-- The European Investment Bank has agreed to provide 100 million euros ($117 million) in financing for Malta's second electricity interconnector with Italy, a project aimed at strengthening the island nation's energy security and accelerating its shift toward renewable power, EIB said in a statement on Thursday.
The new subsea cable, known as IC2, will run 122 kilometers between Malta and Sicily, linking the Enemalta terminal station in Maghtab with Terna's substation in Ragusa. Designed as an alternating current connection operating at 220 kilovolts and 50 hertz, the interconnector will have a transmission capacity of 225 megawatts.
Officials said the project will significantly expand electricity interconnection capacity between Malta and Italy, enabling greater access to the European power market, improving grid stability, and supporting the integration of renewable energy sources.
The interconnector is scheduled to begin operations in the first quarter of 2027 and is a central component of Malta's energy strategy, particularly its efforts to meet the European Union's 2030 climate and energy targets.
Total project costs are estimated at 296.68 million euros. Funding includes 165.78 million euros from the European Regional Development Fund, alongside the EIB loan and contributions from the Maltese government.
The project also received advisory support from JASPERS, a joint initiative of the EIB and the European Commission, which assisted with project preparation, design, and compliance with EU requirements.
Ownership of the infrastructure will remain with the Maltese government. Interconnect Malta, a state-owned company, will oversee the procurement, construction, and operation of the interconnector. Its full capacity will be made available to Enemalta, Malta's electricity distribution operator, under a capacity agreement with an annual usage tariff.