ACER has published a consultancy study on cost-benefit analysis for hydrogen networks

ENTSOG is required to publish a draft cost-benefit analysis (CBA) methodology for hydrogen infrastructure projects, in accordance with Article 11 of the recast Trans-European Networks for Energy (TEN-E) Regulation.

ACER contracted VIS Economic & Energy Consultants to conduct a study to identify recommendations for European Network of Transmission System Operators for Gas’s (ENTSOG’s) future CBA methodology for hydrogen infrastructure.

What are the key findings?

The VIS study:

• Assesses existing CBA documents and technical-economic assessments for hydrogen infrastructure;
• Reviews hydrogen transportation plans and supply/demand targets in selected EU Member States;
• Assesses market and network conditions justifying building hydrogen infrastructure; and
• Provides recommendations to ENTSOG for a CBA methodology for hydrogen infrastructure consistent with CBA methodologies used for other types of energy infrastructure projects.

The recommendations have been clustered into four thematic groups:

The main findings of this study were presented during the ACER webinar on 14 April 2023.

What are the next steps?

• ENTSOG’s CBA methodology will first be used for the development of the European wide ten-year network development plan (TYNDP) 2024 and the following selection process of Projects of Common Interest (PCI).
• ENTSOG is currently consulting on its preliminary CBA methodology. After concluding the consultation, ENTSOG will adapt its preliminary methodology and submit a draft CBA methodology to ACER, the EU Member States and the European Commission.
• ACER shall provide its Opinion within three months upon ENTSOG’s submission, which is expected in June 2023. This consultancy study provides ideas that ACER will consider for its Opinion. However, the information and the views set out in this study are those of the author (VIS) only and may not, in any circumstances, be regarded as stating ACER’s official position, opinion, or recommendation. ACER does not guarantee the accuracy of the data and the statements contained in the study.

Access the consultancy study about cost-benefit analysis for hydrogen networks.