The EU Energy Infrastructure Forum Conclusions of the fifth meeting in Copenhagen on May 24-25 , 2019 pointed out clearly ” the necessity to speed up in the implementation of
needed electricity transmission projects. The Forum agrees that the current CBA methodology may not sufficiently capture the benefits stemming from the timely implementation of the projects. The Forum asks ENTSO-E, ACER, RGI and relevant stakeholders to work together to complement the CBA methodology to be used at the national and European level. The Forum invites the Commission to organise roundtables with ACER, TSOs, RGI and National Competent Authorities [one-stop shops] to further elaborate on the regulatory conditions and the timely implementation of projects. The outcomes are to be presented during the 2020 Forum.” This will be an excellent forum to present the outcomes of the CBA modelling in the TSO2020 project.

Director Klaus Dieter Borchard of DG ENER mentioned that on May 22, 2019 , the Council of ministers of the EU formally adopted  Internal market directive and regulation, concluding the remaining elements of the Clean energy for all Europeans package and represents a major step towards completing the Energy Union, delivering on the priorities of the Juncker Commission.Council has adopted Also the Governance regulation has been set: all 28  drafts of the National Energy and Climate Plans (NECP) however , not a single one is on a pathway to reach net-zero emission by 2050, according to a fresh  study commissioned by the European Climate Foundation and conducted by the Ecologic Institute in Germany and Climact, a Belgium-based engineering consultancy published on May 16, 2019. Only Spain is the only EU country holding its head above water, scoring 52% across a range of indicators comprising the overall carbon reduction goal, the level of detail of proposed policy measures and the inclusiveness of the drafting process.

All the other plans score below 50%, according to the study commissioned by the European Climate Foundation and conducted by the Ecologic Institute in Germany and Climact, a Belgium-based engineering consultancy.

The EU Commission in November 2018 has issued long term strategy for 2050: not setting new targets but direction to decarbonization by 2050. More than 2bln euro’s will be needed by 2030 (30 % more than 2010 -2020 budget) , private investment is needed. Multiannual Financial Framework is in place new EU Commission will decide on finl budgets. there: CEF is still accelerating implementing Transnational Projects of common Interst, new is the20% cross border cooperation on Renewable Energy not only electricity!  Mr. Borchard mentioend the key role of hydrogen to mobilize the wind potential on particularly the North Sea. Two parallel topics are key for gas infrastructure investment as “past practice of CEF gas projects is over”:

  1. optimize existing gas infrastrucuture
  2. develop focussed infrastructure for sector coupling including CCS and CCU.

The 12ooTWh of potential gas storage in current networks , according to the Florence School of Regulation could be a wonderful asset  Like transmission pipelines, gas storage activities have been vertically integrated with gas supply and generation activities before the Third Energy Regulatory Package was adopted in 2009;  the two activities have now been  separated –  and “unbundling” has almost been completed in all Memebr States. For example in  Italy the main operator Storage System Operators (SSOs), Stogit is part of the publicly owned SNAM Retegas (the gas TSO) while Edison Stoccaggio or Italgas are privately owned like many of the SSO in other countries.

According to the Florence School the gas storage paradox, on  the one hand, the value of storage was demonstrated by the high prices during last year’s  ‘Beast from the East’, on the other hand there is no incentive for operators to store gas when prices are low. For example the summer and winter price spread at the TTF hub in the Netherlands used to go up to €10 or €12 in 2006-2007. Last year, it was around €2.

These issues could be addressed by a new CBA model as well.