Energy Policies Of Iea Countries Luxembourg 2004 Review Oecd by Oecd 9789264108790, 9264108793 instant download after payment.

Since the last review, Luxembourg has made commendable progress. Over half of the electricity and gas markets were opened for competition by April 2004. The independent regulator in charge of the energy markets has been established. Fuel diversification, energy independence, and stability of electricity supply were increased by a new Combined Cycle Gas Turbine Power Station. Luxembourg ratified the Kyoto Protocol in 2001 and submitted its National Allocation Plan to the EU Commission in April 2004.Meeting its Kyoto commitments will be a major challenge for Luxembourg. The restructuring of the iron and steel industry, which has contributed a lot to greenhouse gas emissions reduction, is over. Population increase and strong demand for petroleum products are now driving up emissions. Low taxes attract non-residents for vehicle refuelling, pushing up petrol consumption. Therefore, the government should address this fuel taxation issue in the wider context of EU tax harmonisation.Luxembourg will have to address its Kyoto target not just by relying on flexible mechanisms, but also by looking for further improvement of energy efficiency in the residential/commercial and transport sectors thereby enhancing its energy security. While considerable progress has been made in promoting renewables, the current support scheme should be reviewed to improve its cost-effectiveness.Because of its small size and location, effective competition in Luxembourg’s energy markets is affected by the market conditions of neighbouring countries. The regulator should co-operate with its counterparts in these countries.To address these challenges, adequate resources should be provided to the Energy Directorate and the regulator.