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IEA urges Luxembourg to push for sustainable energy

Hydrocarbon Engineering,

The International Energy Agency (IEA) has released a report on Luxembourg’s energy policy in which it welcomes the progress the country has made in reinforcing security of energy supply, integrating its gas and electricity markets at the regional level, prioritizing research and development in clean energy and eco-innovation, and taking strong action on energy efficiency.

According to the report, ‘Energy policies of IEA countries – Luxembourg 2014’, greenhouse gas emission in the country have stabilized as energy intensive industries scaled back their activities and energy efficiency policies were put in place.

However, the Luxembourg has also seen an increase in road fuel sales to non-residents that inflate the country’s emissions and its oil-stockholding needs. In this respect, the IEA sees room for building on the existing surcharge imposed on road fuel sales, dubbed the ‘Kyoto cent’.

The IEA additionally encourages the country to implement planned measures aimed at increasing the number of electric vehicles on its roads and encouraging greater use of public transport.

Beyond this, the IEA welcomes the planned roll out of smart meters. The Agency additionally recommends that if coupled with a greater deployment of electric vehicles, this would create synergies between the transport and energy systems and would be the first country-wide system among IEA countries.

Promoting energy security

The IEA outlines that because Luxembourg imports all of its energy needs, energy security is a priority. Luxembourg has sought to address this through regional market integration. As neighboring countries invest in ambitious energy transition policies, regional electricity trade and electricity markets are changing. According to the IEA, Luxembourg is set to increase its interconnections.

For this reason, the IEA holds that it is both a necessity and an opportunity to support competitive electricity markets and increase coordination of system operation, including the pooling of regional reserves and flexibility to meet demand peaks.

Adapted from a press release by Emma McAleavey.

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