Interactive EurObserv’ER Database - Country policy schemes

Wind power 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.

In April 2011 the National Reform Programme Luxembourg 2020 was adopted. This programme, as required by the EU, develops a strategy for 2020 based on five targets. The plan itself does not present new policy measures to reach the EU targets on renewable, CO₂ abatement and energy efficiency. Instead, the new measures will be detailed in a CO₂ reduction plan that is expected by the end of 2011.

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. The plan states that it will not meet its 11% renewable energy target by 2020 and is looking into setting up joint projects with other EU member states to make up a forecast 2.1% shortfall. 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 is assumed to contribute with 0.1 GW (0.2 TWh) in the year 2020. Meanwhile 2% of the country’s energy will be provided by German offshore wind farms in the North Sea. 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: wind power
By the end of 2010, the installed wind capacity in Luxembourg was 42 MW. For wind power 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: wind power ranging from 1 kW 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 wind power installations ranging from 1 kW to 5000 kW.

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, which defines the feed-in tariff for wind power as follows: 82,70 * (1-(year of first power production - 2008)) * (0,25/100) in [EUR/MWh]. This results in an annually decreasing feed-in tariff:

For 2008: 82,70 EUR/MWh
For 2009: 82,49 EUR/MWh
For 2010: 82,29 EUR/MWh
For 2011: 82,08 EUR/MWh

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 (accessed January 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, http://www.ael.lu

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

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

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

The Wind Power Net: http://www.thewindpower.net/country_en_47_luxembourg.php (accessed January 2012)

Windfair Net: http://www.windfair.net/press/7950.html (accessed January 2012)

Climate Policy Tracker: http://www.climatepolicytracker.eu/sites/all/files/Luxembourg2011.pdf (accessed January 2012)

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)

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Last update: January 2012

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