Luxembourg has introduced new measures to encourage the usage of PV power onsite. The new plans will allow private PV generators or communities with PV systems to consume part of the electricity they produce themselves. Excess power will be sold to the grid.
If consumed onsite, either individually or collectively, the power will be exempt from the electricity tax, announced Luxembourg's Deputy Prime Minister and Economy Minister Étienne Schneider. Until now, Luxembourg had a traditional premium feed-in tariff model with owners of PV panels selling all of the power generated to the grid operator. In return, they were getting paid more than the electricity they were buying for their own consumption was costing.
500 kW tender
In other news, Luxembourg launched a rooftop solar PV tender for a minimum of 500 kW in February. Both companies and individuals are eligible to participate in the tender. The bid with the best price will be selected and the system would need to be installed within 18 months of selection. The last date to submit bids is Aug. 31, 2018.
The small European country is aiming to have an 11% share of renewable energies by 2020. In October 2017, Luxembourg signed a renewable energy supply agreement with Lithuania to buy a minimum of 700 GWh between 2018 and 2020 to be able to fulfil its 2020 EU renewable energy target.
This was recorded as the first ever agreement relating to the statistical transfer of renewable energy as stipulated in the European Commission's Renewable Energy Directive. Lithuania had a 23% renewable energy target in its total energy mix by 2020, but it already reached 25.75% in 2015. Luxembourg, on the other hand, only achieved 5% of its targeted 11%