ENTSOG TYNDP 2017 - Main Report

F.2.3.2 CBA Methodology update process

The CBA methodology currently in force is the one approved by the European Commission in February 2015. This methodology has been applied to develop TYNDP 2015 as well as TYNDP 2017. For the latest edition, ENTSOG has comple- mented the CBA methodology with additional elements on a voluntary basis. Based on the experience of TYNDP 2015 and 2017, ENTSOG sees benefits in updating and improving the CBA methodology to be applied for the preparation of its TYNDP 2018, as foreseen in Article 11(6) of Regulation (EU) No. 347/2013. During 2017, ENTSOG intends to work on an updated and improved methodology by: \\ Consulting stakeholders on possible improvements; \\ Developing the proposal for an updated methodology subject to the Agency’s and European Commission’s opinions; \\ Adapting the methodology upon receipt of the Agency’s and European Commission’s opinions, and submitting it to the European Commission for approval Application of the updated CBA methodology for the preparation of TYNDP 2018 will require that the European Commission can approve it the by the end of 2017. The following ACER medium-term to long-term recommendations relate to this process: \\ Better incorporate the market (“shippers”) perspective on infrastructure gaps; \\ Significantly improve the CBA methodology, in particular regarding the collection, verification and use of project data (including cost data) and scenarios, measurement of benefits, and further monetisation of the benefits of the projects, in line with the Agency’s opinion No 04/2014 on the CBA methodology and other recommendations; \\ Improve the model and modelling used for the TYNDPs; \\ Develop, in consultation with stakeholders, clustering and grouping guidelines for promoters to be used in the TYNDP context and subsequent PCI selection process; The recommendations will be investigated as part of the CBA Methodology update process. On the model and modelling tool used for TYNDP, the ACER recommendation in particular points to the incorporation of further market-related elements and to full documentation of the TYNDP model. On this topic, ENTSOG would first like to recall the response it provided to ACER opinions on ENTSOG Annual Work Programme 2017 (opinion No 14-2016) and on the consistency between TYNDP and NDPs (opinion No 14-2016). The ENTSOG model for the TYNDP was created following the requirements from Regulation (EU) No. 715/2009 that defines the modelling of the integrated network as a task for ENTSOG. This approach was further extended following the later requirements from Regulation (EU) No. 347/2013. Here the requirements for a methodology, including on network and market modelling, for a harmonised energy system-wide cost-benefit analysis at Union level (CBA methodology) is defined. The way ENTSOG is modelling the European gas infrastructure is fitted to the EU wide perspective. The technical capacities as input data for the modelling tool stem directly from the TSOs. They are calculated with their national models and tools; their expertise is therefore reflected in ENTSOG’s modelling. It is key for the analysis done with the ENTSOG modelling tool to have clearly defined interfaces and perimeters and to avoid significant overlaps between the EU wide and national perspectives.

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