Global Insights Energy Luxemburg
Transcription
Global Insights Energy Luxemburg
Energy Fourth Edition Contributing Editor: Geoffrey Picton-Turbervill Published by Global Legal Group CONTENTS Preface Australia Austria Geoffrey Picton-Turbervill, Ashurst LLP David A.W. Maloney AM, Allens Robert Keisler, Johannes Trenkwalder & Marlene Wimmer, CMS Reich-Rohrwig Hainz Rechtsanwälte GmbH Belgium Wouter Geldhof, Thomas Deruytter & Marthe Maselis, Stibbe Benin Charles Badou & Elias M. Syné Guidi, Charles Badou & Partners Law Firm Bolivia Enrique Barrios, Guevara & Gutiérrez S.C. Brazil Priscila Carvalho & André Serrão, Serrão Advogados Bulgaria Kostadin Sirleshtov, Pavlin Stoyanoff & Deyan Draguiev, CMS Cameron McKenna LLP – Bulgaria Branch / Duncan Weston Chile Eugenio Evans E., Francisca Ugalde S. & Andrés Peñaloza M., Cubillos Evans Abogados Congo D.R. Natacha Latere & Laetitia Molasoko N’Singa, BTM Lawyers SCA Cyprus Michael Damianos & Electra Theodorou, Michael Damianos & Co LLC Finland Christoffer Charpentier, Ilkka Perheentupa & Tanja Koivistoinen, Avance Attorneys Ltd Georgia Alexander Bolkvadze, Lasha Uplisashvili & Anri Khonelidze, BLC Law Office Germany Matthias Hirschmann & Alexander Koch, Hogan Lovells International LLP Ivory Coast Mouhamed Kebe & Hassane Kone, GENI & KEBE Japan Takahiro Kobayashi & Shigeki Okatani, Mori Hamada & Matsumoto Kazakhstan Assel Meiramgaliyeva & Umid A. Aripdjanov, Colibri Law Firm Kyrgyzstan Denis Bagrov, Colibri Law Firm Luxembourg Wouter Geldhof, Thomas Deruytter & Dirk Leermakers, Stibbe Macedonia Dragan Dameski & Ana Hadzieva Angelovska, Debarliev, Dameski & Kelesoska, Attorneys at Law Mexico Juan Carlos Serra Campillo & Jorge Eduardo Escobedo Montaño, Basham, Ringe y Correa, S.C. Mozambique Taciana Peão Lopes & Ilidio Bambo, TPLA – Taciana Peão Lopes & Advogados Associados Nigeria Kunle Obebe, Bloomfield Law Practice Portugal Mónica Carneiro Pacheco & João Marques Mendes, CMS Rui Pena & Arnaut Romania Laurentiu Pachiu, Delia Vasiliu & Radu Dudău, Pachiu & Associates Serbia Đorđe Popović, Petrikić & Partneri AOD in cooperation with CMS Reich-Rohrwig Hainz South Africa Robert Nel, Afriwise Consult Spain Gonzalo Olivera & Alberto Artés, King & Wood Mallesons Sweden Björn Winström, Dan Hanqvist & Markus Olsson, Roschier Switzerland Phyllis Scholl & Kirsten Johanna Schmidt, Bär & Karrer AG Tajikistan Khujanazar Aslamshoev & Alisher Khoshimov, Colibri Law Firm Turkey Omer Kesikli & Oya Gokalp, Kesikli Law Firm United Kingdom Geoffrey Picton-Turbervill & Justyna Bremen, Ashurst LLP USA Stephen D. Davis & John C. LaMaster, Akin Gump Strauss Hauer & Feld LLP Uzbekistan Umid A. Aripdjanov & Ravshan Adilov, Colibri Law Firm Venezuela Federico Araujo & Juan Carlos Garantón-Blanco, Torres, Plaz & Araujo 1 8 13 24 28 37 46 55 64 69 79 91 98 106 109 121 131 137 150 161 167 174 179 191 198 208 220 230 239 247 253 265 288 298 311 Luxembourg Wouter Geldhof, Thomas Deruytter & Dirk Leermakers Stibbe Overview of the current energy mix, and the place in the market of different energy sources General overview The natural energy resources of Luxembourg are scarce, a fact which obliges the country to import a significant part of its energy needs.1 Back in the 1960s, consumption of coal was significant considering the high energy needs of the steel industry. As from the mid80s, a shift towards petroleum products was mainly observed, although natural gas also became an important source of energy from the 1970s. Regarding the latter, natural gas consumption has been slightly dipping over the past few years.2 The entire quantity of natural gas consumed in Luxembourg is imported through high pressure pipelines from Belgium and Germany and marginally through a medium pressure pipeline from France. Luxembourg’s natural gas market is thus characterised by a total dependence on imports via (foreign) pipelines, except for those biogas quantities which are injected locally in the network (currently three biogas plants inject biogas for an amount of 49GWh in 2013).3 This situation is further complicated by the fact that firm capacity at the various gas entry points is insufficient.4 Moreover there are no LNG infrastructures in Luxembourg and no storage facilities due to geological limitations. Importers must thus access LNG terminals in neighbouring countries with which Luxembourg has interconnections. Storage capacity must also be found in such neighbouring countries.5 Generally speaking, the energy mix is very much divided between petroleum products (more or less 70%), and gas (more or less 25%).6 Coal is not that significant these days due to changes in the steel and iron industry back in the 1990s. The EU Renewable Energy Directive 2009/28/CE imposes on Luxembourg a target of 11% of final energy consumption to be based on renewable energy sources by 2020. In 2013 this percentage reached (only) 3.57%. In the electricity sector, the national mix per source supplied by all suppliers to endconsumers located in Luxembourg is divided as follows: renewables (57.9%) (including 51.1% of hydroelectricity); 32.1% of fossil energy (including 12.7% of natural gas); 9.6% of nuclear electricity; and 0.4% of other sources of energy.7 It is also noticeable that electricity consumption has been decreasing over recent years.8 As regards electricity production from renewables more specifically, the production is apportioned as follows: based on 2013 data, hydroelectricity is the main source of renewable energy (31.8%), followed by wind (23%), solar (20.4%), biogas (13.6%) and the remainder is composed of other sources.9 GLI - Energy Fourth Edition 137 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg Based on the latest available report of Luxembourg’s Institute of Regulation (hereinafter “ILR”), Luxembourg’s future security of electricity supply is likely to be dependent on the construction of new interconnections with neighbouring countries in the medium/ long term as well as further investments in additional electricity production facilities on Luxembourg’s territory.10 This situation is partly due to the fact that a number of nuclear production facilities of its foreign suppliers are to be closed in the future. As regards cross-border interconnections, a strengthening of interconnections is pursued with RTE (France), ELIA (Belgium) and Amprion (Germany).11 As for security of supply in the gas sector, and as mentioned earlier in this section, Luxembourg is not capable of either producing natural gas or storing it. Based on the constant increase in natural gas needs, the ILR thus considers that it will be necessary to develop greater firm capacity in the medium/long term to avoid interruptions for consumers during peak times. The International Energy Agency does indeed consider that “Luxembourg is unable to meet peak demand if the largest gas infrastructure, the entry point from Germany, is not available to the system”.12 Investments in new pipelines to develop the interconnection with France or to increase capacity with Belgium are thus to be considered.13 Calculix Calculix is a comparative device by which the best electricity or gas offer can be identified by household consumers. After its introduction for the electricity sector in 2013, since March 2015 the ILR has made the Calculix programme available for the gas sector as well.14 Next to information on prices, Calculix also provides information on the main contractual conditions. From a policy perspective, Calculix is a neutral apparatus vis-à-vis suppliers and aims at stimulating transparency in the market and providing complete and useful information to consumers for them to make an enlightened decision. As the rate of supplier switching in the household segment has been fairly low,15 Calculix is regarded as a tool which may promote greater change in consumer habits. Changes in the energy situation in the last 12 months which are likely to have an impact on future direction or policy Market coupling Flow-based market coupling On 20 May 2015, after eight years of planning and following the approval by National Regulatory Authorities (NRAs), flow-based market coupling became operational between Germany, France, Belgium, Luxembourg, the Netherlands and Austria.16 The flow-based model has been advocated as the target model for highly meshed grids (like the Central West Europe grid). Market coupling allocates capacity by optimising the total economic surplus of the different coupled spot markets’ order books, while ensuring that the physical limits of the grid are respected. The consequence of this is price harmonisation in the CWE region when sufficient capacity is available. By using a more detailed grid description, the flow-based method increases this price convergence while ensuring the same security of supply as today. Nine parties were involved in the CWE flow-based project: • two power exchanges (APX-Belpex and EPEX Spot); and • seven transmission system operators (Amprion, Creos, Elia, RTE, TenneT Gmbh Tennet B.v and Transnet BW).17 GLI - Energy Fourth Edition 138 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg The CWE Partners will remain in close contact with market participants through the regular CWE Consultative Group (CCG) meetings. Belgium and Luxembourg project – integrated gas market In May 2014 Creos Luxembourg and Fluxys Belgium signed a cooperation agreement in order to integrate the gas markets of both countries. The Belgian Energy Regulatory Authority (“the CREG”) and the ILR were consulted. The aim of such integration is to have one cross-border integrated gas market: the BeLux area. The BeLux area will be a single entry-exit system with a notional trading point, “Zeebrugge Trading Point” (or “ZTP”), where no capacity must be subscribed to transport gas from Belgium to Luxembourg or inversely. The goal is to merge both markets by 1 October 2015.18 This initiative, reflecting the European Union’s ambition to create a borderless European gas market, will be the first market integration between two European Member States. This market integration will also allow Luxembourg to enhance its security of supply in gas. Within the new model of the integrated market, the entry-exit fees between Belgium and Luxembourg will disappear and the capacity offered at the interconnection point Remich will be modified, thus establishing a link between the hubs of NetConnect Germany (NCG) and ZTP. One common balancing system will be set up in the BeLux market; the related balancing rules will be performed by a balancing operator jointly appointed by the two national Transmission System Operators. Creos Luxembourg S.A. and Fluxys Belgium S.A. will nevertheless keep their own identity as well as their organisational structure, and will keep on ensuring the management of their respective networks. The ILR decided on 22 December 2014 to suspend the subscription to interconnection capacity on the Belgian-Luxembourgish border in order to allow the new integrated market to enter into force.19 Such project is nonetheless subject to the approval of the Regulatory Authorities of both countries as regards the modalities under which a BeLux market would operate. The applicable rules would notably be based on the creation of a joint venture (currently called “BaCo”) which would be in charge of managing the rules and mechanisms relating to the balancing of the integrated market. In practice, the idea would, however, be for Creos Luxembourg and Fluxys Belgium to remain the operators of their respective networks. With regard to such a project the Belgian CREG has expressed its view, according to which it should be granted the competence to control new common undertakings such as that envisaged under the Creos-Fluxys project. Without such powers, the CREG fears that it may not be able to adequately regulate such new undertakings, as no appropriate regulatory framework allows it to do so.20 On 8 July 2015, the Belgian legislator amended the Belgian Gas Act of 1965 providing a legal basis for such so-called “common balancing company”.21 The integrated gas market renders several changes necessary, i.e. in the regulations on balancing, network access and tariffs, and in the access contract for the gas distribution system (see below). Infrastructure Société Electrique de l’Our (“SEO”), one of Luxembourg’s main generation companies, has raised the capacity of its hydropower facility in Vianden, involving major infrastructure works. The construction of “Machine n°11” began back in January 2010 and was completed in December 2014. The total capacity of the turbine now reaches 1,290 MW. Regarding GLI - Energy Fourth Edition 139 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg investment, RWE Power and Enovos Luxembourg have invested approximately €186m in this project.22 Developments in government policy/strategy/approach Government policy The Government plans to make Luxembourg a leader in terms of energy efficiency and renewable energies, and supports the creation of financial instruments such as a “climate bank” in order to back a mechanism in favour of the implementation of renewable and energy efficiency policies. In close relation to this aim, the Government has also reiterated that it will try to avoid having recourse to nuclear energy, and is opposed to the use of shale gas and fracking. Considering the issue of energy security, the Government also stressed the need to reinforce its connections with its neighbouring countries and to European networks. New energy strategy As from mid-2013, a large public consultation was launched by the Government of Luxembourg to develop a new energy strategy. Regarding the direction which has to be taken by Luxembourg in this respect, the International Energy Agency (“IEA”) has recently provided its main conclusions and recommendations.23 The IEA appeared positive regarding Luxembourg’s achievements in the field of greenhouse gas emissions, as such emissions have not increased due to strong and well-designed energy efficiency policies, notably for buildings. The agency however noticed that the use of fuel for transport was significant (mainly due to cross-border commuters), a fact which has had a negative impact on emissions and required Luxembourg to closely monitor its oil stock needs. As a result, the IEA is encouraging Luxembourg to act further upon the existing environmental tax imposed on road fuel sales. Measures regarding green mobility and public transport are also regarded as a useful means to overcome some of these difficulties. Minister Etienne Schneider took good notice of the findings of the IEA and declared that Luxembourg was to set its new energy strategy in the medium/long term. In this regard, the Minister insisted on a number of measures which are being undertaken to promote greater energy security such as: (i) the project of a strengthened electricity interconnection of the Luxembourgish network with the Belgian network which is steadily progressing; and (ii) the project of an interconnection of the Belgian and Luxembourgish gas markets which is being pursued and is the first of its kind in Europe.24 Aside from energy security, the Minister also stressed that energy efficiency was high on the political agenda, and more specifically in the industrial and building sectors. Obligations regarding energy efficiency are introduced vis-à-vis all electricity and natural gas suppliers, as well as measures aimed at strengthening energy efficiency requirements for certain buildings. Already in June 2014, Minister Schneider, with other European leaders, had stressed the importance of energy efficiency by sending a letter to the EU Commission requesting that a binding objective be set with regard to energy efficiency by 2030.25 These various measures/projects, as well as the establishment of a new energy strategy for Luxembourg, are most likely to affect the way in which energy markets in Luxembourg evolve in years to come. It appears that Luxembourg strongly supports renewable energy and energy efficiency-related projects. By contrast, nuclear development and shale gas and fracking do not seem to find much support in the political arena. GLI - Energy Fourth Edition 140 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg Greater participation of the State in the ownership of Enovos The possibility for E.ON and RWE to sell their shares in Enovos International continues to make the headlines.26 Respectively, the shares of these companies represent 28 and 36% of the overall shares of Enovos International. The State of Luxembourg as well as the Société Nationale de Crédit (“SNCI”) and Ville de Luxembourg are regarded as potential purchasers of these shares if they are made available. The position currently being considered by the State would be to purchase a sufficient number of shares for it to become the majority shareholder of the company. For the time being, the State owns more or less 25% of shares of the company. Cooperation to reach renewable energy target Although relatively low compared to the target of other EU Member States, Luxembourg’s renewable energy target of 11% is thought to be very ambitious. As several other Member States may exceed their targets in this regard, the Luxembourgish Government is in contact with such Member States to see whether a cooperation agreement could be set up (as allowed by the EU Renewable Energy Directive 2009/28/CE). The aim is to make such cooperation concrete in the course of 2015. Developments in legislation or regulation Energy performance of buildings A Regulation of 26 May 2014 amended the following Regulations: Regulation on the energy performance of residential buildings; Regulation on the energy performance of functional buildings; and the Regulation regarding gas installations.27 The main changes which have occurred were made in order to implement certain provisions of Directive 2010/31/EU on the energy performance of buildings. In summary, the main changes are the following: • The introduction of the concept of “nearly zero-energy buildings”, as well as the deadlines to reach such standard. All new “residential” buildings and “functional” buildings shall have to meet such standard as from 1 January 2019. • The introduction of (additional) rules regarding the energy performance of buildings when such buildings are rented, sold, modified, extended, etc. • Aside from these main modifications, the regulation provides for provisions on feasibility studies, the publicity of energy performance certificates, the periodic inspection of energy performance certificates, etc. A recent Governmental regulation of 28 January 2015 further increased the energy efficiency ambition for “functional” buildings (non-residential buildings).28 It imposes, amongst others, that if the building permit request is submitted after 1 July 2015, the efficiency standard to be reached is no longer “D”, but “C”. Periodic control for heating systems A Governmental regulation of 7 October 2014 introduced some new features on periodic inspection of medium-size heating installations.29 A pre-existing regulation required that gas and gasoil combustion installations undergo periodic inspection by a certified installer at least every two and four years respectively. Wood combustion installations must now undergo periodic control as well, i.e. every two years. Furthermore, with the next periodic control, the capacity of the combustion installations concerned should be verified and the certified installer must give concrete recommendations with regard to the amelioration of the energy efficiency of the heating system.30 GLI - Energy Fourth Edition 141 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg Energy efficiency, REMIT and independence of the ILR Two parliamentary acts of 19 June 2015 modify: (i) the law which organises Luxembourg’s electricity market (“Electricity Law”); (ii) the law which organises Luxembourg’s gas market (“Gas Law”); (iii) the law which organises the ILR; and (iv) the law on the wage regime of state employees.31 The modifications relate to the following: Energy efficiency in the Electricity Law and Gas Law Together with most other EU Member States, Luxembourg was late in implementing the Energy Efficiency Directive 2012/27/EU, knowing it should have done so by 5 June 2014. One of the most important changes in this regard relates to the energy efficiency obligation of energy suppliers. Article 7 of Directive 2012/27/EU obliges EU Member States (leaving a large degree of flexibility) to introduce specific energy-efficiency obligations vis-à-vis electricity/gas suppliers. Thus, gas and electricity suppliers are obliged to achieve a certain cumulative objective of energy efficiency with their customers/end consumers between 1 January 2015 and 31 December 2020. The exact objective (in percentage terms) has yet to be published in a governmental regulation. Such governmental regulation will also contain further practical details and a catalogue of standardised measures.32 REMIT The above-mentioned parliamentary acts introduce cooperation regimes between different national authorities (the ILR with the “Conseil de la concurrence” or with the judicial authorities), investigation competences for the ILR, and administrative sanctions with regard to breach of the REMIT regulation. Luxembourgish entities effecting transactions on the wholesale gas or electricity market must register with the ILR. The ILR has published details regarding the registration procedure: as from 17 March 2015 and at the latest by 7 October 2015. Such entities must register with the ILR via CEREMP (Centralised European Registry for Energy Market Participants), accessible through the website: www.remit.ilr.lu. ILR In order to comply with Directive 2009/72/EC (“the Electricity Directive”) and Directive 2009/73/EC (“the Gas Directive”), a modification of the law of 30 May 2005 concerning the organisation of the ILR, as well as of the law on the wage regime of State employees, has been enacted. These changes are aimed at ensuring the independence of the ILR when it performs its various tasks. Smart metering and meter reading modalities The Government adopted the Governmental regulation of 27 August 2014 relating to electricity and gas meter reading modalities. It sets outs intelligent meter reading intervals and governs the use and communication of metering data, both for electricity and gas-measuring devices.33 The ILR is responsible for determining the functionalities and the technical and organisational specifications of the smart metering system. A consultation in this regard was organised by the ILR in March 2014. A number of comments were provided to the ILR by various interested parties. As from 1 July 2015, each new or replaced meter must be “smart”. By 31 December 2018 for electricity and 31 December 2020 for natural gas, 95% of connected customers are expected to have a smart metering device. GLI - Energy Fourth Edition 142 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg Feed-in tariffs The new Governmental regulation of 1 August 201434 readjusts the regime applicable to feed-in tariffs for electricity produced from renewable energy sources as from 1 January 2014. The regulation increases the feed-in tariffs for almost all technologies for electricity production from renewable energy sources, and also increases the feed-in tariffs applicable for biogas. In general, it sets guaranteed feed-in tariffs for a period of 15 years. It replaces the Governmental regulation of 8 February 2008 and introduces new categories and new concepts of tariffs. Being the implementation of the EU Renewable Energy Directive 2009/28/CE, the new Governmental regulation is expected to increase the development of new projects. The regulation also adapts the system of guarantees of origin for electricity produced from renewable sources. Nonetheless, due to the new guidelines of the Commission on State Aids, the Minister for Energy has indicated that the support regime for large production installations may have to be readopted at the latest in early 2016. Balancing, network access and tariffs in the integrated gas market Between 2 February 2015 and 6 March 2015, the ILR organised a consultation on balancing, network access and tariffs to be applied in the framework of the integration of the Luxembourgish and Belgian gas markets from 1 October 2015.35 Following such public consultation the ILR adopted regulation E15/11/ILR of 8 May 2015 amending the methodology to set the gas transmission and gas distribution tariffs.36 The regulation E15/19/ILR of 15 June 2015 establishes the new Gas Distribution Code of 8 June 2015 (version 4.1).37 It will be applicable as from 1 October 2015. The Code is published on the websites of the gas distribution system operators. The regulation requires gas distribution system operators to submit before 15 July 2015 new distribution tariffs to be applied between 1 October 2015 and 31 December 2015 in order for them to be approved by the ILR. The old regulation E11/22/ILR of 7 April 2011 establishing the Gas Distribution Code is annulled as from 1 October 2015. The main changes to the Access model included in the distribution code are as follows: • No more balancing model in the Distribution Zone (ZD), as balancing is carried out in the transmission network only. • No more contract for the balancing-responsibility party. It should be highlighted that the capacity at the exit of the transmission network towards the distribution zone (PFD) will be booked by distribution system operators to the transmission system operator; suppliers will thus not have to book offtake at this point any more. Further details are given in the distribution code and in the related explanatory document. Petroleum products A law on the organisation of petroleum products was enacted on 10 February 2015. It implements Directive 2009/119/EC which imposes an obligation on Member States to maintain a minimum level of petroleum stocks and/or petroleum products.38 A Governmental regulation of 17 June 2015 implements the above law.39 Judicial decisions, court judgments, results of public enquiries Judicial decisions In recent years, one of the main judicial cases which has taken place in Luxembourg’s energy sector is the SOTEL high voltage connection case. The case concerns a project to GLI - Energy Fourth Edition 143 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg connect the industrial network of SOTEL in the area of Sanem to the French transmission grid of French company RTE. Such new infrastructure is aimed at facilitating the import of nuclear electricity from France, notably to supply the steel industry in Luxembourg.40 The connection of the SOTEL network to RTE’s network will lead to the availability of an additional 350MW of electricity.41 Fiercely opposed to such project, Greenpeace and local residents of the concerned municipalities instituted a procedure against an authorisation to build the connection. After a lengthy appeal procedure the administrative tribunal of Luxembourg decided on 31 March 2014 to allow the construction of the connection, considering the public utility character of the measure as well as the fact that measures were proposed by the Minister to protect the environment despite the construction of the connection.42 Public consultations As regards public consultations in 2014, some of the main consultations in the energy sector were held by the ILR and can be summarised as follows: In the electricity sector: A consultation on the 10-year development plan of CREOS Luxembourg S.A. was organised between 3 November 2014 and 19 December 2014. During the consultation, only two questions were submitted by the public, i.e. two questions by Twinerg. Based on the answers of the ILR it did not seem to have an impact on the 10-year development plan 2014-2023 of CREOS Luxembourg S.A. published on 26 September 2014. The plan contains a programme/listing of 220 kV HV projects.43 In the gas sector: A consultation on the general conditions of the access contract for the gas distribution system of the gas distribution system operator Creos Luxembourg S.A. took place between 15 July 2015 and 17 August 2015.44 An adaptation of such general conditions is necessary in the light of the forthcoming BeLux market integration. Major events or developments Nuclear In May 2014, the Minister for Interior Affairs, Mr. Dan Kersch, reaffirmed the position of Luxembourg regarding the French nuclear reactor of Cattenom located just miles from Luxembourg’s border.45 Luxembourg is pressing the French authorities to close the old nuclear reactor which has recently been subject to technical issues. Consequently, the debate around this specific reactor has been revived. As expressed previously, Luxembourg is not in favour of the use of nuclear energy. However, the question could be raised whether the increasing interconnection with France (see above on SOTEL high voltage connection) is not a de facto use of nuclear energy. On the other hand, the French Parliament adopted on 22 July 2015 a law on energy transition for green growth.46 It aims at decreasing the nuclear share in the French energy mix to 50% by 2020 (from 75%). It remains unclear whether the nuclear reactor of Cattenom would be one of the nuclear power plants to be decommissioned under the plan. Interconnector Creos − Elia The project envisions the realisation of an interconnection between Luxembourg and Belgium, contributing to the security of supply of both countries and allowing the transfer capability between Luxembourg, Germany, Belgium and France to be increased. GLI - Energy Fourth Edition 144 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg The interconnection is realised in two steps: • in the short-term (end 2015), a phase shift transformer is integrated and connected to existing overhead lines via an additional cable, in order to control the transit flows from Germany to Belgium; and • in the longer-term (2020), a solution with cables is studied envisioning a 1,000 MVA path between Belgium and Luxembourg. In parallel, a 1,000 MVA reinforcement of the internal Luxembourg network is being constructed in order to create a loop around Luxembourg city, including substations to feed in lower voltage levels.47 Electric mobility In September 2013, measures for the construction of a tramway line in the city of Luxembourg were agreed by the Governmental Council (“Conseil de gouvernementˮ).48 A law of 24 July 2014 has confirmed that a tramway line is to be constructed between the central station of Luxembourg and the circuit of the international fair in Kirchberg.49 In 2013 and 2014 a subsidy was made available to promote electric mobility, known as the CAR-e subsidy. The subsidy amounted to €5,000 for the purchase of a new, fully electric vehicle or a so-called plug-in hybrid vehicle if it emits less than 60g CO2/ km. However, the subsidy scheme was not extended to 2015 and came to an end on 31 December 2014. Proposals for changes in laws or regulations With regard to the promotion of alternative car fuels, the Luxembourgish Government established together with the ILR a draft proposal for a Governmental regulation on the functionalities, technical specifications, necessary number of charging points and the calendar of implementation.50 On 30 June 2015 the Luxembourgish Chamber of Commerce issued an advice on this draft regulation.51 *** Endnotes 1. 2. 3. 4. 5. 6. 7. On this see: O. Thunus for Statec, “Le Luxembourg 1960-2010: Depuis plus de 50 ans, le tissu économique Luxembourgeois et les questions de politiques internationales façonnent le mix énergétique du pays”, 31 May 2012, pp.2-3, available at: http://www. statistiques.public.lu/catalogue-publications/luxembourg/2012/PDF-02-12.pdf. Institut Luxembourgeois de Régulation, “Secteur Gaz Naturel – Consommation nationale de gaz naturel depuis 2001”, available at: http://www.ilr.public.lu/gaz/ statistiques/Consommation_gaz_2001-2013.pdf. ILR, “Rapport de l’Institut Luxembourgeois de Régulation sur ses activités et sur l’exécution de ses missions dans les secteurs de l’électricité et du gaz naturel, Année 2012”, Luxembourg, September 2013, available on the website of the ILR, p.48 and Plan national pour une croissance intelligente, durable et inclusive Luxembourg 2020, 30 April 2015, p.45. Ibid., pp.54-55. Ibid., p.49. Eurostat, “EU-28 Gross Inland Consumption – Energy Mix 2012ˮ, EU Energy in Figures – Statistical Pocketbook 2014, p.23. ILR, Mix National 2013, available on the website of the ILR. GLI - Energy Fourth Edition 145 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. Luxembourg ILR, Secteur Electricité – Consommation électrique nationale depuis 2011, available at: http://www.ilr.public.lu/electricite/statistiques/Consommation-2001-2013.pdf. ILR, Energie électrique produite à partir de sources d’énergie renouvelables en 2013, available at: http://www.ilr.public.lu/electricite/statistiques/releve_detaille_ilr/2013/ prodrenouv_2013.pdf. ILR, Rapport de l’Institut Luxembourgeois de Régulation sur ses activités et sur l’exécution de ses missions dans les secteurs de l’électricité et du gaz naturel, op. cit, pp.41, 42 and 45. Ibid, p.26. International Energy Agency, Executive summary and key recommendations of Energy Policies of IEA Countries – Luxembourg – 2014 Review, p.10. ILR, “Rapport de l’Institut Luxembourgeois de Régulation sur ses activités et sur l’exécution de ses missions dans les secteurs de l’électricité et du gaz naturel”, op. cit, p.63. http://www.ilr.public.lu/gaz/documents/communications/Communique_de_presse_ ILR_Calculix_gaz-naturel.pdf. ILR, “Rapport de l’Institut Luxembourgeois de Régulation sur ses activités et sur l’exécution de ses missions dans les secteurs de l’électricité et du gaz naturel”, op. cit, pp.32 & 37. http://www.ilr.public.lu/electricite/documents_NEW/communications/Communiquede-presse-modele-FlowBased.pdf. http://www.elia.be/en/products-and-services/cross-border-mechanisms/transmissioncapacity-at-borders/flow-based-marktkoppeling-centr-w-europa. http://www.fluxys.com/belgium/en/Services/Transmission/BeluxMarketIntegration/ MarketIntegretion1 and http://www.ilr.public.lu/gaz/documents/communications/ Communique_de_presse_ILR_Belux-v2.pdf. Le règlement E14/55/ILR du 22 décembre 2014 portant suspension des souscriptions de capacités d’entrée aux points d’interconnexion transfrontaliers du réseau de transport de gaz naturel, Mémorial A n° 266 du 30 décembre 2014, p.5,628. CREG, “Mission de conseil de la CREG auprès des autorités publiques pour une transition énergétique cohérente et équilibrée”, July 2014, available at: http://www. creg.info/pdf/Divers/20140730-MissiondeconseilFR.pdf. Loi du 8 juillet 2015 modifiant la loi du 12 avril 1965 relative au transport de produits gazeux et autres par canalisations. http://www.seo.lu/fr/Activites-principales/Machine-11/Actuel. International Energy Agency, Executive summary and key recommendations of Energy Policies of IEA Countries − Luxembourg − 2014 Review. See on this section in general: Ministère de l’économie et du commerce extérieur du Luxembourg, Communiqué, “Présentation de l’examen approfondi de la politique énergétique du Luxembourg par le directeur exécutif de l’AIE”, 16 July 2014, available at: http://www.eco.public.lu/salle_de_presse/com_presse_et_art_actu/2014/07/16_AIE /index.html. On this section see: Ministère de l’économie et du commerce extérieur du Luxembourg, Communiqué, “Les ministres Etienne Schneider et Carole Dieschbourg pour un objectif contraignant en matière d’efficacité énergétique pour 2030”, June 2014, available at: http://www.eco.public.lu/salle_de_presse/com_presse_et_art_actu/2014/06/19_Lettre CE/index.html. REUTERS, RWE, E.ON near sale of stakes in Luxembourg’s Enovos, 3 February 2015, http://uk.reuters.com/article/2015/02/03/uk-enovos-m-a-idUKKBN0L71G220150203 and LUXEMBURGER WORT, Luxembourg state interested in acquiring Enovos shares, 15 April 2014, http://www.wort.lu/en/business/luxembourg-state-interested-inacquiring-enovos-shares-534d23d0e4b07e64fb8f9101. Règlement Grand-Ducal du 26 mai 2014 modifiant 1. Le Règlement Grand-Ducal GLI - Energy Fourth Edition 146 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. Luxembourg modifié du 30 novembre 2007 concernant la performance énergétique des bâtiments d’habitation; 2. Le Règlement Grand-Ducal modifié du 31 août 2010 concernant la performance énergétique des bâtiments fonctionnels; et 3. Le Règlement Grand-Ducal du 27 février 2010 concernant les installations à gaz, J.O. Mémorial A-N°99, 12 June 2014, p.1,492. Règlement grand-ducal du 28 janvier 2015 modifiant le règlement grand-ducal modifié du 31 août 2010 concernant la performance énergétique des bâtiments fonctionnels, J.O. Mémorial A– N° 17 5 février 2015, p.201. Règlement grand-ducal du 7 octobre 2014 relatif a) aux installations de combustion alimentées en combustible solide ou liquide d’une puissance nominale utile supérieure à 7 kW et inférieure à 20 MW b) aux installations de combustion alimentées en combustible gazeux d’une puissance nominale utile supérieure à 3 MW et inférieure à 20 MW, J.O. Mémorial A – N° 195 17 octobre 2014, p.3,797. https://www.gouvernement.lu/4077544/09-heizungscheck#_ftnref2. Loi du 19 juin 2015 modifiant − la loi modifiée du 1er août 2007 relative à l'organisation du marché de l'électricité; − la loi modifiée du 30 mai 2005 portant 1) organisation de l'Institut Luxembourgeois de Régulation; 2) modification de la loi modifiée du 22 juin 1963 fixant le régime des traitements des fonctionnaires de l'Etat and Loi du 19 juin 2015 modifiant la loi modifiée du 1er août 2007 relative à l'organisation du marché du gaz naturel. http://entreprises.myenergy.lu/actualites/detail/?tx_ttnews%5BbackPid%5D= 76&tx_ttnews%5Btt_news%5D=95&cHash=942d381757dcfaf30beaaf0baea188cc. Règlement grand-ducal du 27 août 2014 relatif aux modalités de comptage de l’énergie électrique et du gaz naturel, Mémorial A n° 177 du 11 septembre 2014, p. 3,474. Règlement Grand-Ducal du 1er août 2014 relatif à la production d’électricité basée sur les sources d’énergie renouvelables et modifiant: 1. Le Règlement GrandDucal du 31 mars 2010 relatif au mécanisme de compensation dans le cadre de l’organisation du marché de l’électricité; 2. Le Règlement Grand-Ducal du 15 décembre 2011 relatif à la production, la rémunération et la commercialisation de biogaz, J.O. Mémorial A – N°154, 8 August 2014. http://www.ilr.public.lu/gaz/consultations/conspub020215/index.html. Règlement E15/11/ILR du 8 mai 2015 modifiant le règlement modifié E12/06/ILR du 22 mars 2012 fixant les méthodes de détermination des tarifs d’utilisation des réseaux de transport, de distribution et des services accessoires à l’utilisation des réseaux pour la période de régulation 2013 à 2016 et abrogeant le règlement E09/04/ ILR du 2 février 2009, J.O. Mémorial A – N° 88 22 mai 2015, 1,536. (http://www. legilux.public.lu/leg/a/archives/2015/0088/index.html.) Règlement E15/19/ILR du 15 juin 2015 arrêtant le Code de Distribution du Gaz Naturel au Grand-Duché de Luxembourg, A – N° 123 1 juillet 2015, 2638. Loi relatif à l’organisation du marché des produits pétroliers, J.O. Mémorial A – N° 28 18 février 2015, 307 Règlement grand-ducal du 17 juin 2015 portant exécution des articles 6, 7, 8 et 40 de la loi du 10 février 2015 relative à l'organisation du marché de produits pétroliers, J.O. Mémorial A – N° 137 21 juillet 2015, 2901. See InfoGreen, “Ligne Sotel: le tribunal administratif rejette le recours de Greenpeace Luxembourg”, available at: http://www.infogreen.lu/article/ligne-sotelle-tribunal-administratif-rejette-le-recours-de-greenpeace-luxembourg. Institut Luxembourgeois de Régulation, “Rapport de l’Institut Luxembourgeois de Régulation sur ses activités et sur l’exécution de ses missions dans les secteurs de l’électricité et du gaz naturel”, op. cit, p.27. See the judgment: Tribunal administratif du Grand-Duché de Luxembourg, 31 March 2014, N°32152 du rôle, available on the Greenpeace website: http://www. greenpeace.org/luxembourg/fr/news/Jugement-Sotel/. GLI - Energy Fourth Edition 147 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg 43. Consultation publique du 03 novembre au 19 décembre 2014 portant sur le plan de développement décennal du réseau de transport d’électricité, http://www.ilr.public. lu/electricite/consultations/conspub031114/Plan-decennal-2014-2023-220-kV.pdf. 44. http://www.ilr.public.lu/gaz/consultations/conspup150715/index.html. 45. L’essentiel online, “Poursuivre les démarches pour fermer Cattenom”, 16 May 2014, available at: http://www.lessentiel.lu/fr/news/dossier/cattenom/story/Poursuivreles-demarches-pour-fermer-Cattenom--31147230. 46. http://www.assemblee-nationale.fr/14/projets/pl2188.asp. 47. http://www.elia.be/~/media/files/Elia/Projects/Other/Interconnector-Creos.pdf. 48. http://www.luxtram.lu/luxtram_Calendrier-du-projet.26-2.html. 49. Loi du 24 juillet 2014 portant sur la construction d’une ligne de tramway à Luxembourg entre la gare centrale et le circuit de la foire internationale au Kirchberg, J.O. Mémorial A- N°151, 6 août 2014, p.2,348. 50. Plan national pour une croissance intelligente, durable et inclusive Luxembourg 2020, 30 April 2015, p.47. 51. Avis de la Chambre de Commerce sur le Projet de règlement grand-ducal relatif à l’infrastructure publique liée à la mobilité électrique. (4355DAA), Saisine: Ministre de l’Economie, 15 décembre 2014, Luxembourg, le 30 juin 2015. GLI - Energy Fourth Edition 148 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Stibbe Luxembourg Wouter Geldhof Tel: +32 2 533 54 76 / Email: [email protected] Wouter Geldhof (Ghent, M.L. 2000) is a partner in energy law at the law firm Stibbe (Brussels office). He assists both national and international clients from the private and public sectors in contractual, regulatory and litigious matters in energy law, including inter alia regulatory issues of grid operation (tariffs, investment plans, connection, ancillary services, etc.), new energy infrastructure, renewable energy projects (onshore and offshore wind, solar, biomass, CHP), heat projects, construction and grid connection of power generation plants, electricity and gas (supply) contracts, and CO2 emission trading. Wouter is a member of the editorial staff of the legal journal MERTijdschrift voor Milieu- en Energierecht (Journal for Environment and Energy Law), where he is responsible for energy matters. Furthermore, he has written various articles on energy and contract law and is regularly invited as a guest speaker in energy law and contract law-related conferences. Thomas Deruytter Tel: +32 2 533 53 14 / Email: [email protected] Thomas Deruytter is a lawyer in the Energy Department of Stibbe Brussels and concentrates on energy law and climate change law. Furthermore, he is a voluntary researcher at the Centre for Environmental and Energy law of the University of Ghent and he has completed a traineeship at the European Commission (DG Environment). Thomas is also a member of the Energy Law Research Forum (ELRF). He is the author of several publications in the field of energy law. Dirk Leermakers Tel: +352 26 61 81 10 / Email: [email protected] Dirk Leermakers is the executive partner of Stibbe’s Luxembourg office. Representing clients in a broad range of corporate and commercial transactions, Dirk handles matters regarding mergers and acquisitions, reorganisations and restructurings, leveraged and management-led buyouts and joint ventures. Dirk is also active in securities law, private equity and venture capital, relations between shareholders – including shareholder litigation and commercial contracts, with a special focus on distribution. In addition to the Luxembourg Bar, Dirk has been admitted to the Brussels Bar (1979), New York State Bar (1987) and the State of California Bar (2002). Stibbe 25 Rue de Loxum, 1000 Bruxelles, Belgium Tel: +32 2 533 54 76 / Fax: +32 2 533 52 12 / URL: http://www.stibbe.com GLI - Energy Fourth Edition 149 © Published and reproduced with kind permission by Global Legal Group Ltd, London www.globallegalinsights.com Other titles in the Global Legal Insights series include: • Banking Regulation • Bribery & Corruption • Cartels • Commercial Real Estate • Corporate Tax • Employment & Labour Law • International Arbitration • Litigation & Dispute Resolution • Merger Control • Mergers & Acquisitions Strategic partners: www.globallegalinsights.com