Premium tariff (Prime de marché)

Updated: 19.02.2019

Author: Stijn Anciaux

In case of the direct sale of electricity produced from renewable energy sources, plant operators receive a variable bonus on top of the market price (Art. 27bis. RGD du 23 juillet 2016).

Eligible technologies

All renewable electricity generation technologies except for geothermal energy are eligible (Art. 16-23 RGD du 1 août 2014).

Wind energy

Eligible (Art. 16 RGD du 1 août 2014).

Solar energy

Eligible under the following condition:

  • PV installations shall have a capacity of less than 30 kW (Art. 17 RGD du 1 août 2014).

Biogas

Eligible under the following condition:

  • Plants shall have a nominal capacity of less than 2,500 kW (Art. 19 RGD du 1 août 2014).

Hydro-power

Eligible under the following condition

  • Plants shall have a nominal capacity of less than 6 MW (Art. 18 RGD du 1 août 2014).

Biomass

Eligible under the following condition:

  • Plants shall have a nominal capacity of less than 10 MW (Art. 22 RGD du 1 août 2014).

Amount

The amount of market premium (PM) results from the sum of the direct sales premium (PVD) and the difference between a technology-specific reference remuneration (PRR) and the monthly market price (PMM): PM = PRR – PMM + PVD (Art. 27ter. RGD du 23 juillet 2016)

Wind energy

For Electricity sold directly and produced from wind power plants, the monthly market price shall be the “MW Wind an Land” value, which corresponds to the average market price of electricity produced from wind power on the spot market of the EPEX Spot SE electricity exchange in Paris for the price zone Germany/Austria (Art. 27ter. RGD du 23 juillet 2016).

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from wind power plants is€ 90.9 per MWh (Art. 16 RGD du 1 août 2014). 

Solar energy

For Electricity sold directly and produced from solar power plants, the monthly market price shall be the “MW Solar” value, which corresponds to the average market price of electricity produced fromsolar power on the spot market of the EPEX Spot SE electricity exchange in Paris for the price zone Germany/Austria (Art. 27ter. RGD du 23 juillet 2016).

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from biogas plants depends on the capacity of the plant and amounts to (Art. 17 RGD du 1 août 2014 and Art. 17bis. RGD du 23 juillet 2016):

  • € 121 per MWh for plants with a nominal electric capacity of ≤ 30 kW 
  • € 131.2 per MWh for plants with a nominal electric capacity of > 30 kW and ≤ 100 kW 
  • € 125.5 per MWh for plants with a nominal electric capacity of > 100 kW and ≤ 200 kW

Biogas

For Electricity sold directly and produced from biogas plants, the monthly market price shall be the “MW Epex” value, which represents the average value of the hourly contracts concluded on the spot market of the EPEX Spot SE electricity exchange in Paris for the Germany/Austria price zone for each hour of the calendar month (Art. 27ter. RGD du 23 juillet 2016).

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from biogas plants depends on the capacity of the plant and amounts to (Art. 19 RGD du 1 août 2014): 

  • €190 per MWh for plants with a nominal electric capacity of ≤ 150 kW 
  • €179 per MWh for plants with a nomial electric capacity of > 150 kW and ≤ 300 kW 
  • €169.1 per MWh for plants with a nominal electric capacity of > 300 kW and ≤ 500 kW 
  • €151.1 per MWh for plants with a nominal electric capacity of > 500 kW and ≤ 2,500 kW

Hydro-power

For Electricity sold directly and produced from hydroelectric power plants, the monthly market price shall be the “MW Epex” value, which represents the average value of the hourly contracts concluded on the spot market of the EPEX Spot SE electricity exchange in Paris for the Germany/Austria price zone for each hour of the calendar month (Art. 27ter. RGD du 23 juillet 2016).

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from hydroelectric power plants depends on the capacity of the plant and amounts to (Art. 18 RGD du 1 août 2014): 

  • €178 per MWh for plants with a nominal electric capacity of ≤ 300 kW 
  • €148.3 per MWh for plants with a nominal electric capacity of > 300 kW and ≤ 1 MW 
  • €123.5 per MWh for plants with a nominal electric capacity of > 1 MW and ≤ 6 MW

Biomass

For electricity sold directly and produced from biomass plants, the monthly market price shall be the “MW Epex” value, which represents the average value of the hourly contracts concluded on the spot market of the EPEX Spot SE electricity exchange in Paris for the Germany/Austria price zone for each hour of the calendar month (Art. 27ter. RGD du 23 juillet 2016).

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from solid biogas plants depends on the capacity of the plant and amounts to (Art. 22 RGD du 1 août 2014): 

  • €161.2 per MWh for plants with a nominal electric capacity of ≤ 1 MW 
  • €141.4 per MWh for plants with a nominal electric capacity of > 1 MW and ≤ 10 MW

For 2019, the technology-specific reference remuneration (PRR) for electricity generated from wood waste biogas plants depends on the capacity of the plant and amounts to (Art. 23 RGD du 1 août 2014): 

  • €136.4 per MWh for plants with a nominal electric capacity of ≤ 1 MW 
  • €116.6 per MWh for plants with a nominal electric capacity of > 1 MW and ≤ 10 MW

Addressees

The persons eligible are the operators of renewable energy plants (Art. 4 (5) RGD du 1 août 2014).

The person obligated is the grid operator (Art. 4 (5) RGD du 1 août 2014).

Procedure

Process flow

The energy producer and the system operator shall conclude between themselves in accordance with the provisions of this Grand-Ducal Regulation a market premium contract also governing the terms and conditions of the use of the network. These contracts must be drawn up on the basis of standard contracts of the grid operator concerned.

These standard contracts must comply with the provisions of RGD du 23 juillet 2016 and the general conditions of use of the grid and must be approved by the regulator prior to the conclusion of the contracts between the energy producers and the grid operator concerned.

The grid operator who has concluded the market premium contract with the producer of electricity shall forthwithimmediately forward a copy thereof to the regulator. Grid operators shall establish and keep up to date a list of the repurchase agreements and concluded market contracts, giving information on renewable energy sources, the total number of power stations connected and their installed capacity. The list also contains the total number of connection requests (depending on the renewable energy sources) addressed to the relevant grid operator. This list is communicated biannually during the months of January and July to the regulator. This communication may be in electronic form (Art. 4 RGD du 1 août 2014).

Degression

The tariff for new plants depends on the source of energy and the year of commissioning and decreases according to a percentage set by law (Art. 16-23, RGD du 1 août 2014). The tariff in force in the year of commissioning applies to the RES installation during its entire eligibility period.

Eligibility period

The tariff is guaranteed for a period of 15 years, starting on the day of the first electricity export (Art. 27bis. RGD du 23 juillet 2016).

Luxembourg

Further information

  • Ministère de l’Economie, Département des petites et moyennes enterprises (PME) et entrepreneuriat - Ministry of Economics, Department of Small and Medium Enterprises and Entrepreneurship
  • +352 247 84 71 5
  • website
  • info.pme(at)eco.etat.lu

Basic information on legal sources