ENTSOG TYNDP 2017 - Main Report

Finally, significant and unexpected changes in national and EU policies and in the regulatory framework can negatively affect investment decisions which, considering the long-term and capital-intensive nature of the gas industry assets, requires a sta- ble and well-defined context.

5.3.2. MARKET ENVIRONMENT

Many promoters are facing challenges in triggering investment on a market basis.

51

Lack of market support Lack of market maturity Market uncertainty Other

%

49

45

Figure 5.5: Overview of the Market related project barriers

The lack of market maturity is also identified as a barrier with regard to the num- ber of users and the development of the commercial arrangements. In some regions, promoters are facing additional challenges as the gas market is not sufficiently mature to give the appropriate signals and provide sufficient financial commitment. These regions are often at the same time suffering from a lack of ad- equate diversification of supply sources and infrastructure integration compared to the rest of the European gas market. For some project promoters, typically in mature gas consumer economies, the un- certainty about the evolution of natural gas demand does not help in providing the right signals for investment decisions. Within the framework of the TEN-E Regulation, European Commission has empha- sised that co-financing will only apply for key projects not affordable solely within the concerned markets. Nevertheless, the expectation persists that co-financing would reduce the need of long term commitment by the market.

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