Luxembourg city energy storage power wholesale

Why does Luxembourg have a low energy cost?

The low costs of energy in Luxembourg and the high purchasing power of its residents represent a significant barrier to achieving the energy sector targets. Low taxes result in low electricity, natural gas and heating oil prices providing little incentive to invest in renewables and energy efficiency.

Is Luxembourg a good place to invest in energy?

This is especially true for the transport sector, which in 2017 accounted for 54% of energy demand and 65% of non-ETS GHG emissions. 1 Luxembourg’s low cost of energy and the high purchasing power of its consumers are also a barrier, as they limit interest to invest in renewables and energy efficiency.

Does Luxembourg need a new electricity infrastructure?

Luxembourg aims to cover over a third of 2030 electricity demand with renewables, mostly through variable renewable energy (VRE) from PV and wind generation. The share of VRE generation in imported electricity is also expected to increase significantly. Taken together, these factors will require substantial investment in electricity infrastructure.

What challenges does Luxembourg face in the energy sector?

The government has adopted ambitious energy sector targets, including a 50-55% reduction of greenhouse gas emissions by 2030. Luxembourg faces challenges achieving those targets. Low energy prices for consumers are creating a barrier to the investments needed in energy efficiency and renewables.

How is Luxembourg transforming the European electricity market?

Luxembourg is embedded in the European electricity market, a sector that is transforming swiftly as rising shares of variable renewable generation, such as wind and solar PV, put increased attention on security of supply.

What is Luxembourg doing about energy transition?

Luxembourg is pushing for a more aggressive approach on energy transition at the EU level and in some cases has adopted national targets that exceed the requirements of EU directives. Luxembourg’s renewable energy share is growing; it reached 6.4% of gross final energy consumption in 2017.