9 / 232
Ten Year Network Development Plan 2015 |
9
PCI – LNG
Non-PCI – LNG
PCI – Transmission
Non-PCI – Transmission
PCI – UGS
Non-PCI – UGS
Projects
13
26
88
88
7
37
Figure 1:
Projects submitted to the TYNDP 2015 (PCI refers to the 2013 approved list)
Financing
Market
Permit Granting
Regulatory
Political
Other
%
11
26
13
36
9
5
Figure 2:
Investment barriers identified by promoters
FROM PROJECTS TO COMMISSIONED INFRASTRUCTURE
ENTSOG has received submissions for 259 projects from transmission, storage and
LNG terminal promoters by the deadline of September 2014. The withdrawal of the
South Stream project, approved by the promoter and the European Commission, is
the only exception because of its possible major impact on the assessment. The
project list includes the PCI resulting from the first selection and all candidates for
the second round of the PCI assessment.
The number of projects is slightly lower than in the previous TYNDP edition, but
there are still sufficient infrastructure projects to deliver market integration as shown
in the present Report.
While construction works are normally completed on time, the final investment
decision for many projects is postponed. Therefore, ENTSOG asked promoters to
identify the main challenges they have been facing and derived the following chart.
The first barriers mentioned by promoters are related to various aspects of the
regulatory frameworks. In some cases these stem from a lack of implementation
of European regulation preventing a well-functioning market which is a major
prerequisite for investment decisions. In other cases, some national frameworks are
perceived as excessively focusing on the reduction of the regulated tariff, not recog-
nizing the economic benefits of further market integration and therefore granting
unsufficient rate of return.
The second group of barriers stems from a short term focus of the market which is
not providing sufficient financial commitment. This is a result of the combination of
an unfavourable economic environment with regulation, which is nowadays favour-
ing the short term perspective. This can result in a higher reliance on other solutions,