The Luxembourg state supports the production of electricity from renewable energy sources by natural or legal persons by offering 3 types of remuneration:

• feed-in tariffs;
• market premiums;
• calls for tenders.

Who is concerned

All natural or legal persons are eligible to produce electricity from renewable energy sources and are entitled to ask for a remuneration in return.

The contracts are concluded with an electricity network manager, who is responsible for paying the remunerations.

Prerequisites

Feed-in tariffs

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 premiums

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.

Deadlines

Feed-in tariff or market premium agreements can be concluded throughout the year.

How to proceed

Feed-in tariffs

Feed-in tariffs exist for:

• wind turbines, solar energy and hydroelectric installations;
• electricity produced from biogas, gas from waste water treatment installations, solid biomass and waste wood materials.

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.

Market premiums

There are market premiums for:

• energy from wind turbines and hydroelectric installations;
• electricity produced from biogas, gas from waste water treatment installations, solid biomass and waste wood materials.

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.

Calls for tender

Calls for tender are only for photovoltaic installations with a power output of between 200 kWp and 10 MWp. In principle, calls for tender are held once a year.

At present, there is no call for tender underway.

Indicative multi-annual timetable

Timeline of previous calls for tenders

• Call for tender of 24 February 2018
• Call for tender of 11 September 2019
• Call for tender of 10 October 2020
• Call for tender of 25 September 2021
• Fourth call for tender for photovoltaic installations launched in 2021
• Fifth call for tender for photovoltaic installations

Who to contact