S.L. 545.43 Art. 12Mainstreaming renewable energy in heating and cooling.   S.L. 545.33. S.L. 623.07.    S.L. 545.33. S.L. 623.07.

(1) In order to promote the use of renewable energy in the heating and cooling sector, the Minister shall increase the share of renewable energy in that sector by at least zero point eight (0.8)

percentage points as an annual average calculated for the period 2021 to 2025 and by at least one point one (1.1) percentage points as an annual average calculated for the period 2026 to 2030, starting from the share of renewable energy in the heating and cooling sector in 2020, expressed in terms of national share of gross final consumption of energy and calculated in accordance with the methodology established in regulation 7.

(2) Waste heat and cold may be counted towards the average annual increases referred to in sub-regulation (1) up to a limit of zero SOURCES

point four (0.4) percentage points:

Provided that in such case the average annual increase shall increase by half of the waste heat and cold percentage points counted to an upper limit of one point zero (1.0) percentage points for the period 2021 to 2025 and of one point three (1.3) percentage points for the period 2026 to 2030.

(3) The Commission shall be informed of the intention to count waste heat and cold and of the estimated amount in the integrated national energy and climate plans submitted in accordance with Articles 3 and 14 of Regulation (EU) 2018/1999.

(4) In addition to the minimum percentage points annual increases referred to in sub-regulation (1), the Minister shall endeavour to increase the share of renewable energy in the heating and cooling sector by the following indicative percentage points as follows:

(a) by an additional indicative zero point eight (0.8) percentage points for the period 2021 to 2025; and

(b) by an additional indicative zero point five (0.5) percentage points for the period 2026 to 2030:

Provided that if these indicative additional shares are achieved, the resultant share, inclusive of such additional share but excluding waste heat and cold, shall be of one point six (1.6) percentage points.

(5) Renewable electricity used for heating and cooling may be counted towards the annual average increase established in sub-regulation (1), up to a limit of zero point four (0.4) percentage points, provided that the efficiency of the heat and cold generator unit is higher than one hundred percent (100%):

Provided that in such case the average annual increase shall increase by half of that renewable electricity expressed in percentage points to an upper limit of one point zero (1.0) percentage points for the period 2021 to 2025 and of one point three (1.3) percentage points for the period 2026 to 2030.

(6) The Commission shall be informed of the intention to count renewable electricity used in heating and cooling from heat and cold generators the efficiency of which is higher than one hundred percent (100%) towards the annual increase established in sub-regulation (1) through the submission of the plans required by Regulation (EU) 2018/1999 as follows:

(a) the estimated renewable electricity capacities of heat and cold generator units the efficiency of which is higher than one hundred percent (100%) shall be included in the integrated national energy and climate plans submitted in accordance with Articles 3 and 14 of the said Regulation; and

(b) the amount of renewable electricity used in heating and cooling from heat and cold generator units the efficiency of which is higher than one hundred percent (100%) shall be included in the integrated national energy and climate progress reports submitted in accordance with Article 17 of the said Regulation.

(7) For the calculation of the share of renewable electricity used in heating and cooling for the purposes of sub-regulation (1) the average share of renewable electricity supplied in Malta in the two (2) previous years shall be used.

(8) The Minister shall carry out an assessment of the potential of energy from renewable sources and of the use of waste heat and cold in the heating and cooling sector including, where appropriate, an analysis of areas suitable for their deployment at low ecological risk, and of the potential for small-scale household projects.

(9) The assessment referred to in sub-regulation (8) shall:

(a) consider available and economically feasible technology for industrial and domestic uses in order to set out milestones and measures to increase the use of renewable energy in heating and cooling;

(b) consider, where appropriate, the use of waste heat and cold through district heating and cooling with a view to establishing a long-term national strategy to reduce greenhouse gas emissions and air pollution originating from heating and cooling;

(c) be in accordance with the energy efficiency first principle;

(d) be part of the integrated national energy and climate plans submitted in accordance with Articles 3 and 14 of Regulation (EU) 2018/1999; and

(e) accompany the comprehensive heating and cooling assessment required by regulation 21 of the Energy

Efficiency Regulations.

(10) For the purposes of sub-regulation (1), when calculating the share of renewable energy in the heating and cooling sector and its average annual increase in accordance therewith, including the SOURCES

additional indicative increase established in sub-regulation (4), the Minister:

(a) where the share of renewable energy in the heating and cooling sector is above sixty per cent (60%), may count any such share as fulfilling the average annual increase; and

(b) where the share of renewable energy in the heating and cooling sector is above fifty per cent (50%) and up to sixty per cent (60%), may count any such share as fulfilling half of the average annual increase.

(11) When deciding which measures to adopt for the purposes of deploying energy from renewable sources in the heating and cooling sector, the Minister may take into account cost-effectiveness reflecting structural barriers arising from the high share of natural gas or cooling, or from a dispersed settlement structure with low population density.

(12) Where measures would result in a lower average annual increase than that referred to in sub-regulation (1), this shall be made public through the inclusion within the integrated national energy and climate progress reports in accordance with Article 20 of Regulation

(EU) 2018/1999, and the Commission shall be provided with reasons, including of choice of measures as referred to in sub-regulation (10).

(13) The relevant authorities, within the scope of their legally established remit, shall in particular provide information to the owners or tenants of buildings and SMEs on cost-effective measures, and financial instruments, to improve the use of renewable energy in the heating and cooling systems through accessible and transparent advisory tools.

(14) On the basis of objective and non-discriminatory criteria, the Minister may establish and make public a list of measures and may designate and make public the implementing entities, which are to contribute to the average annual increase referred to in sub-regulation (1).

(15) To achieve the average annual increase referred to in sub-regulation (1), the Minister shall endeavour to implement at least two

(2) of the following measures:

(a) physical incorporation of renewable energy or waste heat and cold in the energy sources and fuels supplied for heating and cooling;

(b) the installation of highly efficient renewable heating and cooling systems in buildings, the connection of buildings to efficient district heating and cooling systems or the use of renewable energy or waste heat and cold in industrial heating and cooling processes;

(c) measures covered by tradable certificates proving compliance with the obligation stipulated in sub-regulation (1), through support to installation measures under paragraph (b), carried out by another economic operator such as an independent renewable energy technology installer or an energy service company providing renewable energy installation services;

(d) capacity building for national, regional and local authorities to map local renewable heating and cooling potential and plan, implement and advise on renewable energy projects and infrastructures;

(e) the creation of risk mitigation frameworks to reduce the cost of capital for renewable heat and cooling and waste heat and cold projects, allowing for, inter alia, the bundling of smaller projects as well as linking such projects more holistically with other energy efficiency and building renovation measures;

(f) the promotion of renewables heating and cooling purchase agreements for corporate and collective small consumers;

(g) planned replacement schemes of fossil heating sources, or of heating systems that are not compatible with renewable sources or fossil phase-out schemes with milestones;

(h) requirements at local and regional level concerning renewable heat planning, encompassing cooling;

(i) the promotion of the production of biogas and its injection into the gas grid, instead of its use for electricity production;

(j) measures promoting the integration of thermal energy storage technology in heating and cooling systems;

(k) the promotion of renewable based district heating and cooling networks, in particular by renewable energy communities, including through regulatory measures, financing arrangements and support;

(l) other policy measures, with an equivalent effect, including fiscal measures, support schemes or other financial incentives that contribute to the installation of renewable heating and cooling equipment and the development of energy SOURCES

networks supplying renewable energy for heating and cooling in buildings and industry.

(16) When adopting and implementing any of the measures described in sub-regulation (14), the Minister shall ensure their accessibility to all consumers, in particular those in low-income or vulnerable households, who would not otherwise possess sufficient up-front capital to benefit.

(17) The Minister may use the structures established under the national energy savings obligations established in regulation 8 of the

Energy Efficiency Regulations to implement and monitor the measures referred to in sub-regulation (14).

(18) Where entities are designated under sub-regulation (14), the Minister shall ensure that the contribution by those designated entities is measurable and verifiable.

(19) Where entities are designated under sub-regulation (14) they shall report annually to the Regulator on:

(a) the total amount of energy supplied for heating and cooling;

(b) the total amount of renewable energy supplied for heating and cooling;

(c) the amount of waste heat and cold supplied for heating and cooling;

(d) the share of renewable energy and waste heat and cold in the total amount of energy supplied for heating and cooling; and

(e) the type of renewable energy source.

(20) Where entities are designated under sub-regulation (14) and report to the Regulator in accordance with sub-regulation (19), the Regulator shall verify the reported contributions submitted and shall report these to the Minister in aggregated form.