On Wednesday 8 February 2023, the Chamber of Deputies (Luxembourg's parliament) adopted a bill ratifying the treaty between Luxembourg and Denmark on the statistical transfers of energy produced from renewable sources in order to meet the objectives set out in Directive (EU) 2018/2001.
Through this cumulative agreement ranging from €33.12 to €66.24 million (depending on the annual needs in Luxembourg for renewable energy statistics) from 2021 to 2025, the sums transferred to Denmark will be invested in new projects. in the field of renewable energies, for example the financing of the energy islands planned in the North Sea, but also other renewable energy projects such as the development of wind turbines at sea or green hydrogen.
This agreement follows the signing of a memorandum of understanding (MoU) concerning cooperation in the field of renewable energies between Luxembourg's Minister of Energy, Claude Turmes, and Denmark's Minister for Climate, Energy and Utilities, Dan Jørgensen, on 10 June 2021. Since then, regular discussions have taken place in order to be able to concretise the collaboration envisaged between the two countries.
The European Union's (EU) Renewable Energy Directive allows Member States to enter into statistical transfer agreements, a mechanism that allows certain volumes of renewable energy to be transferred from one country to another for the purposes of national renewable energy targets. The mechanism does not provide for the physical transfer of energy, only the transfer of statistical data, according to Luxembourg's Ministry of Energy and Spatial Planning.
The green energy produced in Denmark (a country with a high renewable energy potential) will therefore be counted in Luxembourg (a country which, as a small landlocked country, has limited potential to develop renewable energies on its soil).
Luxembourg's Energy Minister Claude Turmes commented: "I am happy that Luxembourg, as a landlocked country, can contribute financially to accelerating the development of renewable energies in the North Sea. This cooperation with Denmark is intended to be complementary to the national strategy which aims to carry out renewable energy projects on the national territory".