The Ministries of Economy and Environment have unveiled a two-year funding programme to help municipalities develop digital solutions for smarter resource management. Local councils and their associations can now apply for grants of up to €500,000 per project under the new “Smart City” initiative.
The programme seeks to improve residents’ quality of life through technology that optimises energy and resource use. Ministers Lex Delles (Economy) and Serge Wilmes (Environment) cited existing examples like intelligent parking systems, adaptive traffic lights, automated river monitoring, and pipeline leak detection as models for proposed projects.
While Minister Delles emphasised expanding participation across municipalities, Minister Wilmes noted that technology alone will not meet climate targets – but will provide critical support.
The €5 million programme will accept applications in two phases, with deadlines set for 16 November 2025 (first wave) and 15 March 2026 (second wave). Individual projects may receive up to €500,000 in funding, though collaborative proposals involving multiple municipalities or submissions from councils with fewer than 3,000 inhabitants are eligible for higher co-financing.
The Luxembourg government is finalising amendments to introduce pre-financing for photovoltaic installations, with Minister Delles confirming the changes should receive government council approval before summer. The new provisions will restrict state subsidies to solar energy systems producing at least 3 kilowatt-hours.
The proposed threshold has drawn criticism from the Chamber of Employees, which warns the measure could exclude homeowners with smaller roof spaces from accessing subsidies. Minister Delles acknowledged these concerns, stating he would personally review the planned changes to financial aid provisions.
However, the minister questioned the economic viability of small-scale installations that might take decades to become cost-effective, suggesting participation in “energy communities” could represent a more beneficial alternative for homeowners with limited space.
