battery Energy Storage Systems (BESS): Tenders for two large-scale BESS units were issued by Interconnect Malta, intended to stabilise the grid and manage intermittent energy supply.
• Second Electricity Interconnector: A planned new connection between Malta and Italy is expected to improve import flexibility, system reliability, and integration with the EU energy market.
• Hydrogen-Ready Gas Pipeline: A proposed pipeline between Malta and Sicily is designed to transport natural gas in the short term and accommodate green hydrogen in the future. This aligns with EU goals on hydrogen corridors and decarbonisation infrastructure.

Malta offers a range of structured support mechanisms to promote the development and adoption of renewable energy. These include:

• Feed-in Tariffs (FiTs): Offered for solar PV systems up to 40kW, these tariffs are regulated by Subsidiary Legislation 545.27, providing a guaranteed payment for electricity exported to the grid.
  
• Competitive Bidding Schemes: Larger projects exceeding 40kW or 1MW may qualify for financial support through tenders governed by SL 545.39, which often result in Contracts for Difference (CfDs).
  
• Grants for PV and Storage: These are administered by the Regulator for Energy and Water Services (REWS) and co-financed by EU funds. They typically cover part of the capital cost of solar panels, inverters, and battery systems.
• Green Bond Financing: Through the Malta Stock Exchange Green Market, qualifying renewable energy and sustainable infrastructure projects may raise capital via green bonds, provided they meet recognised environmental criteria.

These schemes reduce the financial burden on both individuals and businesses and are a central part of Malta’s strategy to encourage widespread renewable energy investment.

Several public bodies in Malta play distinct and coordinated roles in regulating and supporting renewable energy projects:

• REWS (Regulator for Energy and Water Services):
  Established under the Regulator for Energy and Water Services Act (Cap. 545), REWS is responsible for energy licensing, enforcement, tariff setting, and managing support schemes such as FiTs and competitive tenders.
  
  
• Planning Authority (PA):
  Created under the Development Planning Act (Cap. 552), PA oversees development permits, zoning control, and land use planning—including permits for renewable installations.
  
  
• Environment and Resources Authority (ERA):
  Operating under the Environment Protection Act (Cap. 549), ERA manages Environmental Impact Assessments (EIAs) and ensures compliance with national environmental standards.
  
  
• Climate Action Authority:
  Set up under the Climate Action Act (Cap. 643), this authority oversees the country’s climate policy and GHG inventory obligations under EU Regulation 2021/1119 and the UNFCCC.
  ‍
• Interconnect Malta:
  A state-owned infrastructure body tasked with the development of grid-scale renewable energy systems, offshore projects, electricity interconnection, and energy storage.

Businesses and households in Malta primarily adopt renewable energy through rooftop solar PV systems, supported by FiT schemes and installation grants. These solutions are scalable, cost-effective, and widely adopted in the residential and commercial sectors.

For medium to large-scale projects, a more comprehensive regulatory path is required.
The process includes: 

• An authorisation from REWS, unless exempted under SL 545.34
  
• A development permit under Cap. 552, issued by the Planning Authority
• Environmental screening or an EIA by ERA, under SL 549.46
• A grid connection agreement with Enemalta or Interconnect Malta
• Optional entry into competitive bidding rounds, under SL 545.39

Smaller systems (≤16A per phase) designed solely for self-consumption are exempt from full licensing but must be notified to REWS.

Over the past 12 months, Malta has advanced several key initiatives in support of its renewable energy and decarbonisation goals, in line with its obligations under the Climate Action Act (Cap. 643) and Malta’s updated National Energy and Climate Plan (NECP).

The government has expanded its financial incentives for rooftop solar PV installations, targeting both residential and commercial sectors. These schemes—partially funded through the EU Recovery and Resilience Facility (RRF)—have contributed to an estimated 15–20% increase in installed solar PV capacity since 2023. These installations continue to benefit from feed-in tariffs under SL 545.27 and other grant mechanisms administered by the Regulator for Energy and Water Services (REWS).

Malta has also taken important steps to explore offshore renewable energy potential. While no offshore wind projects have yet been commissioned, consultations and preparatory tenders have generated interest from international stakeholders. This exploration aligns with Malta’s strategy to overcome land-use limitations and diversify its renewable energy mix.

On a regional level, Malta has strengthened international cooperation through the signing of Memoranda of Understanding (MoUs) with Egypt and Libya. These agreements focus on:

• Joint exploration of renewable energy technologies;
• Research and innovation;
• Energy efficiency initiatives;
• The development of virtual energy corridors and indirect grid interconnections.

Discussions are also ongoing with Tunisia, where Malta expects to formalise a new energy partnership, reinforcing its regional energy diplomacy.

As Malta positions itself as a Mediterranean leader in offshore renewables and sustainable energy investment, the legal complexity of navigating project authorisation, infrastructure contracts, permitting, and compliance is growing. This is where tailored legal expertise becomes essential.

At Chetcuti Cauchi Advocates, our Property and Energy Law Team provides comprehensive legal services for:

• Investors exploring land or marine-based renewable projects
• Developers requiring permitting and planning approvals
• Private clients installing residential or commercial PV systems
• Operators participating in government tenders or green bond programmes
• Cross-border partnerships involving interconnectors or hydrogen infrastructure

Our services include legal structuring, regulatory advice, due diligence, licensing under SL 545.34, representation before REWS, PA, and ERA, as well as assistance with environmental obligations, subsidy eligibility, and grid contracts.

With deep knowledge of Malta’s legislative instruments—including the Climate Action Act, the Electricity Regulations, and relevant development laws—we support our clients in aligning their projects with both national and EU energy policy.

Whether you're launching a utility-scale wind farm, retrofitting a building with solar capacity, or investing in Malta’s growing offshore sector, Chetcuti Cauchi Advocates offers the legal foundation to make your project viable, compliant, and future-proof.

Our multi-disciplinary expertise ensures that your clean energy investment is guided by law, powered by insight, and aligned with Malta’s strategic energy transition. Let us help you unlock the full potential of renewable energy in Malta.