ENTSOG Annual Report 2015

Natural gas has a higher conversion- efficiency than other fossil fuels when producing electricity or heat, meaning less energy is lost in the process.

RESEARCH AND DEVELOPMENT PLAN (R&D PLAN) ENTSOG methodologies, tools and data scenarios are being continuously improved. In 2014, ENTSOG finalised many deliverables planned in previous years’ AWP. Altogether it enabled cost-benefit analysis methodology to be implemented. The resulting improvements were also implemented in other deliverables such as the Supply Outlooks. The Supply and Demand (S&D) and Network Modelling (NeMo) Kernel Groups form the core of the Investment Working Group in charge of developing innovative ap- proaches and tools. S&D KG performs research to expand knowledge of the supply and demand aspects of European gas. This know­ ledge is used to develop an improved definition of the as- sumptions and approaches used in the seasonal outlooks and TYNDP. In 2015, S&D KG deepened its knowledge of ENTSO-E TYNDP input data and results and consequently improved the approach to gas demand for power generation for TYNDP 2017. In addition, the Kernel Group defined ration- ales for three demand scenarios to be used by TSOs when providing demand data for TYNDP 2017. ENTSOG’s R&D activity also includes other matters such as evaluating the impact of demand-side measures. Consider- ation of these issues is underway and will continue through- out 2016. In 2015, ENTSOG and ENTSO-E already cooper- ated on their Winter Outlooks, which allowed them to reflect on the ability to mitigate gas security-of-supply issues by substituting gas-fired generation means by other generation means as part of ENTSO-E Winter Outlook. In 2015, ENTSOG factored in feedback from TYNDP 2015 and, consequently, began to improve its modelling ap- proach. One such improvement is the modelling of high- demand situations (making use of average climatic year modelling results) independently from the rest of the year. This was tested successfully within Winter Outlook 2015/2016. ENTSOG also initiated a change in the pro- gramming language which will allow for faster simulations. Network Modelling Kernel Group Supply and Demand Kernel Group

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ENTSOG Annual Report 2015