Investment aid for efficient heating and cooling networks
Do you want to request financial aid for an efficient heating or cooling network?
Under the Law of 8 December 2025 on Luxembourg's environmental and climate protection aid scheme, the Ministry of the Economy offers investment aid to companies investing in the construction, extension or modernisation of efficient heating and cooling networks — including production installations, thermal storage solutions and distribution or transport infrastructure.
Article 9 supports the decarbonisation of urban and industrial heating and cooling systems by encouraging the shift to renewable energy sources, waste heat recovery and high-efficiency cogeneration.
Eligible investments include:
- Construction of new networks using at least 85% renewable energy or waste heat (or a combination of both) — and from 1 January 2050, exclusively renewable energy or waste heat
- Extension or modernisation of existing networks that are or will become energy-efficient within a maximum of three years from the start of supported works
- Production of energy from renewable sources (including geothermal and heat pumps), waste heat recovery and high-efficiency cogeneration
- Thermal storage solutions connected to eligible networks
Important: Waste-based energy production must comply with the waste hierarchy principle. Waste used as fuel must qualify either as a renewable energy source or as input to a high-efficiency cogeneration installation.
Important: Modernisation must not increase fossil fuel-based energy production — except for natural gas, subject to strict climate alignment conditions for 2030 and 2050.
We can advise you on:
- whether your network project and company meet the eligibility criteria
- which application procedure applies to your situation
- how to structure your application and submit it via MyGuichet.lu
Maximum amount of financial aid
Article 9 uses a financing gap approach: the aid may cover up to 100% of the financing gap — defined as the difference between the eligible costs and the operating profit of the investment over its lifetime. The aid is limited to the minimum necessary to carry out the project.
There is no cap on the aid rate under the call for projects procedure.
Eligible costs are the total investment costs directly linked to the construction, extension or modernisation of the network — including production installations, thermal storage and distribution infrastructure.
Important: The application must be submitted before the start of works or the first binding order of equipment.
Important: Minimum thresholds apply: EUR 50,000 for SMEs and EUR 100,000 for large companies (except under the simplified procedure for SMEs).
Key figures
First come, first served
Key benefits
Benefit from the following advantages:
-
Full financing gap coverage
Unlike most other measures under the Environmental Law, Article 9 does not apply a fixed percentage aid rate. Instead, it covers up to 100% of the financing gap, making it particularly suited to capital-intensive infrastructure projects with long payback periods and limited commercial returns. -
A broad scope of eligible investments
From new district heating networks to the modernisation of existing systems, from renewable heat production to thermal storage, Article 9 covers the full value chain of efficient heating and cooling infrastructure — including waste heat recovery and high-efficiency cogeneration. -
Expert support throughout the process
Luxinnovation helps you assess your eligibility, identify the right application procedure, structure your financing gap analysis and submit your application via MyGuichet.lu, reducing complexity and maximising your chances of success.
Who can benefit?
This aid is open to all companies legally established in Luxembourg that hold a valid business permit and are investing in the construction, extension or modernisation of efficient heating and cooling networks.
Key eligibility conditions include:
For new networks:
- The network must use at least 85% renewable energy, waste heat or a combination of both from the outset
- From 1 January 2050: exclusively renewable energy or waste heat
For extensions and modernisations of existing networks:
- The network must be or become energy-efficient (as defined in Art. 2, point 44° of the Law)
- If not yet fully efficient after the supported works, the necessary additional upgrades must begin within 3 years of the start of works on the distribution or transport network
For production and storage investments:
- Energy must be produced from renewable sources (including geothermal and heat pumps), from waste heat recovery or from high-efficiency cogeneration
- Waste-based production must comply with the waste hierarchy principle
- Modernisation must not increase fossil fuel production — except for natural gas under strict climate alignment conditions
Minimum thresholds apply:
- EUR 50,000 for SMEs
- EUR 100,000 for large companies
Applications must be submitted online via MyGuichet.lu before any binding commitment is made.
This financial support measure is provided by the Ministry of the Economy.
Interested in applying for funding?
Feel free to contact us for further information and guidance. We are also available to discuss how this funding measure and others would best fit into your long-term strategy.
