The Luxembourg state supports the production of electricity from renewable energy sources by natural or legal persons by offering 3 types of remuneration:
Each natural or legal person is eligible to produce electricity from renewable energy sources and is entitled to ask for a remuneration in return.
The contracts are concluded with an electricity network manager, who is responsible for paying the remunerations.
A feed-in tariff agreement has to be concluded with a network manager.
For photovoltaic energy installations with a power output between 200 and 500kW, only civil or cooperative companies are allowed to enter into such agreements.
Market premium agreements can only be entered into with a network manager if the production capacity is at least 500 kW, with the exception of energy from wind turbines, for which the power output must be equal to or higher than 3 MW or 3 production units.
Calls for tender are only for photovoltaic installations with a power output of over 200 kW and 5 MW at the most. The currently ongoing call for tender concerns a total capacity of 40 MW divided into 5 lots.
Feed-in tariff or market premium agreements can be concluded throughout the year..
Feed-in tariffs exist for:
The tariffs are guaranteed for 15 years from the date of the first feed-in of electricity into the network.
The tariffs are calculated with an annual reduction (degressive rates) depending on the date of the first feed-in of electricity into the network.
There are different categories depending on the capacity of the installation.
Feed-in tariff agreements are for installations with a production capacity of less than 500 kW, with the exception of energy from wind turbines, for which the power output must be less than 3 MW or 3 production units.
There are market premiums for:
The principle of market premiums only applies to installations with a production capacity equal to or higher than 500 kW, and to energy from wind turbines for which the power output must be equal to or higher than 3 MW or 3 production units.
The market premium requires that the electricity producer sells the electricity directly on the market via an intermediary who can be freely chosen.
In addition, the producer will receive a variable bonus paid by the network manager. The producer must contact the network manager who can provide a standard contract template concerning market premiums. The variable bonus fills the gap between the market price and the remuneration as provided for by the law.
Bonuses are guaranteed for 15 years from the date of the first feed-in of electricity into the network.
The Minister responsible for energy can initiate calls for tender in order to select the owners of new electricity production installations from solar energy in Luxembourg.
Calls for tender are published in the Official Journal of the European Union and in the following newspapers:
Tenders for the current call for tender can be submitted until 15 April 2021. The detailed conditions of the call for tender can be found in the specification document. The tender specifications can be sent by email to any person sending a request to the following email address: PV@energie.etat.lu.
The outcome of the previous call for tender can be consulted here.
The legislation on the production of electricity based on renewable energy sources has foreseen the possibility to organise competitive tenders on a European level. However, such calls for tender do not yet exist.