Luxembourg Energy efficiency report
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1 Luxembourg Energy efficiency report Objectives: 1.6 TWh of end-use energy savings, or about 9%, by 216 Overview - (% / year) Primary intensity (EU=1) % -- CO 2 intensity (EU=1) % -- CO 2 emissions per capita (in tco 2 / cap) Power generation - (% / year) Efficiency of thermal power plants (in %) % ++ Rate of electricity T&D losses (in %) CO 2 emissions per kwh generated (in gco 2 / kwh) % -- Industry * -* (% / year) Energy intensity (EU=1) % - Share of industrial CHP in industry consumption (in %) % + Energy intensity (EU=1) % -- * and - for steel ++ Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances Latest update: January The European Union, as the best-performing region, is used as the benchmark. 1 Luxembourg Country reports
2 1. Overview 1.1. Policies: 9% energy savings target for -216 Luxembourg has adopted a National Energy Efficiency Action Plan -216 (NEEAP), which sets an energy savings target of at least 9 percent between and 216, ie, 1,582 GWh (136 ktoe), to be achieved in buildings, transport and small industries (excluding sectors under ETS). The former plan, called the National Sustainable Development Plan, set a 2 percent energy intensity reduction target for 21 (compared with levels) Energy consumption trends: growing role of oil and gas in primary consumption Luxembourg produces steel, which strongly influences its consumption profile. As a result, the country s overall consumption per capita reaches 7.9 toe, compared with the EU average of 3.3 toe in. Between and the country s overall consumption increased by almost 5 percent/year, whereas from to that trend was reversed, with overall consumption falling by 1.6 percent/year. Since, overall consumption has been decreasing by an average of 3 percent/year. Figure 1: Total and final energy consumption trends Mtoe Primary consumption Final consumption Transport accounts for 56 percent of final consumption. In the share of industry (including non-energy uses) fell to 24 percent of overall final consumption, due to the structural changes in the iron and steel industries. The household-service sector accounts for the remaining 2 percent. Figure 2: Distribution of final energy consumption by sector Oil has an increasing share in the country s energy needs, with 6 percent of total energy consumption in (45 percent in ). The use of natural gas has soared since ; it accounted for 28 percent of the total in (13 percent in ). The share of electricity has decreased since, from 15 percent to below 1 percent in. For a long time coal, which is exclusively used in the iron and steel industry, played an important role; however, it has declined sharply since, mainly due to the increased use of electricity in the process. In it accounted for 2 percent of the country s consumption, compared with 33 percent in. The consumption of biomass has developed rapidly since and in it accounted for 3 percent of energy consumption Households -Services -Agriculture Transport Industry (including non energy use) Compared with other EU countries Luxembourg s electricity consumption per capita is very high, at about 12,3 kwh in compared with the EU average of 5,6 kwh. The share of electricity in the country s final energy consumption grew from 16 percent in to 2 percent in. Electricity consumption increased by 3 percent/year between and. It fell by 2 percent in and by a further 7 percent in. Industry, which is the main consuming sector (about 65 percent), saw its electricity consumption drop by 12 percent in. Country reports Luxembourg 2
3 Luxembourg Energy efficiency report Figure 3: Electricity consumption trends by sector Figure 4: Energy and CO 2 intensity trends Industry Others -.5% 5-1. TWh 4 3 %/year -1.5% % -3. Primary energy intensity Final energy intensity CO 2 intensity -3.5% 1.3. Energy efficiency and CO 2 trends: large reduction in primary intensity since Total energy consumption per unit of GDP (primary energy intensity), measured at purchasing power parity, is 3 percent lower than the EU average. Over the period - it also decreased at a slower pace than in the region (3 percent/year compared with the EU average of 1.7 percent/year). Final energy consumption per unit of GDP (final intensity) decreased at a similar pace as primary energy intensity between and. However, it decreased almost twice as fast as primary intensity between and. That trend is closely linked to the decrease in conversion losses in power generation achieved over the period. CO 2 emissions per unit of GDP (CO 2 intensity) fell by 2.8 percent/year between and, ie, slightly slower than primary intensity. Over the more recent period (-), CO 2 intensity decreased at a slower pace than primary intensity:.2 percent/year compared with.7 percent/year for primary intensity. 2. Power generation 2.1. Policies: feed-in tariffs for renewables and CHP production The target for 22 is to increase the share of renewables in final energy consumption to 11 percent, in accordance with the EU Directive on the promotion of the use of energy from renewable sources. In Luxembourg implemented feed-in tariffs for electricity generation from renewables and combined heat and power (CHP) production. Those feed-in tariffs were revised in and are applicable to installations built after. The feed-in tariffs also vary according to the size and the year of connection of the installations Power generation trends by source: fast-growing role of natural gas Electricity production increased threefold between and following the commissioning of the TGV power plant. The role of natural gas in electricity production has soared since, making it the largest energy source for power generation. In, it represented three quarters of the total production and the entire thermal production. The use of coal, which accounted for 35 percent in, ended in. About 25 percent of electricity is generated from CO 2 -free energy sources. The share of hydropower declined from 6 percent in (and 13 percent in ) to 2 percent of the electricity output in. Biomass and wind energy account for 3 percent and 2 percent of total power generation, respectively. 3 Luxembourg Country reports
4 Figure 5: Power generation by source Figure 7: Thermal electricity capacity, by technology TWh Other* Wind Hydro Gas Oil Coal- Lignite GW Steam Gas turbines Combined cycles *Including biomass, geothermal and solar 2.3. Efficiency of the power sector: large improvements in the efficiency of thermal generation The efficiency of power generation has decreased from 7 percent in to about 55 percent in, and has remained stable at that level since then. The drop in hydropower generation, ie, the energy source with the highest efficiency rate, and the fast-growing role of natural gas, led to deterioration in the sector s efficiency. Conversely, the efficiency of thermal power plants increased sharply with the commissioning of the TGV power plant. In, combined cycle technologies represented 75 percent of the thermal electricity generating capacity. Figure 6: Efficiency of power generation and thermal power plants Given the small size of the country, the rate of T&D losses is very low compared with the EU average. Figure 8: Electric T&D losses % % Total power generation Thermal power plants The average CO 2 emission factor for power generation has collapsed since the mid-s. The end of coal-fired generation led to a sharp drop in the amount of CO 2 emitted per kwh, which was about 2 gco 2 in. The use of natural gas in power generation results in a low CO 2 emission factor, despite the fact that 75 percent of the overall electricity production is thermal. Country reports Luxembourg 4
5 Luxembourg Energy efficiency report Figure 9: CO 2 emissions factor for power generation gco ₂ /kwh Industry 3.1. Policies: Voluntary agreements Voluntary agreements signed in and with the industrial sector are aimed at increasing energy efficiency by 2 percent by 22. Natural gas and electricity are the main energy sources in industrial energy consumption. The use of natural gas has surged since, from 15 percent of total consumption to 45 percent in. Electricity has also seen its share grow rapidly: it currently stands at about 35 percent of the sector s consumption, compared with 15 percent in. The share of coal slumped from 55 percent in to less than 1 percent in following structural changes in the iron and steel industries. Oil also accounts for 8 percent of total consumption (15 percent in ), while heat represents the remaining 3 percent. In energy-intensive industries represented 85 percent of industrial consumption, with the steel industry accounting for 75 percent. In, the share of those industries fell to 5 percent of overall consumption following a 75 percent cut in the energy consumption of the steel industry, which now accounts for 4 percent of the sector s consumption. The decline of this industry, along with the diffusion of the electric process, led to noticeable changes in the sector s consumption. The chemical and non-metallic minerals industries maintained shares of 6 percent and 5 percent, respectively, in. The Ministry of Economy and Foreign Trade provides grants for measures aimed at reducing energy consumption and increasing the use of high-efficiency combined heat and power (CHP) production in industrial companies Energy consumption trends: recession in the steel industry led to major changes Industrial energy consumption fell significantly (by 8 percent/ year) between and, and increased slightly thereafter. It fell by 8 percent in and. The recession in the iron and steel industries, along with the diffusion of the electric process, ie, a low energy consuming process, explains the large reduction seen in the s. Figure 1: Industrial energy consumption Figure 11: Energy consumption of industry, by source Heat Electricity Gas Oil Coal/Lignite Mtoe Luxembourg Country reports
6 Figure 12: Energy consumption of industry, by branch Figure 14: Share of Industrial CHP in industrial consumption % 8 16% 7 Other 14% Non metallic minerals Chemical Steel 12% 1 8% 6% 4% 2% 3.3. Energy intensity trends: strong energy intensity reduction The energy intensity of the Latvian industry is decreasing rapidly (by 4 percent/year between and ). That improvement was achieved through efficiency gains in the steel industry, which is the country s largest industrial consuming sector: the energy consumption per ton of steel produced decreased by 3.9 percent/year. Efficiency gains in the cement sector were almost insignificant (-.3 percent/year). Figure 13: Trends in the energy intensity of industrial branches %/year The energy intensity of manufacturing industry (excluding mining and construction) fell by 6.4 percent/year between and. When calculated at constant structure, the energy intensity of manufacturing has decreased at the slower pace of 5.2 percent/year. The difference is explained by structural changes in the industry, which account for 2 percent of the drop in energy intensity. Over the period -, the structural effect was even more pronounced, since it was responsible for the entire energy intensity reduction. The growing share of machinery and transport equipment, ie, the branch with the lowest energy intensity in the manufacturing industry, was responsible for the decrease seen in the energy intensity of the manufacturing industry over the period. Figure 15: Trend in energy intensity of manufacturing and structural effect 1% Total* Steel Chemical Cement** *Including construction and mining **Non metallic minerals %/year -1% -2% -3% -4% The share of CHP in industrial consumption has increased rapidly since and reached 13 percent in, which is below the EU average (17 percent in ). -5% -6% -7% Real variation Change at constant structure Structural effect All information or data provided by Enerdata, in any form, is the property of Enerdata and is protected in each country by national laws governing intellectual property. All information or data provided by Enerdata is copyright protected, inclusive of material appearing in a hard copy format or electronically. Data provided by Enerdata are based on compilation and analysis of the best sources in the industry. Enerdata has agreements with those providers to use and publish this data. All pictures Copyright ABB Country reports Luxembourg 6
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