New subsidies for biogas in Luxembourg

02/10/24 - News

The Grand-Ducal regulation of 31 July 2024 introduces new remuneration for the injection of biomethane and the production of electricity from biogas. The aim of this measure is to encourage the sustainable use of slurry, manure and other residues.

New tariffs for injecting biomethane into the gas network

Biogas plants injecting biomethane into the natural gas network for the first time since 1 January 2023 will benefit from new tariffs for injecting biomethane. Smaller facilities will benefit from an additional remuneration class. In addition, a residual tariff has been introduced for existing facilities after 15 years of operation, to encourage them for a further 10 years.

A bonus for slurry has been introduced with retroactive effect to 1 January 2023, with conditions on the origin of the farmyard manure, to promote the use of slurry and manure in existing and new facilities by up to 90%.

The criteria and procedures for renewing existing facilities at the end of the remuneration period have also been defined.

New feed-in tariffs for electricity produced from biogas

New tariffs have been introduced for the injection of electricity produced by biogas plants whose first injection takes place from 1 January 2023. To exploit the potential of slurry and manure on farms, the remuneration categories have been revised and a category has been introduced for small installations. Facilities injecting electricity for the first time from 1 January 2023 must register in a register of facilities limited to 13 MW to qualify for these remunerations. In addition, residual remunerations have been increased for installations that signed a contract retroactively to 1 January 2023.

With retrospective effect from 1 January 2023, the bonus for slurry is increased and supplemented by conditions relating to the origin of the farmyard manure. This is intended to create an additional incentive to use slurry and manure in a biogas plant up to 90%.

To encourage the use of heat, plants feeding into the grid for the first time from 1 January 2023 will receive a new heat bonus.

Adjustment of subsidies for the use of renewable energies

Suspension of tariff reduction

For installations (first injection between 1 January 2024 and 31 December 2024) that generate electricity from renewable energies (except for biogas), the tariffs for injected electricity will be calculated as in 2023.

Cascade use and waste hierarchy 

New facilities (> 1 MW) that generate electricity from solid biomass or used wood must take account of the principle of cascading and the waste hierarchy.

Heat bonus

From 1 January 2025, additional information will be required when applying for the heat bonus.

Market premium threshold

Until now, only new plants with a minimum output of 500 kW and wind power plants with a minimum output of 3 MW (or plants with three production units) have been eligible for the market premium. This threshold will be lowered to 400 kW for all technologies from 2025. This means that small installations will also be eligible for the premium.

Sustainability and greenhouse gas savings

New deadlines and procedures have been set for proving compliance with sustainability standards and greenhouse gas savings.

Adjustment in the event of negative electricity prices 

If electricity prices are negative for a long period, there is too much electricity on the grid and plant operators are not receiving any income for the electricity they produce. Until now, the market premium was deactivated for facilities when electricity prices were negative for six hours. 

This limit will be gradually lowered to one hour by 2027. This means that if electricity prices are already negative for one hour, there is no longer any market premium. To compensate plant operators for the loss of the premium in the event of negative electricity prices, the support period will be extended by the periods during which no premium was paid.

Existing installations connected to the grid before 17 August 2024 and photovoltaic installations that received support under a call for tenders before 31 December 2023 are not affected by this rule.


The information above is for informational purposes only. The text of the Grand-Ducal regulation prevails. For more details, see the full text of the Grand-Ducal regulation.