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Third Industrial Revolution Consulting Group<br />

Introduction<br />

STATE OF PLAY AND LUXEMBOURG VISION<br />

This complementary report presents the combined views from a team of independent energy<br />

experts 20 from the Energy Pillar within the Third Industrial Revolution Strategy Study for<br />

Luxembourg. This report provides expert insights on the transition path toward a future energy<br />

system for Luxembourg. It incorporates the findings from the initial Luxembourg Energy<br />

Working Group (WG) workshops held between February and April 2016, as well as more recent<br />

results from the Executive Seminar held in Luxembourg on May 25-26, 2016 and a follow-up<br />

meeting held in Luxembourg on July 5, 2016.<br />

Presented first is our view of the changing energy landscape affecting Luxembourg, Europe, and<br />

the rest of the world. In this section, we describe drivers such as the COP21 Paris Agreement<br />

and the various European Union energy targets and directives, as well as global trends in energy<br />

sector transformation and technology deployment. Next, we assess Luxembourg’s 2050 Vision<br />

for Energy in the context of the current state of the country’s energy demand, supply,<br />

networks, and markets. We then present our priority recommendations for enabling the energy<br />

transition in Luxembourg, building on several of the initial 10 measures proposed by the Energy<br />

Working Group. These recommendations are organized along the following three themes:<br />

market design and regulatory framework, new business models and financial schemes, and<br />

experimental distribution grid clusters. We end by summarizing our specific proposals for the<br />

TIR roadmap for Energy and Luxembourg’s 2050 Vision for Energy.<br />

A Changing Energy Landscape: Europe Energy Outlook 2050<br />

Luxembourg is firmly embedded in Europe and its<br />

institutions. An analysis of Luxembourg’s energy<br />

future can therefore not be made without<br />

understanding the key drivers changing Europe’s<br />

energy landscape.<br />

COP21 21<br />

The COP21 Paris Agreement is probably the most<br />

important international agreement influencing how we perceive, produce, and consume<br />

20 These experts include DNV GL, Fraunhofer, and Navigant.<br />

21 Paris Agreement, FCCC/CP/2015/L.9/Rev.1 (PDF). UNFCCC secretariat, December 2015.<br />

23

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