Cost-Benefit Analysis and the Integrated Model

Under the Trans-European Energy Infrastructure (TEN-E) Regulation, the ENTSOs’ Cost-Benefit Analysis (CBA) methodologies aim to ensure a transparent and neutral comparison between the costs of infrastructure projects and their expected benefits. They support the selection of Projects of Common Interest (PCIs) and inform national regulatory authorities’ decisions on investment requests and cross-border cost allocation.

ENTSO-E and ENTSOG are also required to establish and progressively implement a consistent and integrated model as part of their system needs assessment and CBA methodologies. This integrated model for electricity, gas and hydrogen network planning should support both cross-sectoral infrastructure needs assessment at system level and project-specific CBAs. By improving consistency of assumptions and methodologies and better capturing interactions between sectors, it helps contribute to more coherent and cost-effective EU network planning.

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.​​​​

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.​