Luxembourg Launches New Call for Tenders for Solar Power Plants

Luxembourg's Ministry of Energy and Spatial Planning has launched a fourth call for tenders for large photovoltaic power plants.

This new call for tenders forms part of efforts to further stimulate the development of solar energy in the Grand Duchy. It is accompanied by an increase in the tax exemption threshold for small solar installations, going from 4 kWp to 10 kWp of installed power.

Luxembourg's Minister for Energy Claude Turmes noted: "By allowing more players, whether individuals installing small photovoltaic plants or players with large surfaces, to benefit from advantageous conditions, we hope to further convince more players that photovoltaic energy is not only beneficial for the climate, but also a profitable and lucrative investment”.

Tax exemption for small photovoltaic systems

Income from the sale of electricity produced by a photovoltaic installation will now be retroactively exempt from tax from 1 January 2021, if the total power of the installation does not exceed 10 kWp. This is up from 4 kWp under the old regime.

Luxembourg's Minister of Finance Pierre Gramegna praised this decision, stating: "Thanks to fiscal flexibility, more players can benefit from photovoltaic energy produced in Luxembourg".

Fourth call for tenders for large photovoltaic power plants

The Energy Ministry has just launched a fourth call for tenders for photovoltaic power plants for a total volume of 55 MW, which is equivalent to the production of green and renewable electricity for about 35,000 residents. Successful applicants will receive a market premium contract for the injection of the electricity produced for a period of fifteen years. The deadline for the submission of tenders is 15 February 2022.

The detailed terms of the call for tenders are described in a specification, which is availbale upon request via email: pv@energie.etat.lu.

In 2020, the installed capacity of solar energy in Luxembourg reached a new record of 187 MW, covering the electricity needs of around 120,000 people. A total of 609 photovoltaic installations were commissioned in 2020.

Energy Minister Claude Turmes concluded: “Solar energy plays a central role in the energy transition in Luxembourg. It helps Luxembourg to achieve its renewable energy objectives of 25% and a reduction of its greenhouse gas emissions by 55% by 2030 compared to the 2005 reference year".