ACER assesses the draft guideline for cost benefit analysis of electricity grid development projects

08/05/2020

​The Agency published today an Op​inion on the 3rd draft guideline for cost benefit analysis (CBA guideline) of grid development projects, including Projects of Common Interest for trans-European energy infrastructure. The guideline appertains to the proposed methodology by the European Network of Transmission System Operators for Electricity (ENTSO-E), which will be applied to the preparation of the Union-wide ten-year network development plan and is updated and improved regularly.

In addition to allowing the consistent assessment of transmission and storage projects, including potential Projects of Common Interest in the European Union, the CBA guideline is also used to develop Cross Border Cost Allocation decisions of national regulators, and by Transmission System Operators when developing their national project assessment methodologies.

The Agency’s Opinion notes improvements including more transparency, clarity and better analysis of some benefits. However, important shortcomings are identified, such as the need for better alignment with the gas CBA methodology, the need to provide benefit calculations for more study years, the lack of concrete criteria for the construction of the Reference Network, the subjectivity of the assessment of benefits when based on promoters analysis, and the lack of concrete methodologies for the assessment of some benefits.   
The Agency urges ENTSO-E to adapt the draft CBA Guideline so it is in line with the considerations included in the ACER Opinion before submitting it to the European Commission for approval. ​

Access the Opinion her​e​.