Recherche BMU

Research RES LEGAL – Support system
Country: Luxembourg
1. Overview of support system
Overview of support
system
Support schemes
Promoted technologies
Statutory provisions
In Luxembourg, electricity from renewable sources is promoted through a price regulation system based on a feed-in tariff.
Furthermore, renewable energy systems are supported through subsidies. Private individuals operating small solar systems
are entitled to tax benefits.
 Price regulation. Electricity generated from renewable energy is promoted through a feed-in tariff. The operators of
renewable energy systems are entitled against the grid operator to the conclusion of a contract on the purchase of the
electricity they produce.
 Subsidies. The installation of solar systems in private households is incentivised by investment grants. Companies
may also receive grants for investments in renewable electricity generation.
 Tax regulation mechanisms. Income from photovoltaic systems generating 1 to 4 kWp is exempt from income tax.
In Luxembourg, the feed-in tariff applies to electricity generated from any source of renewable energy except for geothermal
energy. Investment grants apply to electricity generated from any renewable energy source, while grants for private
households and tax benefits promote solar energy only.
 Loi du 18.02.2010 (Loi du 18 février 2010 – Act of 18 February 2010)
 RGD 20.04.2009 (Règlement instituant un régime d'aides pour la promotion de l'utilisation rationnelle de l'énergie et la
mise en valeur des énergies renouvelables.- Regulation establishing a support system for efficient energy use and
renewable energy)
 RGD 8.2.2008 (Règlement relatif à la production d’électricité basée sur les sources d’énergie renouvelables –
Regulation on the generation of electricity based on renewable energy sources)
 Circulaire du 23.5.2003 (Circulaire du directeur des contributions L.I.R. n°14/2 du 23 mai 2003 – Circular of the
financial authority L.I.R. No. 14/2 of 23 May 2003)
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2. Basic information on legal sources
Name of legal source
(original language)
Loi du 18 février 2010 relative à un
régime d'aides à la protection de
l'environnement et à l'utilisation
rationnelle des ressources naturelles.
Règlement grand-ducal du 20 avril 2009
instituant un régime d'aides pour la
promotion de l'utilisation rationnelle de
l'énergie et la mise en valeur des énergies
renouvelables.
Règlement grand-ducal du 8 février 2008
relatif à la production d’électricité basée
sur les sources d’énergie renouvelables
Act of 18 February 2010 establishing
a support system for environmental
protection and efficient energy use
Loi du 18/02/2010
Grand-Ducal Regulation of 20 April 2009
establishing a support system for efficient
energy use and renewable energy
RGD 20/04/2009
Grand-Ducal Regulation of 8 February
2008 on the generation of electricity based
on renewable energy sources
RGD 08/02/2008
28/04/2009
01/01/2008
Promoting energy-saving measures and
renewable energy, especially photovoltaic
systems.
This regulation is a set of rules for
subsidies for the use of renewable energy
by private individuals, non-profit
organisations, private and public real
estate developers (except for the state).
http://www.legilux.public.lu/leg/a/archives/2
009/0083/a083.pdf#page=2
Promoting the use of renewable energy,
especially through a feed-in tariff.
Name of legal source (full
name)
Name of legal source
(English)
Abbreviated form
Entry into force
Last amended on
Future amendments
Purpose
Relevance for renewable
energy
Link to full text of legal
source (original
language)
Detailed provisions on the support
schemes for environmental
protection and energy efficiency.
This Act applies to renewable
electricity generation (Art. 8).
http://www.legilux.public.lu/leg/a/archi
ves/2010/0044/a044.pdf#page=2
This regulation promotes renewable
energy only.
http://www.eco.public.lu/documentation/leg
islation/reglements/2008/02/energies.pdf
Link to full text of legal
source (English)
2
Name of legal source
(original language)
Circulaire du directeur des
contributions L.I.R. n°14/2 du 23 mai
2003
Name of legal source (full
name)
Name of legal source
(English)
Circular of the financial authority
L.I.R. No. 14/2 of 23 May 2003
Circulaire du 23.5.2003
Abbreviated form
Entry into force
23/05/2003
Last amended on
Future amendments
Purpose
Relevance for renewable
energy
Link to full text of legal
source (original
language)
Promoting photovoltaic systems
The circular is based on the Income
Tax Act of 4 December 1967 and
promotes renewable energy only.
http://www.impotsdirects.public.lu/legi
slation/legi03/Circulaire_du_23_mai_
2003.pdf
Link to full text of legal
source (English)
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3. Further information
Institution (name)
Ministère de l’Economie et du
Commerce extérieur Ministry of Economics and
Foreign Trade
Agence de l’Energie S.A. –
Energy agency
Enovos Luxembourg S.A.
fonds nova naturstroum –
Investment fund
Website
Name of contact person
(optional)
http://www.eco.public.lu/
Telephone number
(head office)
+352 247 824 78
http://www.energieagence.lu/
+352 406 564
http://www.enovos.eu/lu/index.php?id=269
+352 273 71
E-mail (optional)
info(at)eco.public.lu
info (at)
energieagence.lu
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4. Support schemes
4.1. Subsidy I (Regime d´aides pour la promotion de l´utilisation rationelle de l´énergie et la mise en valeur des énergies renouvelables)
Abbreviated form of legal
source(s)
Country-specific support system
RGD 20/04/2009
Private individuals, non-profit organisations and private or public real estate developers (except for the state) installing
PV systems with a maximum capacity of up to 30 kWp are subsidised by the state, which awards investment grants up to
a certain maximum.
Only projects implemented within the territory of the Grand Duchy of Luxembourg are eligible (Art. 1 RGD 20/04/2009).
The subsidy scheme is based on agreements. Entitlement arises when a subsidy is awarded by the Minister of
Environment (Art. 1 (2) RGD 20/04/2009).
General information
Only solar energy is eligible for subsidies.
Wind energy
Eligible (Article 8 RGD 20/04/2009).
Solar energy
Promoted technologies
Amount
Beneficiaries
Procedure

Systems generating less than 30 kWp (Art. 8 RGD 20/04/2009)
Geothermal energy
Biogas
Biomass
Hydro-electricity
The subsidy amounts to 30% of the installation costs, subject to a maximum of 1,650 € per kWp (Art. 8 RGD
20/04/2009).
The following expenses are eligible: PV modules, mounting system, wiring, inverter, electrical protection devices, meter
and installation costs.
This scheme applies to private individuals, non-profit organisations and public or private real estate developers (except
for the state) (Art. 1 RGD 20/04/2009).
The obligated party is the Ministry of Environment (Art. 1 RGD 20/04/2009).
Procedure
Applications for grants shall be submitted to the competent Ministry between
01/01/2008 and 31/12/2012 (Art. 17 RGD 20.04.2009).
Competent authority
"Administration of the Environment" (Administration de l´environnement, Art 16
RGD 20/04/2009)
Flexibility Mechanism
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State
The subsidy scheme is funded by the state. The funds are provided from the
budget of the Ministry responsible for energy policy (Art. 8 RGD 20/04/2009).
Consumers
Funding
System operator
Grid operator
Distribution mechanism
4.2. Subsidy II (Régime d´aide à la protection de l´environnement et à l´utilisation rationnelle des ressources naturelles)
Abbreviated form of legal
source(s)
Loi du 18/02/2010
Companies investing in renewable electricity generation are eligible for investment grants.
Only projects implemented within the territory of the Grand Duchy of Luxembourg are eligible (Art. 3 Loi du 18/02/2010).
Country-specific support system
Promoted technologies
Amount
The subsidy scheme is based on agreements. Entitlement arises when a subsidy is awarded by the Ministers of
Economy and Finance (Art. 1 Loi du 18/02/2010).
General information
All renewable electricity generation technologies are eligible.
Wind energy
Eligible (Art. 2 u) Loi du 18/02/2010).
Solar energy
Eligible (Art. 2 u) Loi du 18/02/2010).
Geothermal energy
Eligible (Art. 2 u) Loi du 18/02/2010).
Biogas
Eligible (Art. 2 u) Loi du 18/02/2010).
Biomass
Eligible (Art. 2 u) Loi du 18/02/2010).
Hydro-electricity
Eligible (Art. 2 u) Loi du 18/02/2010).
Grants may cover up to 45% of the additional costs arising from the use of renewable energy as compared to nonrenewable sources. The grant may increase by 20 percentage points for small enterprises and by 10 percentage points
for medium-sized enterprises (Art. 8 Loi du 18/02/2010).
This scheme applies to enterprises (Art. 3 Loi du 18/02/2010).
Beneficiaries
Procedure
The obligated parties are the Ministries in charge of economy and finance (Art. 1 Loi du 18/02/2010).
Procedure
Applications shall be submitted to the Ministry of Economy before the investment is
made (Art. 11 Loi du 18/02/2010). Art. 11 contains a list of the required documents.
Subsidies are awarded by joint decision of the Ministries of Economy and Finance.
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Competent authority
Ministry of Economy (Art. 11 Loi du 18/02/2010).
State
The subsidy scheme is funded by the state. The funds are provided from the
budget of the Ministries of Economy and Finance (Art. 1 Loi du 18/02/2010).
Flexibility Mechanism
Consumers
Funding
System operator
Grid operator
Distribution mechanism
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4.3. Loan (Name of support scheme)
Abbreviated form of legal
source(s)
Country-specific support system
General information
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
Promoted technologies
Amount
Beneficiaries
Procedure
Procedure
Competent authority
Flexibility Mechanism
State
Consumers
Funding
Grid operator
System operator
Distribution mechanism
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4.4. Feed-in tariff (name of scheme)
Abbreviated form of legal
source(s)
Country-specific support system
RGD 08/02/2008
In Luxembourg, electricity from renewable sources is promoted through a price regulation system based on a feed-in
tariff. All renewable electricity generation technologies are eligible, except for geothermal energy (Art. 4 RGD
08/02/2008). The amount of feed-in tariff differs for the various technologies and depends on the system size. The feedin tariff is guaranteed for a period of 15 years.
Only systems within the territory of the Grand Duchy of Luxembourg are eligible (Art. 1 RGD 08/02/2008).
All renewable electricity generation technologies except for geothermal
energy are eligible under the following conditions:

General information

Wind energy
Solar energy
Promoted technologies
In general, systems shall be commissioned on or after 01/01/2008.
st
Only systems commissioned after 1 January 2008 are eligible for the tariff
(Art. 6 (1) RGD 08/02/2008).
Special regulations for biogas systems. Biogas systems are eligible only
if they were commissioned after 1st January 2007 and renewed or
extended thereafter to increase their output by at least 20% (Art. 6 (2)
RGD 08/02/2008).
Eligible (Article 7 RGD 08/02/2008).
Eligible under the following condition:

Systems shall generate less than 1 MWp (Art. 8 (2) RGD 08/02/2008).
Geothermal energy
Eligible under the following condition:
Biogas

Systems shall generate less than 2,500 kW (Art. 10 RGD 08/02/2008).
Eligible under the following condition:
Biomass

Systems shall generate less than 5 MW (Art. 12 RGD 08/02/2008).
Eligible under the following condition:
Hydro-electricity

Systems shall generate less than 6 MW (Art. 9 RGD 08/02/2008).
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General information
Wind energy
Solar energy
Geothermal energy
Biogas
Amount
Biomass
Hydro-electricity
General information
The amont of tariff varies for every technology (Art. 7-13 RGD 08/02/2008).
8.27 €ct per kWh (Art. 7 RGD 08/02/2008)
37.0 €ct – 42.0 €ct per kWh (according to system size, Art. 8 RGD 08/02/2008)
12.0 €ct – 15.0 €ct per kWh (according to system size, Art. 10 RGD 08/02/2008)
Biomass: 12.5 €ct – 14.5 €ct per kWh (according to system size, Art. 12 RGD
08/02/2008)
Wood waste: 11.0 €ct – 13.0 €ct per kWh (according to system size, Art. 13 RGD
08/02/2008)
8.5 €ct – 10.50 €ct per kWh (according to system size, Art. 9 RGD 08/02/2008)
The tariff decreases over time: The tariff for new systems depends on the source
of energy and the year of commissioning and decreases according to a
percentage set by law (Art. 7-12, RGD 08/02/2008). The tariff in force in the year
of commissioning is applicable during the entire eligibility period.
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
Degression
Cap
Eligibility period
The tariff is guaranteed for a period of 15 years, starting on the day of the first electricity export. Renewed or extended
biogas stations are entitled to 20 years of feed-in tariff (Art. 6 (4)-(5) RGD 08/02/2008).
The persons eligible are the operators of renewable energy systems (Art. 5 (6) RGD 08/02/2008).
Beneficiaries
Procedure
The person obligated is the grid operator (Art. 5 (5) RGD 08/02/2008).
Procedure
The operator of a given energy system and the grid operator conclude an
agreement. This agreement shall be based on a model contract and approved by
the regulatory authority (Art. 5 (5) RGD 08/02/2008).
Competent authority
Flexibility Mechanism
Funding
State
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Consumers
Grid operator
The costs of the feed-in tariff are borne by the final consumers.
Gelöscht
System operator
Distribution mechanism
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4.5. Premium tariff (name of support scheme)
Abbreviated form of legal
source(s)
Country-specific support system
Promoted technologies
Amount
Degression
General information
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
General information
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
General information
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
Cap
Eligibility period
Beneficiaries
Procedure
Procedure
Competent authority
12
Flexibility Mechanism
State
Consumers
Funding
Grid operator
System operator
Distribution mechanism
13
4.4.
Quota system (name of support scheme)
Abbreviated form of legal
source(s)
Country-specific support system
Promoted technologies
Amount
General information
Wind energy
Solar energy
Geothermal energy
Biogas
Biomass
Hydro-electricity
Amount of quota and period of
application
Adjustment of quotas
Number of certificates
according to technology
Minimum price per certificate
Fees and penalty charges
International certificate trade
International applicability
Flexibility Mechanism
Beneficiaries
Procedure
Procedure
Funding
Competent authority
State
14
Consumers
Grid operator
System operator
Distribution mechanism
15
4.5.
Tax regulation mechanisms (name of support scheme)
Abbreviated form of
legal source(s)
Country-specific
support system
Promoted
technologies
Circulaire du 23.5.2003
Income from the sale of electricity generated by photovoltaic systems with a capacity of 1 - 4 kWp is exempt from income tax, as
the sale of photovoltaic electricity is not deemed a commercial activity.
Only systems within the territory of the Grand Duchy of Luxembourg are promoted.
General information
Only electricity generated from solar energy is eligible.
Wind energy
Solar energy
Systems generating 1 to 4 kWp are eligible (par. 4.1.1 circulaire du 23.5.2003).
Geothermal energy
Biogas
Biomass
Hydro-electricity
Amount
( X ) statutory basis
Beneficiaries
Entitlement to the tax benefit is based on the circular of the financial authority and the Income Tax Act of 4 December 1967.
Entitled party The persons entitled are the operators of photovoltaic systems (par. 4.1.1. Circulaire du 23.5.2003).
Obligated
The obligated party is the financial authority (par. 4.1.1. Circulaire du 23.5.2003).
party
Procedure
Procedure
Income from the sale of electricity generated by small photovoltaic systems is deemed noncommercial. For this reason, it is not subject to tax. However, investments in such a system
are deemed private investments and are thus not tax-deductible (par. 4.1. Circulaire du
23.5.2003).
Competent authority
Flexibility Mechanism
State
Funding
This incentive is funded by the state, which receives lower revenue due to the tax reduction.
Consumers
Grid operator
16
System operator
Distribution mechanism
17