Luxembourg and Denmark collaborate in the field of renewable energy, with Luxembourg providing financial support for the construction of "energy islands" in the North Sea.

In February, the Chamber of Deputies ratified an agreement between Luxembourg and Denmark, solidifying their cooperation in the statistical transfer of renewable energy.

Luxembourg invests in development of renewable energy in the North Sea

In practical terms, this means that Luxembourg will allocate an annual sum ranging from €33.12 million to €66.24 million to Denmark between 2021 and 2025. These funds will be invested in renewable energy projects within Denmark.

In return, Luxembourg will have the opportunity to include a portion of the renewable energy generated in Denmark in its own national targets for renewable energy development.

The Ministry of Energy highlighted that this treaty enables Luxembourg to support renewable energy advancements in the North Sea, thereby fulfilling the renewable energy commitments made by member states at EU level.

Agreement not being called into question, despite delay

While part of Luxembourg's financial contribution was intended for the construction of the energy islands off the Danish coast, it has been revealed that the project's current implementation plan lacks profitability.

Consequently, Denmark aims to reassess the project and explore more favourable approaches, resulting in a delay in the public tender process, which is expected to conclude by year-end.

Nevertheless, Denmark affirms its commitment to the energy islands project and the extensive expansion of wind turbines in the North Sea. This was confirmed to Luxembourg's Minister for Energy, Claude Turmes, during a meeting with his Danish counterpart on Thursday.

A press release by the Danish Ministry of Energy emphasises that a few months' delay in project implementation will not alter the fact that Denmark will generate significant amounts of renewable electricity in the coming years.

This ensures the statistical transfer of renewable energy, as outlined in the Luxembourg-Denmark agreement, according to Luxembourg's Ministry of Energy.

The agreement further stipulates that any unallocated funds from Luxembourg's contribution will be invested in other renewable energy projects.

The Ministry of Energy highlights the importance of Luxembourg's participation in significant European initiatives related to renewable energy development.

As evidence of this commitment, Luxembourg has signed a letter of intent with Portugal for green hydrogen production and is supporting the construction of a large wind farm off the Estonian coast.

The Grand Duchy is also aiding Germany and Estonia in the creation of an offshore pipeline to supply electricity from the Estonian wind farm to the German-Luxembourg electricity market.