Compensation mechanism for renewable electricity

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 19 July 2018

The regulation establishes a clearing mechanism for the net costs resulting from the feed-in tariff system for the deployment of renewable energy instillations. 

The compensation fund is managed by the Luxembourg Institute of Regulation (ILR), which sets the amount of the annual contribution based on the market price of electricity produced by conventional methods. The revenues gathered through the mechanism are distributed to the end electricity consumers in order to decrease electricity bills costs.

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