Production of electricity from renewable energy sources

Last update

Summary:

You can produce electricity from renewable energy sources and request payment under certain conditions

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 operator, who is responsible for paying the remunerations.

Prerequisites

Feed-in tariffs

A feed-in tariff agreement has to be concluded with a network operator.

For photovoltaic installations with a power output between 200 and 400 kW, only civil or cooperative companies (coopératives ou sociétés civiles) are allowed to enter into such agreements.

Market premiums

Contracts in the form of market premiums can only be signed with a network operator if the power plant has an output of at least 400 kW.

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 wastewater 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 tariffs apply to installations with a capacity of less than 400 kW.

Market premiums

There are market premiums for:

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

The market premium principle applies only to power plants with a rated output of 400 kW or more.

The market premium requires that the electricity producer sells the electricity directly on the market via an intermediary who can be freely chosen. The intermediary must be an active electricity provider in Luxembourg.

In addition to this income, the producer will receive a variable bonus paid by the network operator. The producer must contact the network operator who can provide a standard contract template concerning market premiums. The variable bonus fills the gap between the market price (calculated on the basis of a monthly value) and the remuneration as provided for by the law.

The market premium is guaranteed for at least 15 years from the date on which electricity is first fed into the grid.

Calls for tenders

Calls for tenders are only for photovoltaic installations with a power output that can range from 30 kWp to 10 MWp (depending on the type of installation and call for tenders).

There are currently no calls for tenders in progress.

In principle, calls for tenders are organised once a year, in accordance with the following indicative multi-annual timetable

Indicative multi-annual timetable

Without prejudice to any other specific calls for tenders that may be issued, the Ministry of the Economy hereby publishes an indicative multi-annual timetable for future calls for tenders relating to investment aid and operating aid:

Volumes per tender period
Tender period Investment aid:
expected volumes		   Operating aid:
volumes to be tendered		 Total volume required
2026       min. 70MW
16.2. - 17.4. Power
30-200 kW		      
1.7. - 30.9. All power categories 30-40 MW*    
1.7. – 30.10.     40-50 MW  
2027       min. 70MW
4.1. – 31.3. 30-200 kW      
1.7. - 30.9. All categories 30-40 MW*    
1.7. – 29.10.     40-50 MW  
2028       min. 70MW
3.1. – 31.3. 30-200 kW      
3.7. - 29.9. All categories 30-40 MW*    
3.7. – 31.10.     40-50 MW  

* depending on the available budget. Expected volume = volume produced with the power category 30-200 kW + volume produced with all power categories. Depending on the successive results of the calls for tenders, this breakdown could be adjusted.

Timeline of previous calls for tenders

Who to contact

Ministry of the Economy General Directorate - Energy

Address:
19-21, Boulevard Royal L-2449 Luxembourg
L-2914 Luxembourg
Phone:
(+352) 247 869 03
Email address:
info@eco.public.lu
Email address:
secretariat.energie@eco.etat.lu
Email address:
PV@eco.etat.lu
Email address:
luxeeb@eco.etat.lu
Website:
https://meco.gouvernement.lu/en.html

Klima-Agence

Address:
2, circuit de la Foire Internationale L-1347 Luxembourg Luxembourg
Phone:
(+352) 80 02 11 90
Email address:
info@klima-agence.lu
Website:
http://www.klima-agence.lu
We provide free and independent advice for your energy transition projects and on financial aid.

Related procedures and links

Procedures

Links

Further information

Legal references

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