Renewable energy

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In addition to energy efficiency, the development of renewable energy is crucial to achieving the goal of carbon neutrality by 2050. Indeed, Luxembourg must aim to cover 100% of its final energy consumption from renewable sources.

Energy supply will have to be sustainable, secure and competitive in a context of decarbonisation and digitalisation. The transformation of the centralised production system towards a more decentralised system will be a key element of the energy transition. Consumers will be involved in the implementation of energy-demand flexibility to facilitate the integration of renewables.

The energy system will be heavily electrified. This electrification will make it possible to make the best use of electricity produced from renewable energy sources. The different sectors will be interconnected in order to allow an increasing share of renewable electricity to be fed into the grid and to optimise its use. The balance and security of the renewable energy system will be ensured by sectoral coupling and, by 2050, by H2 technologies, e.g. Power-to-X.

The following are some of the priorities for achieving the objectives set out in Luxembourg's Integrated National Energy and Climate Plan (NECP):

  • Solar offensive through:
    • Tenders for large photovoltaic installations;
    • Appropriate aid schemes;
    • Self-consumption and sharing of renewable electricity.
  • Expansion of wind energy through the continued development of wind power installations;
  • Development and implementation of a solar and thermal cadastre;
  • Use of wood according to the criteria of sustainability and availability in the Greater Region; priority should be given to the use of waste wood in accordance with the principle of cascading use within a circular economy approach;
  • In the field of biogas, the focus will be on increasing the use of manure and waste to promote the beneficial effects of biogas plants on soil, air and water;
  • Targeted expansion of heat produced by renewable energy: heat pumps will become standard in new and renovated buildings. Medium depth geothermal energy will be explored further (especially in the south of the country) and district heating networks will be promoted where economic viability is assured. These networks will be supplied with either renewable heat or waste heat;
  • In the field of mobility, the promotion of electromobility powered by renewable electricity is the main pillar, alongside second-generation biofuels, which will still be needed for some time. Renewable hydrogen (French, Pdf, 7.40 Mb) will have a role to play especially in the mobility of heavy goods vehicles.

However, given the size of Luxembourg's territory, the national potential is limited. Interconnections with neighbouring countries play a key role in renewable electricity production, as does cooperation at European level.


As far as bilateral or multilateral initiatives are concerned, existing structures are the natural framework for such projects: the Benelux and Luxembourg's subsequent membership of the North Seas Energy Cooperation (NSEC), as well as the Pentalateral Energy Forum (Germany, France, Benelux, Austria, Switzerland). The Benelux/NSEC provides Luxembourg with access to the sea (in a manner of speaking) and to offshore wind energy. The European Commission has estimated that offshore wind in the North Sea could supply up to 12% of the EU's electricity consumption by 2030.

In addition to these bilateral or multilateral initiatives, Luxembourg also intends to make full use of the European Financing Mechanism, which allows European countries to join together to develop and finance renewable energy projects, from which the money will be invested in concrete and clearly identifiable projects for Luxembourg taxpayers.