ACER reports on specific incentives for higher risk trans-European energy infrastructure projects
The Agency publishes today its “Summary Report on practices in the application of project-specific risk-based incentives" on the basis of the EU Regulation on guidelines for trans-European energy infrastructure. This regulatory tool aims to ensure that appropriate incentives are granted to those projects of common interest (PCI) which incur higher risks compared to the risks normally incurred by a comparable project.
The Agency observes that six requests have been made by PCI promoters for this type of incentives - two in electricity, four in gas - since 2013. One electricity request in the Netherlands and three gas requests - one in Slovakia and two in Lithuania - led to the granting of project-specific risk-based incentives such as higher allowance for operational expenditures, minimum guaranteed revenue, ex-ante cost inclusion, among others.
The Agency underlines that the project-specific risk-based incentive schemes have to be read in conjunction with the risk and reward balance that is offered to project promoters through the respective general national regulatory frameworks.
The Report is available here.