3FOOD

Third Industrial Revolution Consulting Group
and competitively priced energy, which is both environmentally sustainable and secure
for everybody. While the integration of regional markets is currently in progress,
Luxembourg should take steps to build out interconnectors and regulatory frameworks,
and support the development of harmonized market rules, to continue to evolve the
energy ecosystem on a regional and EU-wide level. Luxembourg should encourage
energy companies to move more aggressively into local flexibility markets and develop a
broader range of flexibility contracts with aggregators. These models are required to
address a new energy mix, new consumption patterns (e.g., e-mobility), and the
movement toward consumers becoming prosumers.
Assess the benefit/cost tradeoff from enhanced retail competition in Luxembourg. In
Luxembourg, additional initiatives should be analysed to foster the case for
transparency and more competitive pricing. The retail energy market of the near future
will also need to be flexible enough to accommodate new market entrants and
emerging energy as a service business models. Retail markets should also be assessed
with the evolution of wholesale markets, as there are strong links and interplays among
the underlying market structures.
Decision support is needed to enable the design of Luxembourg’s future smart energy
system. A number of intermediary initiatives are recommended to provide strategic
guidance and operational support, as Luxembourg embarks on this important energy
transition. These recommendations include scenario analysis to identify optimized
action pathways, stakeholder analysis to ensure scalable solutions involving
stakeholders of all sizes, and modeling platforms on which to visualize impacts from
different tradeoffs at the national and local level.
Public Policy
Support the development of Europe’s first nationwide smart grid. While thousands of
innovative demonstration and pilot projects are underway throughout Europe, these
initiatives are essentially small and lack the scale necessary to provide sufficient
evidence to inform Luxembourg’s future energy policy at the national level. Luxembourg
should seek European funding to implement a much larger project (e.g., 100,000
customers or more) and establish itself as a first mover at this scale. Such a project
would attract many new, smart energy business activities to Luxembourg, kick-starting a
journey towards commercializing the export of smart energy solutions to the rest of
Europe and elsewhere.
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