Policy status:Superseded
Date Effective:1994
Date Ended:2005
Policy Type:Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Energy Utilities>CHP
Agency:Ministry of the Economy
Legal References:Règlement grand-ducal modifié du 30 mai 1994 concernant la production dénergie électrique basée sur la cogénération

Under the Framework Law of 1993, the Ministry of Energy supported the production of electricity from renewables by bonuses defined in this regulation, mainly for co-generation systems, wind power and PV.

Under this law, the feed-in tariffs for electricity produced by renewables are implemented by the Grand Ducal regulation of 30 May 1994. There are two classes of feed-in tariffs for producers, depending on their size and technology:



Renewable technology

Power plant capacity

Feed-in tariff rate in EUR/kWh day tariff

Feed-in tariff rate in EUR/kWh night tariff

Class 1

Wind, biomass and solar PV

< 500 kW



< 150 kW

Class 2



150 – 500 kW

Wind, biomass and solar PV

501 – 1500 kW




Tariff levels are indexed to cost-of-living indices

Additionally, bonus for wind and solar PV power exist.

On top of the feed-in tariff and bonuses, an average peak load delivered during the three principal annual peak load periods leads to an extra bonus.

The law also provides for subsidies for entities that invest in renewable energy technologies, including solar, wind, biomass and geothermal technologies.

The law further provides for tax exemptions for biofuel for transport and investment subsidies for CHP, the installation of heat pumps and solar thermal systems.


This law was amended in 2005.

Related policies:Framework Law concerning rational use of energy: Law of 5 August 1993 , Act establishing premium for electricity generated from wind, hydro, solar, biomass and biogas
This record is superseded by:Feed-in tariffs for renewable energy and cogeneration (Règlement du 14 october 2005)

Last modified: Tue, 20 May 2014 15:18:01 CEST