The import of electricity from Germany is subject to strong fluctuations and directly influences electricity prices in Luxembourg. Injection from German networks was sometimes zero in 2023, but reached 800 megawatts during peak periods. On average, 290 megawatts came from Germany.
Since Luxembourg and Germany form a common market area and electricity comes largely from renewable energy, the price is subject to fluctuations, depending on the availability of wind and solar energy. According to Economy Minister Lex Delles (DP), who was responding to a parliamentary question from ADR MP Tom Weidig, it is however not possible to precisely calculate the impact of this effect on consumer prices.
Despite these uncertainties, Luxembourg remains dependent on electricity imports. In 2023, 77.7% of electricity needs were covered abroad, including 52.3% by Germany. While German deliveries have declined in recent years, imports from Belgium have increased.
Despite dependence on Germany, security of electricity supply remains assured. The European internal market ensures that electricity is produced and distributed in the most cost-effective way possible. This leads to the actual energy mix varying depending on supply. According to ENTSO-E, the association of European electricity transmission system operators, Luxembourg and Germany perform well in terms of security of supply.
However, developments in the field of renewable energies, network capacities and controllable power plants must be closely monitored. Network development, in particular, plays a vital role.
-In order to guarantee Luxembourg’s independence from foreign electricity in the long term, the construction of a new 380 kV very high voltage line between Germany and Luxembourg is considered essential. The planned line should help avoid bottlenecks and improve the stability of the network.
Luxembourg is also prepared for crisis situations. European “network codes” require transmission system operators to minimize negative effects on neighboring countries. In addition, transport network operators and the government have emergency plans which are tested regularly.
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