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Despite a wide variety of support measures for RES and a stable investment climate, Luxembourg has not made significant progress towards its targets in recent years. In some cases, this has been caused by limitations on eligibility and budget. While the electricity production from small-scale hydropower has stabilised in recent years, the contribution from onshore wind, PV and biogas has started to increase.


The 1993 Framework Law (amended in 2005) determines the fundamentals of Luxembourgian RES-E policy:

  • Preferential tariffs are given to the different types of RES-E for fi xed periods of 10 or 20 years. The feed-in system might be subject to change, due to further liberalisation of the sector.
  • Subsidies are available to private companies that invest in RES-E technologies, including solar, wind, biomass and geothermal technologies.

Table I.16: Key Support Schemes in Luxemborg

Technology Tariff duration 2001 to September 2005 From October 2005
 fixed Capacity Tariff Capacity Tariff

years fixed

Wind 10 Up to 3000 kW 25 <501 kW 77.6
Biomass <501 kW 102.6
(77.6 + 25 for biomass)

Biogas (including landfill and sewage)
Wind 10 x x 500 kW to 10.001 kW  max 77.6
Lower for higher capacities

Hydro 500 kW to 10.001 kW max 102.6
Lower for higher capacities
Biogas (including landfill and sewage)
PV – municipalities 20 Up to 50 kW 250 No capacity restriction 280


PV – non-municipalities 450-550


The RES-E target to be achieved in 2010, as set by the EU Directive, is 5.7 per cent of gross electricity consumption. A slight increase in Luxembourg’s RES-E share can be noted. In 2004, the RES-E share amounted to 2.8 per cent of gross electricity consumption, compared to 2.1 per cent in 1997.


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