Luxembourg is refueling with solar energy
For several years, the country has given pride of place to photovoltaics Since. However, it is not called the most productive renewable energy. So why put on it? Explanations.
Installation of solar cells
For several years, the country has given pride of place to photovoltaics Since. However, it is not called the most productive renewable energy. So why put on it? Explanations.
On Wednesday 11 January, the Ministers of the Economy, Franz Fayot, and of Energy, Claude Turmes, presented at a press conference the first company to produce solar panels “Made in Luxembourg”. It will therefore be Solar cells, a joint venture created by the Luxembourg group Socom and the Belgian solar panel manufacturer, Evocells.
The arrival of this company in Hollerich is a new step in the country’s “solar offensive”. An expression used by the government itself in its Luxembourg National Energy and Climate Plan 2021-2030.
In recent years, it is, in fact, a real “offensive” because the installations of photovoltaic panels are multiplying rapidly in the country. In 2021, according to the Luxembourg Regulatory Institute (ILR), these technologies would comprise almost half of the country’s total electricity production capacity. Against less than 20% six years earlier.
Less productive technology
Please note, however, that this does not mean that most of Luxembourg’s electricity comes from photovoltaic energy. Far from there. The Grand Duchy still imported 81.5% of its electricity consumed in 2021, in particular from German coal-fired power stations.
Thus, when we consider the power actually absorbed in the network, only 15% is emitted by photovoltaics. In comparison, wind power and biomass energy (derived from organic matter) have progressed since 2015.
And this for many reasons. First, because the sun is an intermittent energy. It is not productive at night and is less so in winter than in summer. Also, because part of the electricity is used for self-consumption.
Indeed, when you install solar panels in your home, there are several options. Either, you resell the energy produced thanks to your installation. Everything is then injected into the network. So you use this energy for your home or your community and only sell any excess.
A final reason why photovoltaics seems less productive is that some installations are still recent. The interactive graph above shows an acceleration in the productivity of wind turbines from 2016. Meanwhile, that of photovoltaic panels is increasing less rapidly. It must be said that before 2018, new solar panel installations were growing at less than 5% per year, compared to 48% in 2021.
A wide range of grants
There are several reasons behind this enthusiasm for solar power. But the installation grants, which are very incentivising, have a lot to do with it. State investment aid thus amounts to 20% of the installation cost, combined with a guaranteed injection tariff for fifteen years. Subsidies on self-consumption installations amount to 62.5% (without guarantee of the injection tariff).
Note that it is also possible to obtain aid from the municipalities. For example, Luxembourg-city towards a subsidy equal to 50% of that delivered by the State.
Since 2021, there are no longer any taxes on income from the surplus production of panels with a power of less than 10 kilowatt peak (KWp), the unit of measurement of their maximum power. And, since January 1, the VAT on solar panels has been reduced from 17 to 3%.
Last year, this boost encouraged 843 requests to the Ministry of the Environment. In total, “548 requests were liquidated for an amount of €1,941,563”, specifies the ministry. Since 2017, the influx of requests has also been difficult as it has affected the services responsible for processing the files. Last November, we explain to you that the payment of aid has fallen behind. Out of 3,000 requests received in five years, more than a quarter have not yet been processed.
Photovoltaics, easier to get infected
The other advantage of photovoltaic panels compared to wind or biomass energy is their ease of deployment on the territory. For a biogas plant or a wind farm, it is often necessary to mobilize land. While solar panels are added to the roof of a house, above parkingsor even in the fields. A godsend, since agricultural and urbanized land represents more than half of the country’s surface.
The government is following this same logic. “By 2026, 10% of the annual electricity consumption in public buildings should be covered by their own photovoltaic installations”, underlined Xavier Bettel, in his state of the nation addresson October 11, 2022. For the moment only 62 buildings are actually.
A relocation strategy
Finally, for Luxembourg, this is an economic objective. Attracting companies such as Solarcells makes it possible to reduce dependence on Asian countries, the world leader in the manufacture of photovoltaic panels. In addition, the installation of renewable technologies makes it possible to reduce the heavy share of imports in the Luxembourg energy mix.
But using solar energy is also part of the more global development of the green economy in Luxembourg. This strategy also seems to be bearing its first fruits, thanks to the good results of the sector last year. During Wednesday’s press conference, the Ministry of the Economy hinted that fifteen other investors in the green economy would be in discussion to settle in Luxembourg.
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