Energy Policies of IEA Countries: Luxembourg 2008
The Inernational Energy Agency's periodic review of Luxembourg's energy policies and
programmes. It analyses the energy challenges facing Luxembourg and provides critiques
and recommendations for further policy improvements.
Since the last review in 2004, Luxembourg has reformed its energy policies across
all sectors, 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
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 energy-related 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.
Published on March 20, 2009
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