Working together to ensure reliable, affordable and clean energy
Member_Countries Luxembourg

Luxembourg

‌Luxembourg is a founding member of the IEA.

In-depth country review
 

Energy Policies of Luxembourg 2014Luxembourg 2014 Review launched 16th July 2014 is available for purchase at the IEA bookshop. See also Executive Summary and Table of Contents.

The 2008 review is available for free download.

Luxembourg has reformed its energy policies across all sectors since the last 
IEA in-depth review in 2004. The country has fully liberalised its electricity and natural gas markets, and is actively participating in the development of the evolving Central West European regional electricity system. Luxembourg has also prepared a broad action plan on energy efficiency, improved the support system for renewable energy sources and revised taxes to mitigate climate change.

The country’s energy policy in the coming decade will be shaped by the EU 2020 targets that call for substantial reductions in greenhouse gas emissions, and strong increases in renewable energy and energy efficiency. These targets will be hard to meet, given that roughly half of energyrelated CO2 emissions come from transport fuel use by foreign truckers and motorists, and that Luxembourg’s potential for producing much more renewable energy is limited.

Luxembourg is heavily dependent on oil. Although oil sources are well diversified by country of origin, more than 85% of oil stocks are held in neighbouring countries and often based on short-term leasing contracts. This leaves the country vulnerable to potential oil supply disruptions. Luxembourg should swiftly implement a plan to improve the security of oil supply.

This review analyses the energy challenges facing Luxembourg and provides critiques and recommendations for further policy improvements.  It is intended to help guide the country towards achieving its sustainability targets.