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Biogas in Luxembourg

General
In Luxembourg several laws are effective on the promotion of renewable energies, and a range of policy measures are in place. The independent energy agency AEL offers easy access to all measures on energy efficiency and renewable energies. The agency targets four types of consumers: private households, municipalities, commercial players and the agricultural sector.

Staring from 2008 onwards, the Règlement grand-ducal du 8 février 2008 relatif à la production d’électricité basée sur les sources d’énergie renouvelables applies.

The new Règlement Grand-Ducal of 28 April 2009 introduces a series of modifications to the financial incentivesfor energiy saving and renewables in the domestic sector. This concerns mainly an extension of the application fields, reorganisation of energy supply, simplicifation of criteria for eligibility and time windows, as well as district heating.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Luxembourg is 11% (in the year 2005 the share was 0.9%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Luxembourg
The National Renewable Energy Action Plan (NREAP) for Luxembourg was submitted in August 2010. The target according to Annex I of Directive 2009/28/EC is 11% for the year 2020 and the projected NREAP share in that year exactly matches the target, based on a contribution from flexible mechanisms.  According to the projection, the most important contribution in the year 2020 is expected from biodiesel (renewable transport) (193 ktoe, 40% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (83 ktoe, 17% of all renewable energy). The third largest contribution is from biomass (renewable electricity) (0.3 TWh or 29 ktoe, 6% of all renewable energy). Onshore wind power contributes with 0.1 GW (0.2 TWh) in the year 2020. For solar photovoltaic the 2020 contribution is projected to be 113 MW (84 GWh). For solar thermal the 2020 contribution is projected to be 8 ktoe. The two most important biofuels are projected to contribute 193 ktoe (biodiesel) and 23 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 0.2 TWh (16 ktoe) and for biogas it is expected to be 0.1 TWh (12 ktoe). The consumption of renewable heat is expected to amount to 70 ktoe for solid biomass and 13 ktoe for biogas.

Renewable heat and electricity: biogas
A biomass-based heating system in households benefits from a subsidy of 25% (wood heating) or 30% (pellet heating) up to a maximum amount of 2500 EUR per household. Micro-CHP may benefit from an investment subsidy of 25% up to maximum 3000 EUR (this is not necessarily renewables-based). For the connection to a district heating system with an input over 75% re-newable energy subsidies apply. Besides, numerous financial aids exist for energy efficiency and energy consults.

Municipalities may benefit from incentives up to 40% of the costs on energy planning or reno-vation projects. For renewable energy facilities, the support is 33% of the investment costs (so-lar thermal, biomass, seasonal heat storage). Biogas and biomass (pellets, wood) CHP installa-tions may benefit from an investment subsidy of 33%. District heating systems may receive 20 to 33% investment subsidy. In individual cases, the subsidy rates may increase additionally with 5% or 10%, up to a maximum of 50%.

For electricity from biogas installations two types of incentives exist: a base feed in tariff and an ecological premium.

The feed in tariff is split into two capacity ranges: biogas installations ranging from 1 to 500 kW receive a tariff of payment is 7.76 c€/kWh, for installations ranging from 501 kW to 10 MW the payment is determined by the following formula: (1.95 + (500/P[kW])^0.75)* 2.63 (in c€/kWh), where P is the nominal installed electrical capacity, expressed in kW. The payments defined in the are applicable for installations commissioned since January 2005.

The ecological premium applies to installations committed between January 1st 2005 and December 31st 2007 and amounts to 2.5 c/kWh for biogas installations ranging from 1 kW to 3000 kW (during a period of 10 years).

In addition, electricity from CHP is financially supported, also if generated from fossil fuels.

Future programme changes expected
No information on future policy.

Sources
Agence de l’énergie (AEL) http://www.ael.lu (sourced September 2008)

Règlement grand-ducal du 21 décembre 2007 instituant un régime d’aides pour des per-sonnes physiques en ce qui concerne la promotion de l’utilisation rationnelle de l’énergie et la mise en valeur des énergies renouvelables, http://www.ael.lu

Circulaire 2489 aux administration communales (…) concernant fonds pour la protec-tion de l’environnement, 20 April 2005, http://www.ael.lu

Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010