ENTSOG TYNDP 2015

FROM PROJECTS TO COMMISSIONED INFRASTRUCTURE

ENTSOG has received submissions for 259 projects from transmission, storage and LNG terminal promoters by the deadline of September 2014. The withdrawal of the South Stream project, approved by the promoter and the European Commission, is the only exception because of its possible major impact on the assessment. The project list includes the PCI resulting from the first selection and all candidates for the second round of the PCI assessment.

13

37

26

PCI – LNG Non-PCI – LNG PCI – Transmission Non-PCI – Transmission PCI – UGS Non-PCI – UGS

7

Projects

88

88

Figure 1: Projects submitted to the TYNDP 2015 (PCI refers to the 2013 approved list)

The number of projects is slightly lower than in the previous TYNDP edition, but there are still sufficient infrastructure projects to deliver market integration as shown in the present Report. While construction works are normally completed on time, the final investment decision for many projects is postponed. Therefore, ENTSOG asked promoters to identify the main challenges they have been facing and derived the following chart.

5

11

9

Financing Market Permit Granting Regulatory Political Other

26

%

36

13

Figure 2: Investment barriers identified by promoters

The first barriers mentioned by promoters are related to various aspects of the regulatory frameworks. In some cases these stem from a lack of implementation of European regulation preventing a well-functioning market which is a major prerequisite for investment decisions. In other cases, some national frameworks are perceived as excessively focusing on the reduction of the regulated tariff, not recog- nizing the economic benefits of further market integration and therefore granting unsufficient rate of return. The second group of barriers stems from a short term focus of the market which is not providing sufficient financial commitment. This is a result of the combination of an unfavourable economic environment with regulation, which is nowadays favour- ing the short term perspective. This can result in a higher reliance on other solutions,

Ten Year Network Development Plan 2015 | 9