Demand for gas and electricity in Luxembourg is growing
Johannes Plenio, Unsplash
The ILR Regulatory Institute has published a summary of key indicators for the Luxembourg electricity and gas market for 2024. These reports provide a rare opportunity to track consumption patterns, price dynamics and progress in the development of the national energy sector.
The total electricity consumption in the country in 2024 was 6,197 GW⋅h. This is 125 GW⋅h more than in 2023, representing an increase of 2.06%. The vast majority of electricity (76%) was imported, while 24% was domestically generated. National generation totalled 1,511 GW⋅h, with wind power remaining the main source (467 GW⋅h). However, its volume decreased by 5.6% compared to the previous year.
On the other hand, the solar power industry showed a sharp jump. The installed capacity of solar panels increased from 394 MW to 550 MW over the year, and production grew by 22.4% to reach 360 GW⋅h. The number of installations increased almost 2.5-fold, from 8,988 to 22,610. This shows the high interest of private households and businesses in decentralised energy.
The average electricity supply price (including everything: grid, taxes and state subsidies) for households was 202.7 €/MW⋅h. This is about 20.27 euro cents per kW⋅h - a slight increase of €1.4 compared to 2023. The number of customers who changed electricity supplier almost tripled: from 651 to 1,512.
Natural gas consumption also increased by 4.75 per cent, reaching 6,753 GW⋅h. At the same time, almost the entire volume of gas (6,705 GW⋅h) was imported from Belgium. Domestic biomethane production totalled only 47 GW⋅h.
Despite the increase in consumption, the revenue from gas supply has decreased: from €639 million in 2023 to €382 million in 2024. The reason is government measures to limit price increases. More than 94 per cent of consumers still choose the basic (and most affordable) tariff. Competition in the market is extremely low: less than 0.2% of households and 0.5% of business customers changed supplier during the year.
The integrated gas price - including transport costs, taxes and subsidies - was 82.4 €/MW⋅h. By comparison, in 2020 this figure was only 39.3 €/MW⋅h, i.e. almost half as much.
Encevo Group holds the largest share of gas supplies - 59.55% of the total volume. Its main competitors are Sudenergie and ArcelorMittal Energy. For electricity, the distribution among suppliers is similar, although thanks to price transparency and growing interest in alternative sources, the market is beginning to show signs of recovery.
