Interactive EurObserv’ER Database - Country policy schemes

Solid biomass 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.

Starting 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 five-year plan Règlement Grand-Ducal etc. of 20 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. The corresponding investment must be done between 1^st January 2008 and 31^st December 2012. The amount of financial assistance is specified in the ‘Loi du 18 février 2010 relative à un régime d'aides à la protection de I'environnement et à Putilisation rationnelle des ressourcesnaturelles’ (Act/Directive of February 18, 2010).

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. Based on 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-fuelled 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: solid biomass
A biomass-based heating system in households benefits from an investment subsidy of 30% up to a maximum amount of EUR 4,0000 per household or the equivalent for multifamily houses up to a total amount of EUR 20,000. This subsidy scheme is based on 'Règlement grand-ducal du 20 avril 2009 instituant un régime d’aides pour la promotion de l’utilisation rationnelle de l’énergie et la mise en valeur des énergies renouvelables' (Act/Dirctive of April 28, 2009).

An energy centre for electricity and heat generation using biomass is supported with a financial assistance of 33% of the investment costs.

For electricity from biomass installations two types of incentives exist. For plants with an electric capacity of ≤ 1 MW, the feed-in tariff is based on the following formula:
130 x (1-(n-2008) x 0.25/100) €/MWh, with n the year of the first electricity feed-in. For plants with an electric capacity between 1 and 5 MW the following formula applies:
110 x (1-(n-2008) x 0.25/100) €/MWh. The measure as last updated in 2008 through the ‘Règlement grand- ducal du 8 février 2008 relatif à la production d'electricité basée sur les sources d'energie renouvelables’.

Future programme changes expected
No information on future policy.

Sources
Agence de l’énergie (AEL), http://www.ael.lu (accessed 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

Règlement grand-ducal du 20 avril 2009 instituant un régime d’aides pour la promotion de l’utilisation rationnelle de l’énergie et la mise en valeur des énergies renouvelables,
http://www.legilux.public.lu/leg/a/archives/2009/0083/a083.pdf (accessed October 2011).

Règlement grand- ducal du 8 février 2008 relatif à la production d'electricité basée sur les sources d'energie renouvelables, http://www.myenergy.lu/files/RGD080208.pdf (accessed October 2011).

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

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

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 (accessed 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 (accessed December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: November 2011

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