ENTSOG TYNDP 2017 - Main Report

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Ten-Year Network Development Plan 2017 Main Report | 175
6.1 General consideration on
assessment results
ENTSOG has carried out an extensive assessment of
the European gas system in order to identify potential
investment needs and how projects submitted to
TYNDP help to mitigate these needs. This TYNDP
was developed applying the Energy-System Wide Cost
Benefit Analysis (CBA) methodology1) that was ap-
proved by the European Commission in February 2015.
This assessment represents the TYNDP-Step of the
Energy System-Wide CBA (ESW-CBA) and as such it
focuses on different levels of infrastructure develop-
ment rather than on single projects. In preparation to
the individual assessment of PCI candidates, which
will take place outside of TYNDP as part of the 3rd PCI
selection process, the report focuses on the Low and
Advanced Infrastructure levels. A specific section of the
assessment chapter is dedicated to the analysis of the
2nd PCI list Infrastructure level. It gives a view of the
overall impact of the current list of Projects of Common
Interest from the 2nd PCI selection in 20152).
The results of the assessment have been structured to have a strong alignment with
both the third energy package and the TEN-E regulation. In particular the identifica-
tion of investment gaps, notably with respect to cross-border capacities, is under-
stood as the assessment of the low infrastructure level. The first section of this chap-
ter is specifically dedicated to this assessment. The low infrastructure level is based
mainly on the currently existing gas infrastructure, complemented by the FID
projects for which realisation is considered almost certain.
The assessment of the investment needs is presented before the European
system-wide costs and benefits, stemming from the infrastructure projects in the
advanced infrastructure level. In both parts, the infrastructure levels are evaluated
towards the market integration and operability, competition, security of gas supply
and sustainability. The benefits from the 2nd PCI list are shown through the assess-
ment of the 2nd-PCI list infrastructure level.
The assessment is made in accordance with the above mentioned CBA methodolo-
gy. However, based on stakeholders’ feedback, ENTSOG has enlarged this TYNDP
assessment scope on a voluntary basis, in particular by proposing further monetisa-
tion. For this edition, an EU-wide approach to value of lost load is proposed, based
on the recent years’ ratio between the EU-28 gross domestic production and gross
inland consumption. This approach allows a valuation of cases where high demand
simulations lead to identifying a demand disruption risk. This TYNDP also introduc-
es the Import Price Spread configuration. It shows the benefits of infrastructure for
1)
2)