The European Commission has approved Luxembourg’s €500 million state aid scheme to support investments in cleantech manufacturing
The scheme will fund production of key technologies and components, including solar, wind, heat pumps, and batteries
Support will be provided as direct grants to companies based in Luxembourg and will remain available until December 31, 2030
Luxembourg has received the European Commission’s approval for its €500 million state aid scheme, aimed at supporting investments in clean technology manufacturing.
The initiative is designed to expand manufacturing capacity for cleantech products and their key components, including solar power, wind energy, heat pumps, and batteries, which are considered critical for Europe’s energy transition.
Support will be available in the form of direct grants to all companies based in Luxembourg, to be granted till December 31, 2030.
Approved under the Clean Industrial Deal State Aid Framework (CISAF), the scheme will accelerate the country’s transition towards a net-zero economy, stated the commission. It found the scheme ‘necessary, appropriate and proportionate’ to support the implementation of the Clean Industrial Deal.
“This is the first CISAF scheme approved for a small Member State. A budget of €500 million is available for additional cleantech manufacturing capacity in Luxembourg,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. “The direct grants under this scheme will help companies make key investments in the coming years.”
In 2024, Solarcells started producing the ‘first’ Made in Luxembourg solar panels in the country, with an initial capacity of 40,000 solar panels a year. According to the Luxembourg Wort, the company planned to roll out up to 200,000 panels annually as part of a joint venture between Socom Group and Evocells (see Plans For Small Solar Module Factory In Luxembourg).
Earlier this year, the EU also approved a €400 million support scheme to back clean technology manufacturing in Greece under CISAF, and another €3 billion for Germany (see EU Approves Greece’s €400 Million Scheme For Cleantech Manufacturing).
Alongside, the commission is also working towards creating demand for EU-made solar inverters and cells as part of the draft Industrial Accelerator Act (see Draft Industrial Accelerator Act: Prioritize Made-In-EU Solar Inverters & Cells).