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ACER publishes today an Opinion on the European Network of Transmission System Operators for Gas' (ENTSOG's) draft cost-benefit analysis (CBA) methodology for hydrogen infrastructure.
What is the ENTSOG’s CBA methodology?
ENTSOG is required by the TEN-E Regulation to draft a CBA methodology providing guidance on hydrogen infrastructure projects.
This methodology will be used to develop the future European ten-year network development plans (TYNDPs), the selecting process of projects of common interest (PCIs), and the decisions on cross-border cost allocation (CBCA) for hydrogen infrastructure projects.
What are ACER’s recommendations?
In its Opinion, ACER concludes that the draft CBA methodology for hydrogen infrastructure projects largely aligns with the requirements outlined in the TEN-E Regulation, but it calls for further improvements:
- Making the CBA methodology and its results more practical and replicable.
- Adapting the hydrogen reference networks.
- Strengthening the clustering rules.
- Increasing the consistency with the electricity and other CBA methodologies.
- Ensuring that the CBA indicators are fit-for-purpose.
- Applying the CBA to all TYNDP projects.
What are the next steps?
ACER’s recommendations aim to improve the draft CBA methodology, making it more effective and transparent in evaluating the merits of hydrogen infrastructure projects.
ENTSOG is required to take into account ACER’s recommendations before submitting an adapted version of the methodology to the Commission for approval (by the end of 2023).
Stay tuned for further developments in hydrogen infrastructure such as ACER’s upcoming Opinion on the draft regional lists of proposed hydrogen PCIs.
