Remuneration for electricity produced by renewable sources is guaranteed in accordance with the Grand Ducal Regulation of the 1st August 2014 and the Grand Ducal Regulation of the 12th of April 2019.
Different techniques enable the generation of electricity and/or heat from renewable sources. Each case qualifies for tariffs defined by the legislation
There are two types of remuneration: market premiums and compensation by feed-in tariffs.
- Remuneration under the market premium scheme applies to installations with a nominal electrical capacity of 400 kW or more, in accordance with the conditions established by law.
Within this framework, the operator sells the electricity on the market through a freely chosen electricity supplier or direct marketer based in Luxembourg. If the price obtained is lower than the legally defined remuneration or the tariff determined through a tender procedure, the grid operator compensates the difference by means of a variable market premium.
This premium is guaranteed for 15 years from the date of the first injection of electricity into the grid. The grid operator provides a standard contract for this purpose. - Remuneration by feed-in tariffs, on the other hand, consists of a direct payment to the operator at a pre-determined purchase rate.
Regardless of the valuation method chosen by the operator, whether it’s the market premium or the remuneration based on feed-in tariffs, a monthly statement is issued, and the operator receives an amount corresponding to the energy injected.
1. Wind power
Wind power plants are eligible for a market premium, whereby the reference remuneration is defined in the Grand Ducal Regulation of 1 August 2014 on electricity generation from renewable energy sources.
| Compensation | 92 × (1-(n-2014) × 0.25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
2. Photovoltaics
Benefit now from attractive remunerations for the electricity you produce and feed back into the electricity grid! The new compensation is valid for 15 years from the initial feed-in.
Installations with a nominal capacity of more than 200 kW can benefit from a market premium in the context of calls for tender.
3. Hydroelectric power
Compensations available for hydroelectric power generation
| Power class | Compensation |
|---|---|
| nominal electrical power ≤ 300 kW | 180 × (1-(n-2014) × 0.25/100) €/MWh |
| 300 kW < nominal electrical power ≤ 1 MW | 150 × (1-(n-2014) × 0.25/100) €/MWh |
| 1 MW < nominal electrical power ≤ 6 MW | 125 × (1-(n-2014) × 0.25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
4. Biogas
Compensations available for electricity production from biogas
| Power class | Compensation |
|---|---|
| ≤ 100kW | 265 (1-(n-2023) × 0,25/100) €/MWh |
| > 100kW to ≤ 200kW | 208 (1-(n-2023) × 0,25/100) €/MWh |
| > 200kW to ≤ 500kW | 188 (1-(n-2023) × 0,25/100) €/MWh |
| > 500kW to ≤ 2500kW | 162 (1-(n-2023) × 0,25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
An additional heat premium of up to €50/MWh of marketed heat, as well as a manure premium of up to €60/MWh can be granted, in accordance with the conditions defined by the regulations.
Remuneration based on the market premium principle applies to a rated electrical output of 400 kW or more, also in accordance with the conditions defined by the statutory regulations.
5. Gases from sewage treatment plants
| Installations that have received aid under Art. 65 of the amended Law of 19 December 2008 on water | 65 × (1-(n-2014) × 0.25/100) €/MWh |
| Other installations | 120 × (1-(n-2014) × 0.25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.
6. Solid biomass
Compensations available for solid biomass
| Power class | Compensation |
|---|---|
| nominal electrical power ≤ 1 MW | 163 × (1-(n-2014) × 0.25/100) €/MWh |
| 1 MW < nominal electrical power ≤ 10 MW | 143 × (1-(n-2014) × 0.25/100) €/MWh |
| nominal electrical power > 10 MW | 90 × (1-(n-2019) × 0.25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.
7. Waste wood
Compensations available for waste wood
| Power class | Compensation |
|---|---|
| nominal electrical power ≤ 1 MW | 95 × (1-(n-2022) × 0,25/100) €/MWh |
| 1 MW < nominal electrical power ≤ 10 MW | 85 × (1-(n-2022) × 0,25/100) €/MWh |
| nominal electrical power > 10 MW | 80 × (1-(n-2019) × 0.25/100) €/MWh |
Where: n = calendar year of start of electricity feed-in
An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.
8. High efficiency cogeneration
The electrical energy fed into the grid by the cogeneration plant shall be remunerated in accordance with the Grand Ducal Regulation of 26 December 2012 on the generation of electricity based on high-efficiency cogeneration.
9. Feeding biogas into the natural gas network
Compensations available for the introduction of biogas into the natural gas network
| Conditions | Compensation (GCV) |
|---|---|
| First feed-in took place before 1 January 2012 | 65 €/MWh until 31 dec. 2014 90 €/MWh from 1 jan. 2015 |
| First feed-in took place before 1 January 2014 | 62,5 €/MWh until 31 dec. 2014 87,5 €/MWh from 1 jan. 2015 |
| First feed-in took place after 1 January 2014 and before 1 January 2023 | 80 €/MWh |
| First feed-in took place on or after 1 January 2023 with a maximum treatment capacity of 150 Nm3 or less | 133 €/MWh |
| First feed-in took place on or after 1 January 2023 and with a maximum treatment capacity greater than 150 Nm3 | 90 €/MWh |
| Fifteen-year period has expired | 70 €/MWh |
The kWh corresponding to the gross calorific value (GCV) of the biogas fed in.
The legislation defines the compensations and regulates the marketing of biogas. Biogas producers must be registered with the ILR and comply with the regulations of this Institution.
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