What are the Projects of Common Interest (PCIs)?
Projects of common interest (PCIs) are key cross border infrastructure projects that link the energy systems of EU countries.
They help the EU achieving its energy policy and climate objectives: ensuring affordable, secure, and sustainable energy for all citizens. PCIs also play a key role in the long-term decarbonisation of the economy in accordance with the Paris Agreement.
What is the role of ACER?
Every year ACER reports on the progress of the projects' implementation of the most recent PCI list, adopted by the European Commission.
ACER reports include the projects' current status, delays encountered, implementation plans, reasoning for potential issues occurred, costs and benefits, as well as any related technical data.
Opinions on draft PCI lists
Before the adoption of the draft PCI lists proposed by the European Commission, ACER provides an Opinion assessing the consistency of the selection criteria applied and the cost-benefit analysis across regions.
According to the Regulation on guidelines for trans-European energy infrastructure, ACER recommends on a common methodology to evaluate the potentially higher risks connected with the PCIs, as well as the incentives to be provided.
What are ACER's recommendations?
ACER considers that incentives should aim at mitigating risk (or at providing adequate compensation for it) especially when such risk could cause project promoters and/or investors not to invest or to delay their investment decisions.
ACER encourages an objective treatment of risk based on a sound evaluation of the probability of negative outcomes, if this is quantifiable, and of the damage resulting from their materialisation. Such evaluation should primarily be addressed from the perspective of project promoters and network users, aiming to determine who is best placed to bear the risk and what regulatory tool fits each kind of risk.
Risks should consider the results of a cost-benefit analysis, particularly the regional or Union-wide positive externalities generated by the project. Incentives should be commensurate with the level of risk faced by the project promoters.
ACER finds also important to reflect on incentives in a broader context, when designing incentives.