ENTSOG TYNDP 2017 - Main Report

6.1 General consideration on assessment results

ENTSOG has carried out an extensive assessment of the European gas system in order to identify potential investment needs and how projects submitted to TYNDP help to mitigate these needs. This TYNDP was developed applying the Energy-System Wide Cost Benefit Analysis (CBA) methodology   1) that was ap- proved by the European Commission in February 2015. This assessment represents the TYNDP-Step of the Energy System-Wide CBA (ESW-CBA) and as such it focuses on different levels of infrastructure develop- ment rather than on single projects. In preparation to the individual assessment of PCI candidates, which will take place outside of TYNDP as part of the 3  rd PCI selection process, the report focuses on the Low and Advanced Infrastructure levels. A specific section of the assessment chapter is dedicated to the analysis of the 2  nd PCI list Infrastructure level. It gives a view of the overall impact of the current list of Projects of Common Interest from the 2  nd PCI selection in 2015   2) . The results of the assessment have been structured to have a strong alignment with both the third energy package and the TEN-E regulation. In particular the identifica- tion of investment gaps, notably with respect to cross-border capacities, is under- stood as the assessment of the low infrastructure level. The first section of this chap- ter is specifically dedicated to this assessment. The low infrastructure level is based mainly on the currently existing gas infrastructure, complemented by the FID projects for which realisation is considered almost certain. The assessment of the investment needs is presented before the European system-wide costs and benefits, stemming from the infrastructure projects in the advanced infrastructure level. In both parts, the infrastructure levels are evaluated towards the market integration and operability, competition, security of gas supply and sustainability. The benefits from the 2 nd PCI list are shown through the assess- ment of the 2 nd -PCI list infrastructure level. The assessment is made in accordance with the above mentioned CBA methodolo- gy. However, based on stakeholders’ feedback, ENTSOG has enlarged this TYNDP assessment scope on a voluntary basis, in particular by proposing further monetisa- tion. For this edition, an EU-wide approach to value of lost load is proposed, based on the recent years’ ratio between the EU-28 gross domestic production and gross inland consumption. This approach allows a valuation of cases where high demand simulations lead to identifying a demand disruption risk. This TYNDP also introduc- es the Import Price Spread configuration. It shows the benefits of infrastructure for

 1) http://entsog.eu/public/uploads/files/publications/CBA/2015/INV0175-150213_Adapted_ESW-CBA_Methodology.pdf  2) https://ec.europa.eu/energy/en/topics/infrastructure/projects-common-interest

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