The European Investment Bank has agreed to lend €100 million to support the construction of Malta’s second electricity interconnector with Italy, with the cable scheduled to enter service in the first quarter of 2027.
The project involves a 122 km alternating current subsea cable linking an Enemalta terminal station in Magħtab, Malta, to Terna’s substation at Contrada Cimillà in Ragusa, Sicily, according to the European Investment Bank's release issued on Thursday.
It is designed to operate at 220 kV with a transmission capacity of 225 MW.
Malta’s finance minister Clyde Caruana said the second interconnector would “reduce vulnerability to external shocks, improve supply security, and support stable energy prices for households and businesses”.
EIB vice-president Marek Mora noted electricity interconnectors were needed for a “secure, integrated and decarbonised European energy system”.
How the project will be funded
The total cost is estimated at €296.68 million, with €165.78 million coming from EU funds under the European Regional Development Fund, alongside the EIB loan and Malta’s own resources, the EIB said.
The bank said it had also provided advisory support during preparation through JASPERS, a joint initiative of the EIB and the European Commission that provides guidance on project design, procurement and implementation.
The Government of Malta will retain ownership of the assets, while Interconnect Malta — a fully government-owned company — is responsible for issuing tenders, implementing the project and operating the assets under a public service obligation.
The full interconnector capacity will be made available to Enemalta under a capacity agreement, with an annual tariff charged for its use.
