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South-North Corridor GRIP 2017
An update of the SEN has been undertaken at beginnings of 2017
10)
mainly to align
the strategy with the new market context and the evolutions experienced between
2013 and 2016 at European level. The revision of the strategy should follow the main
lines defined in the previous document with the ultimate target to increase the li-
quidity and the competitiveness of the Italian gas market, expected to become the
Southern Europe gas hub. A special attention is expected to be provided to the fol-
lowing aspects:
\\
development of new regasification capacity and cross-border interconnec-
tions, in line with the increased flexibility and security of supply requirements
of the EU gas markets
\\
ending the isolation of the areas still not reached by natural gas (in particular,
Sardinia island)
\\
diffusion of new uses of gas in the transport sector (both as CNG and LNG)
\\
development of a biomethane chain to increase green gas volumes and utili-
sations
4.2.5 LUXEMBOURG
Luxembourg is firmly embedded in Central Western Europe. An analysis of Luxem-
bourg’s energy future can therefore not be made without understanding the key
drivers changing Europe’s energy landscape and its direct neighbours.
Luxembourg has a highly developed economy, with the 2
nd
world’s highest GDP per
capita
11)
. Despite the fact that Luxembourg’s population is expected to almost
double by 2050, from currently 560,000 to almost 1,100,000 in 2050, the total
final
energy consumption in electricity and gas is expected not to further grow by 2050.
Energy transition in Luxembourg towards 2050 horizon is driven by energy efficiency
and integration of renewables in the distribution networks. Drivers such as the
COP21 Paris Agreement and the various European Union energy targets and
directives, as well as global trends in energy sector transformation and technology
deployment, especially digitalisation, will have a significant impact on the final
energy consumption, mainly driven by electricity. Nevertheless, natural gas will play
an important role in the energy transition until 2050 and gas demand even shows
moderate growth for 2025. Industrial gas consumption is projected to be stable, but
the consumption in the residential heating sector is projected to further increase
mainly due to the switch from heating oil to gas of the customers still awaiting this
switch.
Since 2008, Luxembourg’s energy policy has also been focused on reducing CO ²
emissions in transport, as a large labour-work force is coming from the neighbouring
countries (France, Belgium, Germany), generating a high energy consumption and
CO ² emissions related to the transport sector.
10) The final text of the SEN 2017 was not published when this Report has been sent off to the editor.
11) Source:
www.imf.org/external/pubs/ft/weo/2016/02/weodata/index.aspx