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
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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
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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
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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
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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.
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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
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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.
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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
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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.
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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.
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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
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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/.
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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.
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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
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