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Ten Year Network Development Plan 2015
7.3 From projects to
commissioned infrastructure
The Infrastructure chapter shows that promoters strong-
ly support infrastructure projects (transmission, UGS or
LNG terminals). This is in line with EU energy policy
which sets infrastructures as a main requirement for the
completion of the Internal Energy Market.
As a result, projects from the Baltic region, Central-Eastern and South-Eastern
Europe represent a significant share of all projects and this also reflects the share of
investment needs in these countries. Nevertheless this political willingness,
especially under uncertain conditions, is not sufficient to trigger the required invest-
ments.
The analysis of responses received from promoters related to investment barriers
helps to better understand the current situation. The most recurrent answers refer
to political and regulatory conditions. Gas infrastructure is a capital intensive invest-
ment which requires a long term visibility on transported volume to support final
investment decision on the basis of project profitability. Unfortunately, the role of gas
in the EU energy mix does not provide sufficient certainty to project promoters.
In addition, the current focus is rather on day-ahead market and excessive pressure
on regulated tariff when at the same time the European regulatory framework is still
not fully implemented. This undermines the economic benefits of market integration
and does not provide appropriate incentives to trigger necessary projects for the
future gas market. As a result there is an increasing trend to rely on political actions
and co-financing to launch new investments. Unfortunately, this does not guarantee
the long term attractiveness of the European market to producers.
The TEN-E Regulation could improve this situation and would be able to ensure the
timely delivery of key infrastructures. ENTSOG is committed in this process with the
development of the CBA methodology, its implementation and to give support to
project promoters and Regional Groups. However, this bundle will have no effect
when the environmental benefits of gas are not recognized and a sufficient share of
gas in the European energy mix cannot be ensured.