In 2021, Luxembourg’s economy was ranked 76th in the world in gross domestic product (GDP). The country’s economy is dependent on the export of iron blocks, cars, rubber tires, gas turbines, and iron sheet piling.
In 2009, Luxembourg as a member of the European Union (EU) committed to the “Renewable Energy Directive,” which requires each country to use renewable energy for 27% of its total energy needs by 2030.
In 2016, Luxemburg as a member of the EU signed the Paris Climate Agreement. The EU committed to a 40% reduction in greenhouse gas emission by 2030 compared to 1990 levels.
In December 2021, the government of Luxembourg adopted the goal of reducing greenhouse gas emissions by 50% to 55% by 2030, compared to 2005 levels. The government also set the goal of generating 100% of the nation’s electricity from renewable energy by 2050.
Power Generation Capabilities
In 2021, 100% of the people in Luxembourg had access to electricity. In 2022, the state-owned electric utility, Creos Luxembourg S.A. used renewable energy (85.8%), natural gas (8.0%), and oil (6.2 %) to generate electricity in the country. Biomass, wind, and solar are the dominant types of renewable energy used to generate electricity in Luxemburg.
Recent renewable energy projects in Luxemburg include:
- 43 MW Solar Projects – In June 2023, the government of Luxembourg selected 75 solar projects to be developed across the country. The solar projects have a total capacity of 3 MW. All 75 solar projects will be completed by year end 2023.
- 23 MW Wind Project – In February 2020, American engineering firm, Bechtel commissioned the Wincrange wind project, which is located approximately 35 miles north-northwest of the nation’s capital, Luxembourg City.
- 10 MW Floating Solar Project – In November 2021, German renewable energy companyEnovos commissioned Luxembourg’s first floating solar project at a site approximately 8 miles southwest of Luxemburg City.
Luxemburg imports all fossil fuels (coal, oil, and natural gas) for power generation, heating, and transportation. In 2021, Luxembourg imported U.S. $4.2 Billion for Russian refined petroleum and crude oil.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
Luxemburg has significant undeveloped renewable energy resources, including hydropower, solar, wind, and biomass. The country’s undeveloped renewable energy resources could easily replace the electricity generated from the current fossil fueled power plants.
Volatile fossil fuel prices have caused Luxemburg to increase the pace of development of new renewable energy projects. European Union embargos on Russian exports and volatile fossil fuel prices have prompted Luxembourg to fast-track new green energy projects.
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.