Gas Regional Initiative – North West Region

Investment workshop The Hague – 4 June 2010

Investment Project

Regional Investment PlansIntroduction to methodology

Benoît Esnault, CREInvestment project vice-chair

2 Investment workshopThe Hague – 4 June, 2010

Why involving GRI NW in regional investment plans?

The 3rd package will enter into force on March 3, 2011 Regional investment plans will have to be developed

starting next year The North West region is the core part of the EU gas

market Regional plans are part of other GRIs work programme Still many open questions

Content of the regional plans

Who will be responsible for what?

Size of the regions

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Agenda for discussion on the scope of regional investment plans

Project based on GRI NW experience with investment Proposed scope for the GRI NW project

Scope and objectives of the plans

Contents

Drafting methodology

Possible informal views out of direct scope on roles, timing, etc.

Discussion paper prepared for the workshopLegal background

Elements from ERGEG recommendations on TYNDP

Questions and challenges

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Legal background

Regional investment plansTSOs shall establish a regional cooperation within ENTSOG

(Article 12, Regulation n°715/2009)

TSOs shall publish a regional investment plan every two years, and may take investment decisions based on that regional plan (Article 12, Regulation n°715/2009)

The Community wide TYNDP shall build on national investment plans, taking into account regional investment plans (Article 8 – Regulation n°715/2009)

The Agency shall monitor the regional cooperation of TSOs referred to in Article 12 of Regulation (EC) No 715/2009, and take due account of the outcome of that cooperation when formulating its opinions, recommendations and decisions.

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Questions and challenges

On scope and responsibilities

•Perimeter of regions?

•Breakdown of roles between ENTSOG and its members, between NRAs, RCC and ACER

On the content and methodology

•Level of details on project description

•To what extent should gas system’s behaviour be investigated?

•Regional simulations of supply crises?

•Develop on the provisions of the security of supply regulation (infrastructure standards for instance)

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Possible approaches

Elements from ERGEG recommendations on the Community-wide TYNDP

•Combination of top-down and bottom-up

•Network modeling including crisis simulations

•Selection of demand and supply scenarios

•Dialogue with stakeholders

Regional plans could be either

•An extract from Community-wide plans including modelling and security of supply simulations

•Or an extension of national plans focusing on cross-border TSO cooperation and integration of national markets

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Potential value added of regional plans

The identification of infrastructure and investment gaps;

Description and understanding of cross border congestions;

Better address the relation between infrastructure and market integration in order to have an accurate diagnosis about investment needs;

Ensure a consistent design for cross-border projects.

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Role of the NW region and next steps

Get stakeholders’ views on

•Excpectations from market players

•Potential difficulties

Bring proposals to the EU level without duplication of work

•ERGEG and ENTSOG work on regional plans

•Communicate with the Commission

•Build upon the region’s specific experience regarding market integration

Next steps

•Discussion paper including concrete proposals by September