ENTSOG Tariff NC - Implementation Document 2nd Edition

Overview of Incremental Process

INCREMENTAL PROCESS IN THE AMENDED CAM NC

Responsibility: TSO/NRA responsibility: TSOs submit the project proposal to NRAs; NRAs take and publish coordinated decisions on the project proposal

The incremental process introduced by the Amended CAM NC is a standardised procedure for market participants to indicate in a non-binding way their demand, to allocate incremental capacity. ‘Incremental capacity’ covers a capacity increase at an existing IP, the installation of a physical reverse flow at an IP that has not been offered before, or capacity at a new IP. The incremental process is a standardised process ensuring a general level of cross-border coordination between TSOs and NRAs, which serves to establish the economic viability of an incremental capacity project. Incremental and existing capacity must be offered jointly in the annual yearly capacity auction by default or, under certain conditions, pursuant to an alternative allocation mechanism. An alter- native allocation mechanism may apply if the default mechanism of auction is not appropriate, and if certain conditions are met. It is possible to adjust the tariff by applying a mandatory minimum premium in case the sole application of a reference price cannot guarantee the economic viability of an incremental project. Figure 38 describes the incremental process in general, while Figure 39 provides a more detailed overview. In 2017 the first market demand assessment for incremental capacity must be conducted as from the entry into force of the Amended CAM NC. In the following years, the market demand assessment begins immediately after the start of the annual yearly capacity auctions.

TAR NC Implementation Document – Second Edition September 2017 | 143