ENTSOG Annual Report 2016

2016 from the General Manager’s view point

In 2016 ENTSOG passed the 7  th year since being established late in 2009. And it has been another challenging year for ENTSOG and its members and a year where ENTSOG has reached some important milestones.

The DNA of ENTSOG’s way of working is focused on inte- grating the viewpoints of stakeholders, EU institutions and TSOs – with the aim of creating solutions together with stakeholders and which are accepted by all to the largest extent possible. This requires open and transparent processes where dialogues with stakeholders are estab- lished and maintained on an early stage of every process. This approach may seem to take more time – but ENTSOG believes that this time is well spent and will result in better and more robust end results. In 2016 ENTSOG was hosting/co-hosting and participating in 23 workshops with stakeholder involvement. In addition, ENTSOG conducted four General Assembly meetings, twelve Board meetings and 81 internal meetings with its members – and more than 1,500 different people were participating in these meetings. This shows both the inter- est of stakeholders to participate as well as the dedication of the gas TSOs and its representatives to participate, contrib- ute and deliver – with the result that ENTSOG also in 2016 has delivered as expected. ENTSOG was in the first years since its establishment focused on the initial development of network codes, on getting the first TYNDP versions done, on establishing the Transparency Platform with large amounts of operational gas data as well as a number of other activities. Now, a new phase is approaching where ENTSOG is engag- ing in improving the existing network codes, TYNDP models, Transparency Platform – based on input from stakeholders and EU institutions as well as from the TSOs. Improvements on ENTSOGs deliverables and way of working will require a close and continuous dialogue with stakeholders, the EU institutions and ENTSOG’s members – who are not only financing ENTSOG’s work but are also executing the imple- mentation, providing the data and allocating the human resources and expertise to ENTSOG.

After several years of extensive preparations, intense work and tough negotiations the Tariff Network Code – which may be the last of the gas network codes – was agreed in sub- stance, though formally not agreed before early 2017. As of now, implementation of the Tariff Network Code – and the agreed changes to the Capacity Allocation Mechanism Network Code (regarding the handling of incremental ca- pacity) – will now have the full attention of ENTSOG and the TSOs. In addition, ENTSOG is conducting its monitoring task – regarding implementation as well as effects of the network codes. Collection of information for the 5  th version of the Ten Year Network Development Plan, TYNDP 2017, project over- views, modelling, simulations etc. was taking place during 2016 and the draft report – containing more than 200 projects – was launched for consultation in December 2016. The main conclusions are that in general the Europe- an gas transmission system is robust and ready to support security of supply as well as the functioning of the gas mar- ket – but also that some regions of Europe still are in the need of further gas infrastructure developments. For TYNDP we have taken the first steps of the cooperation between ENTSO-E and ENTSOG – a cooperation which will be further strengthened in the upcoming TYNDP. The coop- eration between the electricity and gas sectors will become more important in order to meet the challenges of the ener- gy transition in the most efficient and climate friendly way. ENTSOG has in 2016 been contributing with its expertise and practical experience to the revision of the Security of Supply Regulation for Gas – cooperating with both the Euro- pean Commission and the ITRE Committee of the European Parliament. In particular ENTSOG and its members have contributed with information on the structure of the various gas supply corridors to Europe as a cornerstone in the analyses and cooperation interfaces in relation to security of the gas supply. ENTSOG’s regional coordination structure – the so-called ReCo System for Gas – will now as a part of the revised regulation contribute by ensuring the relevant coop- eration on the operational level.

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ENTSOG Annual Report 2016