The European Investment Bank (EIB) is supporting Malta’s energy transition with a €100 million financing agreement for the country’s second electricity interconnector with Italy. The announcement was made by EIB Vice-President Marek Mora and Malta’s Minister for Finance Clyde Caruana, highlighting the project’s importance in strengthening energy security, improving supply stability, and enabling greater integration of renewable energy sources.
The project involves the construction of a 122-kilometre subsea alternating current electricity cable linking Malta’s Enemalta terminal station in Magħtab to Terna’s substation in Sicily. With a transmission capacity of 225 MW, the interconnector will significantly increase electricity exchange between Malta and the European grid, supporting more stable supply and facilitating renewable energy integration. The project is expected to become operational in the first quarter of 2027.
Officials emphasized that the interconnector is a key component of Malta’s long-term energy strategy and its efforts to meet EU climate and energy targets for 2030. It will enable greater electricity imports from the EU market, reduce dependency on isolated generation, and improve resilience against external energy shocks while supporting stable prices for consumers and businesses.
The total project cost is estimated at €296.68 million, with funding provided through a combination of EU support under the European Regional Development Fund, the EIB loan, and Malta’s national resources. The EIB also provided advisory support through JASPERS, helping ensure the project’s technical, financial, and regulatory readiness.
Malta’s government will retain ownership of the infrastructure through Interconnect Malta, a state-owned entity responsible for implementation and operation. Enemalta will have access to the interconnector’s full capacity under a long-term agreement, ensuring reliable integration into the national electricity system.
The EIB has a long-standing partnership with Malta, having supported projects across infrastructure, SME financing, urban regeneration, and climate action for more than four decades. This latest investment reinforces its broader role in promoting sustainable energy systems and strengthening economic resilience across the European Union.
