On Wednesday 8 February 2023, the Chamber of Deputies adopted a bill ratifying the treaty between the Grand Duchy of Luxembourg and the Kingdom of Denmark on statistical transfers of energy from renewable sources in order to meet the targets set out in Directive (EU) 2018/2001.
Through this cumulative agreement, ranging from €33.12 million to €66.24 million (depending on Luxembourg's annual needs for renewable energy statistics) over the period 2021 to 2025, the money transferred to Denmark will be invested in new renewable energy projects, such as the financing of the planned energy islands in the North Sea, but also other renewable energy projects such as the development of offshore wind turbines or green hydrogen.
This agreement follows the signature on 10 June of a Memorandum of Understanding on cooperation in the field of renewable energy between Claude Turmes, Luxembourg's Minister for Energy, and Dan Jørgensen, Denmark's Minister for Climate, Energy and Supply. Since then, discussions on a regular basis have taken place to make the planned cooperation between the two countries a reality.
A statistical data transfer mechanism to complement the national strategy for accelerating the development of renewable energy
The EU Renewable Energy Directive (RED) allows Member States to enter into statistical transfer agreements, a mechanism that allows certain amounts of renewable energy to be transferred from one country to another for the purposes of national renewable energy targets. The mechanism does not involve the physical transfer of energy, only the transfer of statistical data.
Green energy produced in Denmark - a country with a high potential for renewable energy, which has allowed it to exceed its national target - is therefore counted in Luxembourg - a country which, due to its size and the fact that it is landlocked, has limited potential for developing renewable energy on its territory.
Claude Turmes, Minister for Energy, is delighted: "I am pleased that Luxembourg, as a landlocked country, can contribute financially to accelerate the development of renewable energy in the North Sea. This cooperation with Denmark is intended to complement the national strategy for implementing renewable energy projects in the country.
Press release by the Ministry of Energy and Spatial Planning