Renewable energies: compensation

Remuneration for electricity produced by renewable sources is guaranteed by compensation in accordance with the Grand Ducal Regulation of 1 August 2014 and the Grand Ducal Regulation of 12 April 2019.

Different techniques enable electricity and/or heat to be produced from renewable sources. Each case is entitled to tariffs defined in the legislation.

There are two types of remuneration: market premiums and buy-back compensation. In the case of remuneration by market premium, the electricity is sold on the open market, which is also possible via an intermediary, and the premium is paid directly by the grid operator. In the case of the buy-back compensation, the latter is paid directly by the operator. 

Remuneration based on the market premium principle applies to a rated electrical output of 400 kW or more, also in accordance with the conditions defined by the statutory regulations.

In the case of the buy-back compensation, the latter is paid directly by the operator.

1. Wind power

Wind power plants are eligible for a market premium, whereby the reference remuneration is defined in the Grand Ducal Regulation of 1 August 2014 on electricity generation from renewable energy sources.

Compensation92 × (1-(n-2014) × 0.25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

2. Photovoltaics

Benefit now from attractive remunerations for the electricity you produce and feed back into the electricity grid! The new compensation is valid for 15 years from the initial feed-in. 

Find all the compensations

Installations with a nominal capacity of more than 200 kW can benefit from a market premium in the context of calls for tender.

3. Hydroelectric power

Compensations available for hydroelectric power generation

Power classCompensation
nominal electrical power ≤ 300 kW180 × (1-(n-2014) × 0.25/100) €/MWh
300 kW < nominal electrical power ≤ 1 MW150 × (1-(n-2014) × 0.25/100) €/MWh
1 MW < nominal electrical power ≤ 6 MW125 × (1-(n-2014) × 0.25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

4. Biogas

Compensations available for electricity production from biogas

Power classCompensation
≤ 100kW265 (1-(n-2023) × 0,25/100) €/MWh
> 100kW to ≤ 200kW208 (1-(n-2023) × 0,25/100) €/MWh
> 200kW to ≤ 500kW188 (1-(n-2023) × 0,25/100) €/MWh
> 500kW to ≤ 2500kW162 (1-(n-2023) × 0,25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

An additional heat premium of up to €50/MWh of marketed heat, as well as a manure premium of up to €60/MWh can be granted, in accordance with the conditions defined by the regulations.

Remuneration based on the market premium principle applies to a rated electrical output of 400 kW or more, also in accordance with the conditions defined by the statutory regulations.
 

5. Gases from sewage treatment plants

Installations that have received aid under Art. 65 of the amended Law of 19 December 2008 on water65 × (1-(n-2014) × 0.25/100) €/MWh
Other installations120 × (1-(n-2014) × 0.25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.

6. Solid biomass

Compensations available for solid biomass

Power classCompensation
nominal electrical power ≤ 1 MW163 × (1-(n-2014) × 0.25/100) €/MWh
1 MW < nominal electrical power ≤ 10 MW143 × (1-(n-2014) × 0.25/100) €/MWh
nominal electrical power > 10 MW 90 × (1-(n-2019) × 0.25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.
 

7. Waste wood

Compensations available for waste wood

Power classCompensation
nominal electrical power ≤ 1 MW95 × (1-(n-2022) × 0,25/100) €/MWh
1 MW < nominal electrical power ≤ 10 MW85 × (1-(n-2022) × 0,25/100) €/MWh
nominal electrical power > 10 MW 80 × (1-(n-2019) × 0.25/100) €/MWh

Where: n = calendar year of start of electricity feed-in

An additional heat premium of up to EUR 30 per MWh of marketed heat can be granted, in accordance with the conditions defined by the regulations.

8. High efficiency cogeneration

The electrical energy fed into the grid by the cogeneration plant shall be remunerated in accordance with the Grand Ducal Regulation of 26 December 2012 on the generation of electricity based on high-efficiency cogeneration.

9. Feeding biogas into the natural gas network

Compensations available for the introduction of biogas into the natural gas network

ConditionsCompensation (GCV)
First feed-in took place before 1 January 201265 €/MWh until 31 dec. 2014
90 €/MWh from 1 jan. 2015
First feed-in took place before 1 January 201462,5 €/MWh until 31 dec. 2014
87,5 €/MWh from 1 jan. 2015
First feed-in took place after 1 January 2014 and before 1 January 202380 €/MWh
First feed-in took place on or after 1 January 2023 with a maximum treatment capacity of 150 Nm3 or less133 €/MWh
First feed-in took place on or after 1 January 2023 and with a maximum treatment capacity greater than 150 Nm390 €/MWh
Fifteen-year period has expired70 €/MWh

The kWh corresponding to the gross calorific value (GCV) of the biogas fed in.

The legislation defines the compensations and regulates the marketing of biogas. Biogas producers must be registered with the ILR and comply with the regulations of this Institution.

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