Production of electricity from renewable energy sources

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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 20 MWp (depending on the type of installation). In principle, calls for tender are held once a year.

The 6th call for tenders with a view to obtaining operating aid (market premium contract over 15 years) for the construction and operation of solar photovoltaic power plants in Luxembourg is currently underway. The deadline for submission of tenders is 29 November 2024 (at noon, 12.00).

You can request the tender specifications by email to: PV@energie.etat.lu.

The publication notice can be consulted here (French, Pdf, 163 Kb).

The 3rd call for tenders with a view to obtaining investment aid for solar photovoltaic power plants is also ongoing. Its functioning and conditions are slightly different. All information about this call for tenders can be found here.

Please note: the same project cannot be tendered simultaneously in the 2 calls for tenders.

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 the 2 calls for tenders relating to operating aid and investment aid:

Year projects awarded Total volume required (in MW) Call for tenders for operating aid: volumes to be tendered (in MW) Call for tenders for investment aid: expected volumes (in MW)
2024 min. 70 50 30-40*
2025 min. 70 40-50 30-40*
2026 min. 70 40-50 30-40*
2027 min. 70 40-50 30-40*
2028 min. 70 40-50 30-40*

*depending on the available budget. Depending on the successive results of the calls for tender, this breakdown could be adjusted.

Timeline of previous calls for tenders

Who to contact

Related procedures and links

Procedures

Investment aid for the construction and operation of solar photovoltaic power plants following a call for tenders

Links

Further information

Legal references

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