Luxembourg Launches New Calls for Photovoltaic Projects with Innovative Categories

To support the development of photovoltaics in Luxembourg and increase the proportion of electricity produced using solar energy, Luxembourg’s Ministry of the Economy has announced it is launching two new calls for projects to motivate companies to set up and operate large-scale photovoltaic power plants.

Two major new features were highlighted in the context of these calls.

Firstly, two project calls are being launched simultaneously. Building on the success of the 2022 and 2023 initiatives, a third call for investment aid for constructing and operating photovoltaic power plants is being launched, the ministry noted. In parallel, a sixth call for operating aid projects is also being initiated. Investment aid encourages companies to produce their own energy by providing a subsidy, paid when the photovoltaic plant starts operating. Operating aid, on the other hand, allows companies to enter into a market premium contract for fifteen years, during which they will be paid based on the electricity produced and injected into the network.

Interested companies have the choice between the two types of aid and are free to assess the best option according to their needs and expectations, and their specific situation, in particular concerning their electricity consumption and the areas they have available to install photovoltaic panels.

Secondly, both calls for projects include a category designated as "innovative," aimed at plants that are not considered "conventional." This category targets two types of power plants: photovoltaic power plants installed on building facades and those using "light" modules on roofs. These light modules weigh less than 5 kg/m², compared to the typical weight of 15 to 20 kg/m², which helps address potential structural concerns of buildings. The higher costs associated with these two types of photovoltaic power plants are recognised in the "innovative" category.

Similarly, specific categories for carports and parking canopies are being maintained. This photovoltaic technology allows large areas to serve dual purposes: as parking spaces and as electricity production sites. It also provides user comfort and supports the installation of electric car charging stations powered directly by solar energy, the ministry stressed.

The third call for projects to obtain investment aid has a total budget of €23 million, divided into five lots. Lot 1 covers photovoltaic installations on industrial land with capacities greater than 30 kWp and up to 200 kWp. Lot 2 targets building roofs with capacities greater than 200 kWp and up to 500 kWp, while Lot 3 focuses on building roofs with capacities greater than 500 kWp. Lot 4 is designated as "innovative," including photovoltaic systems with lightweight modules on building roofs and façades, divided into three sub-lots: Sub-lot 4a for capacities greater than 30 kWp and up to 200 kWp, with sub-lot 4b for capacities greater than 200 kWp and up to 500 kWp and sub-lot 4c for capacities greater than 500 kWp.

Lot 5 is for shades and water basins with capacities greater than 30 kWp.

Additionally, the call for projects to obtain operating aid proposes a total power of 50 MW to be allocated, divided into five lots. Lot 1 is for industrial land with capacities greater than 500 kWp and up to 20 MW. Lot 2 targets building roofs with capacities greater than 200 kWp and up to 500 kWp, while Lot 3 focuses on building roofs with capacities greater than 500 kWp and up to 5 MW. Lot 4, designated as "innovative," includes photovoltaic systems on building roofs with lightweight modules and modules on façades, divided into two sub-lots: Sub-lot 4a for capacities greater than 200 kWp and up to 500 kWp, and Sub-lot 4b for capacities greater than 500 kWp and up to 3 MW. Finally, Lot 5 covers shades and water basins with capacities greater than 30 kWp and up to 3 MW.

Luxembourg’s Minister of the Economy, SME, Energy and Tourism, Lex Delles, commented: "The development of renewable energies is one of the government's priorities and photovoltaics is increasingly important in this context. With the simultaneous launch of these two new calls for projects, companies have more flexibility to choose the aid that suits them best to install electricity production plants using photovoltaic solar energy. This is intended to encourage as many players as possible to actively participate in the energy transition.”

To submit a project for aid, companies have deadlines of 31 October 2024 for investment aid and 29 November 2024 for operating aid.

All relevant information can be found online via the following links regarding investment aid (https://guichet.public.lu/en/entreprises/financement-aides/aides-environnement/appel-projets-photovoltaique/appel-photovoltaique-aides-investissements.html) and operating aid (https://guichet.public.lu/en/entreprises/financement-aides/energie/production-energie/production-electricite-energies-renouvelables.html).

Free information webinars will be held with the support of the national innovation agency, Luxinnovation, aiming to help companies understand the details and practical arrangements of these calls for projects. The English-language webinar is scheduled for 19 September and will cover the new features and changes in the calls for projects, allowing participants to address any questions they have about the two types of aid.