ENTSOG Annual Report 2016

In 2016 ENTSOG was well on its way to successfully

completing its work on the development of Network Codes,

by nearing the finalisation of the Network Code on Tariffs as

well as the update of the Network Code on Capacity Alloca-

tion Mechanism, which includes new rules for incremental

capacity as a core element. By early 2017, the implementa-

tion and effect monitoring stage of the network codes’ life-

cycle has commenced.

One important event in the last year that will influence the

prospective work of the gas TSO business was the start the

process for the “Quo Vadis EU gas market regulatory frame-

work – a study on a Gas Market Design for Europe” by the

European Commission. At the time this Annual Report is

published the work on this study will be ongoing and I want

to take the opportunity to contribute with some ENTSOG

viewpoints.

There are a number of elements that need to be considered

in the future gas market design. There is a need for a high-

er level of interaction between electricity and gas markets.

This increased level of interaction will need to be assessed

to ensure that the future gas market is able to respond to the

requirements of the energy sector as a whole, which means

from today’s perspective higher gas system load flexibility

and most probably also further investments into capacities

and innovation. There will be a need for cooperation and

optimisation between the various parts of the energy sector,

such as the heating sector with an efficient balance between

gas and electricity usage and the transport sector with an

increasing use of gas fired vehicles and ships. The interac-

tion between the various parts of the energy sector should

be considered in meeting the EU climate targets. Gas mar-

ket design should enable the transfer of energy across such

sectors.

Any proposal also needs to consider the development and

application of new technologies. The gas market design

needs to accommodate the potential development and

utilisation of power-to-gas as well as the increasing produc-

tion of, and demand for, renewable gases. The market

design should provide flexibility in how to encourage such

development.

At ENTSOG we are looking forward to participate and

contribute to these important discussions. We will be

challenged as gas TSOs – but it is my firm belief that the gas

transmissions systems of Europe have a lot offer for the

energy transition and that we will continue to play an impor-

tant role in this transition, now and in the future.

President’s Foreword

The gas market design needs

to accommodate the potential

development and utilisation of

power-to-gas as well as the

increasing production of, and

demand for, renewable gases.

STEPHAN KAMPHUES

President, ENTSOG

ENTSOG Annual Report 2016 |