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Photovoltaic energy 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 Electricity: photovoltaic energy (PV)
At the time of writing this overview, PV systems in Luxemburg benefit from both investment subsidies as from feed-in tariffs. Regulations differ between private persons, companies and municipalities.

Until 2004, PV system owners were offered a 50% capital investment subsidy and an almost 60 EUROcents feed-in tariff. These conditions had led Luxembourg to be the number one country in the world in terms of per-capita installed module power. The “Règlement Grand Ducal” from September 2005 restored incentives (which were stopped December 31st 2004) for PV in Luxembourg. It reintroduced feed-in tariffs as well as a limited grant system for newly installed systems.

Feed-in tariff for systems commissioned between 2005 and 2007, amounted to: 0.56 €/kWh for households (up to30kWp) and 0.28 €/kWh for municipalities. Domestic installations up to 30 kWp, commissioned in the year 2008, received  0.42 €/kWh, systems up to 1 MWp received 37 €/kWh. For 2009 and all years after, the feed-in tariff will be reduced at 3% annually (Decree of 8 February 2008).

The Decree of 21 December 2007 provides to private persons an investment supsidy of 30% of the effective costs up to a maximum of 1650 euro per kWp. This can be for roof-mounted or integrating solar PV systems. Maximum capacity of the system is 30 kWp.

Companies also benefit from investment and feed-in regulations. In municipalities, PV systems may benefit from a subsidy of 15% of the investment cost (up to EUR 900 per kWp). The law of 2 February 2004 grants PV installations (and other renewable technologies) a subsidy of 40% of the eligible investment costs.

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, which defines the feed-in tariff for solar PV as follows:

For power ranges up to 30 kWp: 420 * (1-(year of first power production - 2008)) * (3/100) in [EUR/MWh].
For power ranges between 30 kWp and 1 MWp: 370 * (1-(year of first power production - 2008)) * (3/100) in [EUR/MWh].

This results in an annually decreasing feed-in tariff:

For 2008: 420,00 EUR/MWh for installations up to 30 kWp and 370,00 for power ranges between 30 kWp and 1 MWp.
For 2009: 407,40 EUR/MWh for installations up to 30 kWp and 358,90 for power ranges between 30 kWp and 1 MWp.
For 2010: 394,80 EUR/MWh for installations up to 30 kWp and 347,80 for power ranges between 30 kWp and 1 MWp.
For 2011: 382,20 EUR/MWh for installations up to 30 kWp and 336,70 for power ranges between 30 kWp and 1 MWp.

The tariff is available for 15 years.

Future programme changes expected
No information on future policy.

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

Das Internetportal zur Sonnenenergie in Luxembourg, Förderung, www.solarinfo.lu (sourced February 2009)

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

Loi du 22 février 2004 instaurant un régime d’aide à la production d’énergie de sources renouvelables (Loi du 22.2.2004),  Agence de l’énergie (AEL),  http://www.ael.lu/cms/upload/downloads/home/dienstleistungen/unternehmen/Loi040222-ECO.pdf (sourced February 2009)

Règlement grand-ducal du 21 décembre 2007 instituant un régime d’aides pour des personnes physiques en ce qui concerne la promotion de l’utilisation, rationnelle de l’énergie et la mise en valeur des énergies renouvelables, Agence de l’énergie (AEL),  http://www.ael.lu/cms/upload/downloads/home/aktuelles/080116/RGD071221.pdf (sourced February 2009)

Règlement grand-ducal du 8 février 2008 relatif à la production d’électricité basée sur les sources d’énergie renouvelables, http://www.myenergy.lu/files/RGD080208.pdf (sourced January 2010)

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.myenergy.lu/files/RGD 2009 04 20 régime d'aides.pdf

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: March 2011



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