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News | Sunday, 18 April 2010

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After blackout, government considers renting ‘temporary generators’


The government is actively considering the installation of temporary generators to ensure a stable energy supply for the island, following the abrupt, nationwide interruption of electricity supply on Good Friday.
This consideration comes in the wake of growing concern over the tight energy deadlines which could force Enemalta to ration electricity if the cable connecting Malta with Sicily is not completed some time between 2012 and 2015 – when the 20,000 hour limit for Marsa power station set by EU directives expires.
A spokesperson for Finance Minister Tonio Fenech confirmed that this option is being considered, in reply to questions by MaltaToday.
“Enemalta is responsible for continuity of supply, it has always considered the option of renting temporary generating facilities.”
The spokesperson added that the option “has been considered in the past and is an option commonly used by other island utilities, particularly to bridge peak demand periods.”
But although the ministry claims that Enemalta has always considered this option, it was not mentioned in Malta’s draft energy policy, nor was it contemplated in the original tender awarded to Burmeister & Wain Scandinavian Contractor (BWSC) for the extension of the Delimara Power Station.
This contrasts with a similar contract awarded to BWSC for the construction of a power station in Larnaca, Cyprus, which envisioned the provision of a temporary energy supply by the same company until the new power station was finalised.
But the minister’s spokesperson refused to provide any details when asked whether it intends to issue a public tender for the provision of these temporary generating power facilities.
According to the ministry, the renting of temporary generators “is not directly connected with the tender for the new plant, and hence it does not make commercial sense to limit the corporation’s options”.
MaltaToday is informed that following the Good Friday power cut, prominent businessmen have expressed their concern about a repeat of the nationwide blackout.
The costly renting of temporary generators could be a quick-fix solution in view of the government’s procrastination in the previous legislature to invest in the upgrading of the generation capacity, notwithstanding Enemalta’s Electricity Generation Plan for 2006 – 2015, which was endorsed by Gonzi’s first Cabinet of Ministers.
Sources close to Enemalta Corporation are seeing this temporary solution as quite complex, given the very restricted floor space in Delimara due to the fact that the new extension project is going to take up a sizeable part of the remaining land, upon which civil works have to be undertaken without further delay.
It is also doubtful whether the government can finance this extra expense, running into millions of euros, through a loan from the European Investment Bank, as it does not form part of the original scope of the awarded contract.
MaltaToday is also informed that the government is wary of revising the original tender awarded to BWSC to include the provision of temporary generators, in view of the controversy on the award of the original tender which is the subject of an investigation by the National Audit Office.

The Cyprus model
The reference to “other islands” which resorted to temporary generators in the Finance Ministry’s reply can be taken as an allusion to the use of temporary generators in Cyprus, supplied by the same company responsible for the construction of the new Delimara power station.
Similar to what happened in Malta, Danish power specialist BWSC also won the tender to install the permanent upgrade to the Cypriot power station – but with a significant difference.
The Cypriot authority planned its power requirements around the needs of these summer months and its increasing demand. In fact, as part of the contract to construct the new power station, BWSC had to ensure temporary power for the 2008’s tourist season.
BWSC turned to Energyst International to help the company meet immediate demand that summer while its massive permanent installation progressed.
In May 2008 a team of 25 engineers from Energyst’s international division worked around the clock on Cyprus to install 50MW of temporary power at the island’s Dhekelia power station near to the seaside resort of Larnaca.
Cyprus, like Malta, faces a massive annual growth in its population as over 2.5 million tourists flock to the Mediterranean island.

 


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