While Europe pivots from renewables, Malta charges forward

By Dr Ovidiu Tierean
Senior Advisor, PKF MALta

More European countries are reconsidering their stance on nuclear power, in an attempt to increase their energy independence and find a balance in the green transition. In recent weeks, Denmark announced that it would review its 40-year ban on nuclear power, Spain has shown itself open to reviewing the closure of its plants, and Germany has withdrawn its opposition to the use of atomic energy.

This revival of interest in nuclear power is fuelled, at least in part, by the hidden costs associated with solar and wind power, especially those related to balancing and transporting electricity. Solar and wind power don't produce electricity at a constant rate; thus their output fluctuates unpredictably. Balancing requires backup power sources, grid management tools, and storage systems, that do not come cheap. Transport costs are also high as the best locations for solar and wind, especially offshore, are often far from population centres where the power is needed. Even though some of these hight voltage lines exist, they need upgrading to handle fluctuating power flows, which were not part of its original design.

While renewable energies are still considered the cheapest and fastest solutions for the green transition, more and more governments are considering whether new nuclear technologies, such as small modular reactors (SMRs), could complement this system. An SMR typically produces up to 300 MW of electricity vs. 1,000+ MW for traditional reactors and can be deployed individually or in clusters to meet varying power needs. They may be built in factories as standardized units and then transported to the site. This reduces construction time and cost compared to conventional, custom-built nuclear plants.

New nuclear technologies under review

“Solar and wind power remain priorities for the green transition, but we need to see if new nuclear technologies can play a complementary role,” said Danish Energy Minister Lars

Aagaard. Denmark, which banned nuclear power in 1985, has no plans to build conventional nuclear power plants, but will seriously consider advanced nuclear options.

In Spain, the Minister for the Ecological Transition, Sara Aagesen, said that while the plan remains to close nuclear power plants by 2035, an extension of their operating life is not ruled out. The discussions come in the context of a major power outage that recently crippled Spain, Portugal, and southern France. Experts have questioned the reliability of the electricity grid, which relies heavily on solar and wind power, although Spanish authorities deny that renewables were the cause.

Radical change of position in Germany

Germany, which closed its last three nuclear reactors in 2023, has radically changed its position. The new government led by Chancellor Friedrich Merz has abandoned its historical opposition to nuclear energy, especially in the context of French pressure to include this source in EU legislation as comparable to renewable energies.

Although nuclear energy has a low carbon content and is seen by some as a solution to reduce emissions and dependence on fossil fuels, environmental organizations warn that it is an expensive and risky technology that distracts attention from cheaper and cleaner solutions.

Nuclear energy remains one of the most controversial sources of electricity in Europe. Rising costs of all new nuclear projects contrast the drastic fall in prices for new wind and solar installations.

Meanwhile, data shows that in the first half of last year, wind and solar power accounted for 30% of the EU’s electricity production, overtaking fossil fuels for the first time. At the same time, nuclear power production in the EU increased by 3.1%.

Despite the renewed interest, experts warn that new nuclear power plants will remain difficult to finance and will not bring real benefits until decades at the earliest. In this context, competition between nuclear and renewables supporters risks further favouring the use of natural gas.

Malta’s stance on energy security

While much of Europe reconsiders its nuclear stance, Malta is betting on renewables, particularly with its ambitious plans for offshore wind energy. Earlier this year, the Maltese government announced a tender for offshore wind development in Malta’s exclusive economic zone, marking what could be an important shift in the country’s energy strategy.

This move follows years of limited progress in renewable generation. As of 2023, Malta generated just around 12% of its electricity from renewables, heavily reliant on solar photovoltaics due to the country’s high solar exposure. However, with limited land area and a very dense urban footprint, Malta faces constraints in expanding land-based renewable projects.

Currently, Malta imports much of its electricity via the interconnector with Sicily and relies on imported liquified natural gas. Offshore wind would diversify Malta’s energy mix and enhance energy security, especially amid geopolitical uncertainties. The Mediterranean Sea around Malta offers moderate but stable wind conditions, which may support high-capacity factors with the right turbine technology in the selected site in

Hurd’s Bank. Besides, The European Union is encouraging member states to tap into marine renewables. Malta stands to benefit from EU technical support and funding mechanisms, reducing financial exposure on such a capital-intensive project.

There are some challenges of this approach though. The electric grid is not currently designed to absorb large-scale variable renewable input from offshore sources. Significant grid upgrades and energy storage solutions shall be needed to avoid black-outs and ensure stability. As mentioned above, offshore wind farms are capital-intensive, involving costly marine engineering, undersea cables, and grid integration. For a small economy like Malta’s, this raises concerns over cost-effectiveness and financing.

I guess there’s trade-off between energy security – our own expensive offshore project – and costs – importing and producing electricity, depending on our Italian and Azeri partners. Unlike larger EU nations now weighing a nuclear comeback, Malta lacks the grid scale, demand size, and financial margin to consider nuclear power, even small modular. This makes offshore wind one of the few viable pathways for major decarbonization, albeit one that comes with significant logistical hurdles.

As nuclear energy makes a controversial comeback in parts of Europe, Malta is betting on offshore wind to drive its energy transition. Success will depend on careful planning and long-term investment. The rewards will include greater energy independence, economic resilience, and climate leadership in Southern Europe.