Financing Instruments

EU Funds

ESIF – European Structural and Investment Fund

The ESIF is one of the biggest financing instruments at European level, and it’s the main financing instrument for Energy Efficiency. It has 2 main components:

  1. The European Regional Development Fund (ERDF), financing projects for the development of regional growth and economy;
  2. The European Social Fund (ESF), financing projects sustaining workers and enterprises, employment, disadvantages people, etc.

For the period 2014- 2020 the ESIF has allocated:

  • € 18 billion to projects on energy efficiency,
  • € 6 billion to Renewable Energy Sources (RES), especially for buildings and district heating and cooling,
  • Ca. € 1 billion to smart distribution grids.

The fund also finances projects on sustainable energy.

For further information visit the following website.

ERDF – European Regional Development Fund

The ERDF aims to strengthen the economic and social cohesion of European Regions by correcting imbalances between them.

Thematic areas of the ERDF are:

  • Innovation and Research;
  • The digital agenda;
  • Support to SMEs;
  • Low-carbon economy.

Some ERDF resources shall be specifically addressed to low-carbon economy projects:

  • More developed region: 20%;
  • Transition region: 15%;
  • Less developed regions: 12%.

For further information visit the following website.

Other EC Funds

Horizon 2020 (H2020)

H2020 is the biggest EU Research and Innovation programme, with ca. € 80 billion for the programming period 2014-2020.

Among other topics, H2020 has a specific section for “Secure, Clean and Efficient Energy”. Objectives of this section are:

  • Reducing energy consumption and carbon footprint;
  • Low-cost, low-carbon electricity supply;
  • Alternative fuels and mobile energy sources;
  • A single, smart European electricity grid;
  • New knowledge and technologies;
  • Robust decision making and public engagement;
  • Market uptake of energy and ICT innovation.

This section is in turn divided in the following priority areas:

  • Energy efficiency;
  • Low carbon technologies;
  • Smart cities and communities.

For further information visit the following website.

ELENA Programme

This financing instrument is addressed to local and regional public authorities of other public bodies. If

co-finances projects on Energy Efficiency for up to 90% of the total eligible costs, for interventions with a budget higher than 30 million euro.

This financing instruments finances projects on:

  • Energy efficiency in buildings;
  • Installation of EE street lighting;
  • Integration of renewable energy sources in buildings;
  • Installation of sustainable district heating / cooling systems;
  • Integration of renewable energy sources in public transport;
  • Installation of smart grids;
  • Installation of ICT infrastructures for EE;
  • Inter – modular transport facilities;
  • Interventions for climate change adaptation;
  • Etc.

For further information visit the following website.

National funds

Micro Investment Scheme

Also called tax credits for micro enterprises and self – employed, it has been established with the Legal Notice 187 of 2014.

The scheme is managed by Malta Enterprise, which releases a tax credit equivalent to 45% of eligible expenditures. An additional bonus of 20% is applied to undertakings operating from Gozo.

For further information visit the following website.

Investment Aid for Energy Efficiency Projects

Malta Enterprise and the Energy and Water Agency manage together this scheme for supporting undertakings which want to carry out energy efficiency projects in their facilities.

The scheme has been launched through the Legal Notice 122 of 2018.

The investment aid is intended to facilitate investments in technological solutions that provide higher energy efficiency and directly contribute toward a reduction in the energy requirements of the beneficiaries.

For further information visit the following website.

Innovation Aid for SMEs

The scheme aims to support undertakings in carrying out innovation processes, through a tax credit addressed to recover costs related with highly qualified personnel from large enterprises and Research and Knowledge – dissemination organizations.

The scheme has been launched through the Subsidiary Legislation 463.17 – Research and Development Activity Regulation, Legal Notice no. 166 of 2017.

For further information visit the following website.

Business Enhance RD&I Grant Scheme

The scheme supports undertakings through the provision of a non – repayable grant aimed to finance research, development and innovation actions within the Smart Specialization Areas.

It is managed by the Ministry of European Affairs and Equality, Business Enhance and it is financed through ERDS and national funds.

It consists of three priority axes:

  • Investing in research, technological development and innovation;
  • Consolidating Investment within the ICT sector;
  • Enhancing Malta’s competitiveness through investment in SMEs.

For further information visit the following website.