Electricity, Gas, Oil & Electromobility

Electricity

Electricity plays a central role in our society by providing a multitude of public and private uses and services. The quality of electricity supply in Luxembourg is among the best in Europe and it is essential that its sustainability, security and affordability are ensured in the future. At the same time, the electricity sector is currently in transition to actively face the challenges arising from the decarbonisation of the different sectors and to achieve the objectives defined by the Integrated National Energy and Climate Plan (PNEC). Thus, electricity is expected to play an even more important role in the future, as it is relatively easy to decarbonise and can be used in a highly flexible way for a wide variety of end-uses, such as transport, heating and cooling, industrial processes, etc.

In the electricity sector, roper maintenance and development of the electricity market in Luxembourg and beyond will therefore be ensured. Because of its size and characteristics, interconnections with neighbouring countries are essential and will continue to be supported by a joint commitment at European and regional level. In fact, the interconnected electricity transmission network allows for the maintenance and even increase of the country's security of supply and guarantees optimal integration into the European energy market.

With the new smart meters, self-consumption and the creation of energy communities will be important elements in the energy transition, as well as the participation in flexibility or energy efficiency programmes or the use of dynamically priced electricity contracts.

Electromobility

Electromobility plays an important role in achieving the objectives of the Integrated National Energy and Climate Plan (PNEC). It contributes to the significant reduction of greenhouse gas emissions and energy consumption in the transport sector, as well as to the reduction of local air pollutant emissions and noise. To achieve the decarbonisation and energy efficiency objectives, the PNEC foresees that by 2030, 49% of the car fleet should be electrified. To achieve this, an appropriate charging infrastructure is needed at all levels. In order to ensure a basic infrastructure for public charging, it has been decided to set up a common national infrastructure called "Chargy", with 800 charging stations installed in public places and car parks, and in park-and-ride sites, 88 of which are of the "Super Chargy" high performance type, all powered by 100% renewable green electricity.

To further promote the development of electromobility, additional private charging infrastructure projects will be encouraged in the future.

In addition to the public charging infrastructure, it is also important that users of electric vehicles can benefit from a reliable and technically safe charging infrastructure at home. The Grand Ducal Regulation of 19 August 2020 on the introduction of a financial aid for the installation of private charging points for electric vehicles provides financial support to private individuals in their efforts to install a suitable charging facility.

Recharging solutions at work as well as the infrastructure dedicated to the recharging of company fleets complete the ecosystem necessary to achieve the objectives concerning electromobility in Luxembourg.

Natural gas

In the natural gas sector, maintaining security of supply remains paramount in a transition phase towards decarbonised energy use - whether through interconnections with the integrated European market or through the technical security of existing infrastructure. While the use of fossil natural gas is set to disappear by 2050, the existing gas infrastructure can play an important role in the energy transition, whether for the transport of decarbonised gas (power to gas) or green hydrogen. Thus, the innovative project of integrating the Luxembourg and Belgian markets into a single Belgian-Luxembourg gas market will continue to play an important role in the future.

Oil and petroleum products

In the field of petroleum products, a detailed analysis and evaluation of storage capacity needs on the national territory will be undertaken, while taking into account the national objectives for 2030 and the long-term perspective for 2050 retained in the PNEC. In this context, storage capacity developments at European level for 2030 and 2050 will also be analysed, with particular attention to capacity development in neighbouring countries.

This analysis should provide guidance for optimising the security of supply of petroleum products while taking into account the need to decarbonise the transport and heating sectors by 2050.