ACER Recommends Improvements To The Draft Second Cost-Benefit Analysis Methodology For Gas Infrastructure Projects

The Agency published today its Opinion on the draft second Cost-Benefit Analysis (CBA) Methodology submitted by ENTSOG. The CBA Methodology is applied for planning European gas infrastructure and plays a fundamental role in the gas Ten-Year Network Development Plan (TYNDP), the selection of Projects of Common Interest (PCIs) and the investment requests and Cross-Border Cost Allocation (CBCA) procedures.

The Agency notes some improvements in this second draft CBA Methodology, however it identifies the need for the final version - to be used in the next gas TYNDP for 2018 - to include a better monetisation of benefits, the reduction and simplification of the non-monetised indicators, and improved presentation of the main results of project-specific CBAs.

Furthermore, the Agency recommended mid- and long-term updates and improvements, including for example the development of a detailed network model, the refinement of the market model and the full implementation of the interlinked electricity and gas market model, which should be considered by ENTSOG and reflected in an “Action Plan” which could be implemented beyond the TYNDP 2018 horizon.

You can access the Opinion here.