EIB Supports Malta’s Second Electricity Interconnector to Strengthen Energy Security and Enable Renewable Integration

EIB Supports Malta’s Second Electricity Interconnector to Strengthen Energy Security and Enable Renewable Integration

(IN BRIEF) The European Investment Bank has committed €100 million to support Malta’s second electricity interconnector with Italy, a major subsea infrastructure project designed to enhance energy security, increase grid stability, and enable greater integration of renewable energy sources. The 122-kilometre cable will connect Malta to Sicily, significantly boosting interconnection capacity and allowing improved access to the European electricity market. Scheduled for operation in early 2027, the project is a central component of Malta’s energy strategy and its efforts to meet EU climate targets. With a total cost of nearly €297 million, the project is co-financed by EU funds, national resources, and EIB support, and has also benefited from advisory input to ensure robust implementation. Beyond strengthening energy supply resilience and reducing reliance on external shocks, the interconnector will help stabilize energy prices, support growing demand, and contribute to the country’s long-term decarbonisation goals. The initiative highlights the strategic importance of cross-border energy infrastructure in building a more integrated and sustainable European energy system while reinforcing Malta’s economic and environmental resilience.

(PRESS RELEASE) LUXEMBOURG, 23-Apr-2026 — /EuropaWire/ — The European Investment Bank has signed a €100 million financing agreement with the Government of Malta to support the development of the country’s second electricity interconnector with Italy, a major infrastructure project aimed at strengthening energy security and accelerating the integration of renewable energy. The agreement was announced by EIB Vice-President Marek Mora and Malta’s Minister for Finance Clyde Caruana.

The project involves the construction of a 122-kilometre subsea alternating current cable with a transmission capacity of 225 MW, operating at 220 kV and 50 Hz. The interconnector will link Malta’s Enemalta terminal station in Magħtab with Terna’s substation in Ragusa, Sicily, significantly increasing the electricity interconnection capacity between Malta and the European grid. This enhanced connectivity will enable greater electricity imports, improve grid stability, and support the integration of renewable energy sources into Malta’s energy system.

Scheduled to become operational in the first quarter of 2027, the interconnector is a cornerstone of Malta’s long-term energy strategy and its efforts to meet the European Union’s 2030 climate and energy targets. By strengthening cross-border energy exchange, the project is expected to reduce the island’s vulnerability to supply disruptions, support rising electricity demand, and contribute to more stable energy pricing for households and businesses.

Clyde Caruana emphasized the project’s importance for Malta’s economic resilience, highlighting its role in reinforcing infrastructure, improving supply security, and mitigating exposure to external energy shocks. Marek Mora underlined the strategic value of electricity interconnectors in building a more integrated and decarbonized European energy system, noting that the investment supports both sustainability goals and reliable energy access.

The total cost of the project is estimated at €296.68 million, with €165.78 million provided through the European Regional Development Fund, complemented by the EIB loan and national funding from the Maltese government. The initiative has also benefited from advisory support under the JASPERS programme, a joint effort between the EIB and the European Commission, which contributed to project preparation, design, and implementation planning.

Ownership of the infrastructure will remain with the Maltese government, while Interconnect Malta, a fully state-owned entity, will oversee procurement, construction, and operation. The interconnector’s capacity will be allocated to Enemalta, Malta’s electricity distribution operator, under a structured agreement.

The EIB’s involvement in Malta reflects a long-standing partnership, with financing in the country exceeding €1 billion across sectors such as infrastructure, climate action, and economic development. The new interconnector project reinforces this commitment, supporting sustainable investment and strengthening Malta’s position within Europe’s evolving energy landscape.

The EIB in Malta

The European Investment Bank (EIB) has been supporting the Maltese economy since before the country’s accession to the European Union, with its first project signed in 1979 to help expand the commercial port of Valletta Grand Harbour. Since then, the EIB Group’s financing in Malta has exceeded €1 billion, aiding vital sectors such as SME access to finance, urban regeneration, climate action, and telecommunications. The EIB has also supported landmark infrastructure projects that have transformed the heart of Valletta, including the Parliament building and the open-air theatre at the City Gate. As the EU’s long-term lending institution, the EIB remains committed to promoting sustainable investment and fostering economic resilience in Malta and across Europe.

Background information   

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

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SOURCE: European Investment Bank