Act on production, remuneration and commercialisation of biogas introducing feed-in tariff (Règlement du 15 décembre 2011)

The Act was adopted on 15^th December 2011 and entered into force on 18th December 2011. The Act establishes legal framework for promotion, development, production and remuneration of biogas that feeds into the natural gas network in Luxembourg.

In order to support biogas production, the Act establishes feed-in tariff system.

Biogas producers that feed biogas into the national natural gas network are eligible to benefit from the feed-in tariff scheme under certain conditions:

• Biogas plant had to be commissioned no earlier than on 1^st January 2010;
• Producer must register for the programme;
• Producer is obliged to document that methane emissions associated with biogas production do not exceed outlined levels.

 

The biogas producers leave the biogas to the primary suppliers designed by public call for tender. The Government pays the producers according to the regulated feed-in tariffs.  The feed-in tariff levels differ depending on the period of time when plant injected biogas to the natural gas network for the first time and depending on who is the owner of the plant. If the plant belongs to the producer with a large public participation (50% or more of the ownership), the feed-in tariff rate is lowered by 10% in comparison to the rates for which private operators are eligible for.

The suppliers sells the biogas according to market rules and pay to the Government royalties equivalent to the market price of the sold quantity of biogas. The regulated tariff is due for 15 years.The total quantity of biogas is limited to 10 millions of m3.

 

The feed-in tariff levels are as follow:

Date of first biogas injection to the natural gas network	Period of time	Feed-in tariff levels in EUR cents/kWh[1]		Yearly cap
		Private producer	Producer with public participation
Before 1 January 2012	15 years	6.5	5.85	10 million m3 of biogas fed into the network
Between 1 January 2012 and 31 December 2013		6.25	5.625
Between 1 January 2014 and before 1 January 2017		6	5.4

[1] Where kWh corresponds to the gross calorific value of biogas injected to the network.

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