Luxembourg

Overall assessment

Updated December 2022

Luxembourg has transposed provisions on RECs through a series of legislation, regulations and regulatory decisions. In particular, the transposition has focused on creating a legal framework for allowing shared self-production and consumption for renewable electricity production owned by the community. This activity is treated as self-consumption, in order to avoid burdensome supply regulation. Duties for the DSO and REC have also been clarified. Luxembourg has not officially built out an explicit enabling framework, and it has not undertaken an assessment of potential and barriers. Nevertheless, Klima Agence, a national agency, also provides information on energy communities. A temporary investment aid scheme was adopted in October 2022, and a Government Order provides for support for PV production by RECs in the form of feed-in tariffs.

Overall, Luxembourg has already developed some minor support schemes targeted at RECs, and has addressed some aspects of an enabling framework for RECs in its transposition process. However, it will be important to address other identified gaps, for instance around making RECs more available to vulnerable, lower income and energy poor households, and building capacity of local authorities.

Detailed assessment

Assessment of obstacles and potential for development of ECs

Not addressed in the transposition.

Removal of unjustified regulatory & administrative barriers

Shared electricity is explicitly treated as self-consumed energy, for the purposes of regulation. This allows it to be treated outside of regulations for retail suppliers.

DSO duties around cooperation with ECs and facilitation of energy sharing

Communities are entitled to share renewable energy production for the consumption of the members within a 15 minute netting period. Rights and duties for the DSO and other market actors has been developed through legislation and subsequent regulations. The DSO is in charge of collecting data on the energy taken from the grid, consumed, produced and shared. It shares this data with the REC and the suppliers. The DSO must set up an IT platform so that the REC can access the consumption and production data of its member and allocate the shared energy. The REC itself is free to define its own allocation key for how the energy will be shared among the members. The REC must also report via the same platform the shared energy distribution monthly.

Fair, proportionate, and transparent registration & licensing procedures

The creation or dissolution of the REC must be notified to the NRA and DSO no later than when it happens. On a yearly basis, the REC also needs to notify the DSO and NRA with a list of the REC’s members’, their suppliers, the list of production units, and an energy report regarding consumption and production by the community and its members.

Incentives connected to network tariffs based on a CBA

Energy sharing should be done without prejudice of grid access, grid tariffs, fees, levies and taxes applicable to each member of the CER. The DSO, or the suppliers, require the payment of grid tariffs, fees and levies. The legislation does not provide for the opportunity to provide incentives based on a cost-benefit analysis, and none has been undertaken.

Non-discriminatory treatment as market participant

The legislation copies the text of the Renewables Directive to clarify that energy communities have a right to access different energy markets, both directly and through aggregation, under non-discriminatory conditions. However, there is no general provision preventing RECs from discriminatory treatment, generally.

Accessibility to low-income & vulnerable households

Not addressed in the transposition.

Tools to access finance

In October 2022, the Government announced an investment aid scheme for installing PV on buildings and for self-consumption, including through a REC. It has a budget of 30 million euros, although it only runs through February 2023. It is unclear whether there will be more stable investment support put in place to help RECs start up projects.

Tools to access information

Klima Agence provides necessary information on support schemes and on producing energy collectively. A toolbox provided by the Agency supports the development of energy communities that are energy cooperatives.

Regulatory capacity building for public authorities

Not addressed in the transposition.

NECP reporting on enabling frameworks

Not addressed in the transposition. Member States are required via the Governance Regulation (2018/1999) to report on their enabling frameworks for RECs by 15 March 2023.

Support Scheme adapted for RECs

There are feed-in tariffs for photovoltaic installations between 30 and 500 kWp that are owned by energy communities. Cooperatives and civil enterprises made of at least 7 members, which are no-profit associations, natural persons and foundations, are eligible for a higher feed-in tariff when producing electricity from photovoltaic units.