ENTSOG TYNDP 2015

7.3 From projects to

commissioned infrastructure

The Infrastructure chapter shows that promoters strong- ly support infrastructure projects (transmission, UGS or LNG terminals). This is in line with EU energy policy which sets infrastructures as a main requirement for the completion of the Internal Energy Market. As a result, projects from the Baltic region, Central-Eastern and South-Eastern Europe represent a significant share of all projects and this also reflects the share of investment needs in these countries. Nevertheless this political willingness, especially under uncertain conditions, is not sufficient to trigger the required invest- ments. The analysis of responses received from promoters related to investment barriers helps to better understand the current situation. The most recurrent answers refer to political and regulatory conditions. Gas infrastructure is a capital intensive invest- ment which requires a long term visibility on transported volume to support final investment decision on the basis of project profitability. Unfortunately, the role of gas in the EU energy mix does not provide sufficient certainty to project promoters. In addition, the current focus is rather on day-ahead market and excessive pressure on regulated tariff when at the same time the European regulatory framework is still not fully implemented. This undermines the economic benefits of market integration and does not provide appropriate incentives to trigger necessary projects for the future gas market. As a result there is an increasing trend to rely on political actions and co-financing to launch new investments. Unfortunately, this does not guarantee the long term attractiveness of the European market to producers. The TEN-E Regulation could improve this situation and would be able to ensure the timely delivery of key infrastructures. ENTSOG is committed in this process with the development of the CBA methodology, its implementation and to give support to project promoters and Regional Groups. However, this bundle will have no effect when the environmental benefits of gas are not recognized and a sufficient share of gas in the European energy mix cannot be ensured.

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Ten Year Network Development Plan 2015