I told you, my knowledge of templates is crude. I dun know exactly what an Lua module is, or how to create one. And am not sure what you mean by parameters. Are talking about the digits sandwiched with braces?
It is much more powerful than templates though, and faster too. It can look inside text and search for or replace individual characters. So it could also strip out acute accents and underdots from accented Vulgar Latin forms, which a template can't do.