Cost-Benefit Analysis and Interlinked Model

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What is it about?

​​​​​​The ENTSOs' Cost-Benefit Analysis (CBA) methodologies should allow a neutral comparison between the costs of infrastructure projects with their expected benefits, in order to inform decision-makers. The CBA methodologies are useful tools for assessing the projects' merits, and therefore guiding the PCIs selection process first; and later the NRAs to take decisions on investment requests and cross-border cost allocation.

The ENTSOs have also presented an interlinked electricity and gas market and network model which should be incorporated as a future part of the CBA methodologies. A truly interlinked model will allow to study the electricity and gas energy system and network development options in a holistic way and capture the interdependencies between both sectors, leading to a more efficient network planning. The implementation of an ambitious interlinked model has gained momentum given that energy sector integration ranks high in the European agenda.​

What's the role of ACER?

​ACER provides Opinions on each draft cost-benefit analysis methodologies developed by the ENTSOs, as well as the interlinked model, and may request the process for CBA updates.​​​​

Unit Investment Cost

​ACER provides a cooperation framework for NRAs to establish and publish a set of indicators and corresponding reference values for the comparison of unit investment costs for projects of gas and electricity infrastructure, which could be used in CBA analysis.​

 

 

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