ENTSOG TYNDP 2015

6.4.3 SUPPLY SOURCE PRICE DIVERSIFICATION (SSPDi)

The Supply Source Price Diversification indicator measures the ability of each country to benefit from a decrease of the price of each import source. The approach is based on marginal gas prices and therefore a country can benefit from a source while not having physical access or being physically dependent on that source. However, a well-integrated gas infrastructure is a pre-condition to benefit from the decrease of the price of one supply source. The diversification of a country represents its ability to mirror the price decrease of any import source. Each supply source is tested one-by-one without consideration of its maximum supply scenario meaning that the diversification is not simultaneous. The higher the indicator is, the higher the supply price diversification. A country having a SSPDi of thirty percent towards Russian gas means that if Russian price decreases by ten percent then the gas bill of that country would decrease by three percent. The following graphs show the magnitude of the price diversification of each coun- try toward each source by the addition of the SSPDi toward each supply source. A one hundred percent value indicates that a Zone can fully benefit from the price decrease of a source, therefore the stack graph can go beyond one hundred percent in case of diversification toward several sources. Under the Low scenario, the slow and overall reducing trend along the TYNDP time period illustrates the decreasing supply price diversification of Europe. This results from a combination of increasing demand and stable import capacities beyond 2020 under this infrastructure scenario. The commissioning of new import infrastructure up to 2025 improves the situation, compared to the Low scenario, as it enhances the import availability. With no addi- tional import projects beyond 2025 the indicator decreases as a result of increasing demand. Details can be found in Annex E.

\\ See figures 6.29 and 6.30 on pages 176–179

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