Energy Policies of IEA Countries

International Energy Agency

1990-0082 (online)
1021-3872 (print)
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This series consists of two components. The first is an annual compilation by the International Energy Agency containing a broad analysis of recent trends and an easily accessible overview of energy policy during the last 12 months along with summaries of individual country reports done during the period. It also presents the major findings of the latest World Energy Outlook, key statistical information and brief summaries of major IEA publications released during the past year. The second component is the set of country reviews produced each year. IEA countries are on a five-year review cycle, which means that approximately five countries are reviewed in detail each year and published as part of the Energy Policies of IEA Countries series.

Energy Policies of IEA Countries: Luxembourg 2014

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International Energy Agency

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16 July 2014
9789264211391 (PDF)

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This review analyses the energy policy challenges facing Luxembourg and provides 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.

It finds that since 2008, Luxembourg’s energy policy has focused on mitigating CO2 emissions in transport and industry and on supporting renewable energies and energy efficiency towards 2020. Luxembourg’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 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 neighbouring 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.

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Table of Contents

1. Executive Summary and KeyRecommendations  7
-Executive summary 7
-Shaping progress 9
-Key recommendations 12
2. General Energy Policy 17
-Country overview 17
-Supply and demand 19
-Institutions 22
-Key policies 23
-Assessment 24
-Recommendation 26
3. Climate Change 27
-Overview 27
-Energy-related CO2 emissions 28
-Institutions 30
-Policies and measures 31
-GHG emissions, targets and projections 31
-Assessment 38
-Recommendations 39
4. Energy Efficiency 41
-Total final consumption 41
-Institutions 44
-Policies and measures 44
-Assessment 53
-Recommendations 54
5. Electricity 59
-Overview 59
-Supply and demand 59
-Regulation 64
-Networks 65
-Combined heat and power 68-Market structure 68
-Retail market and prices 71
-Electricity security 76
-Assessment 82
-Recommendations 84
6. Oil 87
-Supply and demand 87
-Oil market and infrastructure 88
-Oil prices and taxes 90
-Security of oil supply 92
-Assessment 92
-Recommendations 93
7. Natural Gas 95
-Supply and demand 95
-Natural gas infrastructure 96
-Natural gas market structure and regulation 98
-Security of gas supply 99
-Natural gas prices 100
-Assessment 102
-Recommendations 103
8. Renewable Energy 105
-Renewable energy supply 105
-Institutions 107
-Policies and support measures 107
-Assessment 112
-Recommendations 114
9. Energy Technology Research, Development, Demonstration and Deployment 115
-Overview 115
-Institutional framework 116
-Funding 119
-International collaboration 120
-Assessment 120
-Recommendations 121
Annex A. Organisation of the review 125
Annex B. Energy balances and key statistical data 127
Annex C. International Energy Agency Shared Goals 133
Annex D. Glossary and list of abbreviations 135

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