Second Malta-Sicily interconnector ‘progressing at fast pace’ 

Malta’s second electricity interconnector has formally moved into full-scale execution, following the signing of the last remaining Engineering, Procurement and Construction (EPC) contract required for the project.

Interconnect Malta Ltd (ICM) confirmed that the latest tender – for the supply and installation of a 132kV variable shunt reactor at the Magħtab Terminal Station – has been awarded to PowerFix JV. This completes the suite of EPC agreements for IC2, marking the end of the design, permitting and procurement stage and the transition into physical implementation.

The works covered under this final contract include the manufacture and installation of the shunt reactor and associated civil works, with activity on site expected to begin in the first weeks of 2026. The Magħtab Terminal Station is the point where IC2 will connect into Malta’s grid.

Energy Minister Miriam Dalli described IC2 as “a central component of Malta’s long-term energy strategy”, noting that the additional transmission capacity to the European network will strengthen grid resilience, improve security of supply, and enable greater integration of renewable energy sources as Malta progresses towards decarbonisation.

The project consists of a ~122km, 225MW HVAC submarine cable operating at 245kV, positioned in parallel to the first Malta–Sicily interconnector commissioned in 2015. Once completed, the new cable will double Malta’s electrical connectivity to the European grid.

IC2 carries a total investment value of approximately €300 million, with €165 million in ERDF funds allocated under the 2021–2027 programme. It has been designated an “Operation of Strategic Importance” due to its role in supporting energy transition and grid modernisation.

Major milestones completed in 2025

ICM reported significant progress throughout the year, including:

• Regulatory approvals in Italy: Both Sicily’s Regione Siciliana and Italy’s Environment Ministry granted the necessary permits for works in Ragusa.
• Contract signing for subsea cable manufacturing and installation: Finalised in April, with production beginning by August at specialised facilities in Norway and the United States.
• Detailed seabed mapping and marine surveys: Completed along the planned cable corridor in September.
• On-the-ground works in Ragusa: 6km of trenches excavated and 4km of cable laid along the 21km land route; civil works for a 220kV shunt reactor foundation have also reached a new stage.
• Works in Malta: Trenching has started at Magħtab ahead of upcoming 220kV cable laying.
• Manufacturing of key components: Production of the subsea and land cables continues, while manufacturing of two 220kV shunt reactors and a 220kV/132kV autotransformer will commence in the coming months.

The coming phase will involve coordinated on-site activity at Magħtab as contractors prepare for cable laying from the terminal station to the shoreline. Marine operations and further land-based works will continue in parallel.

ICM stated that all works are being carried out in full compliance with environmental requirements. The project has undergone climate-proofing assessments and has received all Environmental Impact Assessment and planning approvals.

Engineer Joseph Vassallo, ICM’s Divisional Manager, emphasised that IC2 now enters a “delicate execution phase,” describing the signing of the final EPC contract as both a technical milestone and a clear signal of progress towards a more resilient and sustainable energy system for Malta.

According to the cost-benefit analysis referenced in the project documentation, IC2 is expected to reduce 13.5 million tonnes of CO₂ emissions over its lifetime, largely by enabling increased deployment and better management of intermittent renewable energy sources such as offshore wind and solar. The infrastructure upgrade is also aimed at bolstering security of supply as electricity demand continues to rise.