Energy Policy Review for Luxembourg

Since 2008, Luxembourg’s energy policies through to 202 has focused on mitigating CO2 emissions in and on supporting renewable energies and energy efficiency.

The country’s greenhouse gas emissions have stabilised as energy-intensive industries have scaled back their activities and the government put strong energy efficiency policies in place, notably for buildings.

Since 2009, the country’s research and development (R&D) policies have promoted eco-innovation and clean energy technologies. In 2012, government spending on energy R&D as a ratio of gross domestic product was the highest among International Energy Agency (IEA) members. Luxembourg is creating a national platform for smart meters and electric vehicles, the first of its kind country-wide roll out.

Nonetheless, Luxembourg faces several energy challenges. Oil consumption in transport is rising because of growing road fuel sales, largely the result of tax differences to neighboring countries. This increases Luxembourg’s emissions and its oil stockholding needs. Because the country imports all of its energy needs, energy security is a priority.

Luxembourg has sought to address this through greater regional integration such as merging its gas market with Belgium and increasing its electricity interconnection with France and Belgium. Yet the benefits of regional integration of wholesale energy markets have not yet translated to retail markets.

Moreover, as regional electricity trade grows and neighbouring countries introduce ambitious decarbonisation policies and capacity markets, Luxembourg will need to define its priorities for an energy strategy through 2030.

The IEA will hold an analysis review of Luxembourg’s energy policy challenges tomorrow and provide recommendations for each sector. It is intended to help guide the country towards a more secure and sustainable energy future and the development of its 2030 energy strategy.

Picture of Luxembourg (city) - view from Metz square by Pudelek (Marcin Szala) reproduced under CCL.

Tuesday 15th July 2014


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