Cost-Benefit Analysis

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A joint EU-wide methodology for cost benefit analysis

​​​​​​​​​​​​​The Regulation on guidelines for trans-European energy infrastructure ('TEN-E Regulation') introduced the novelty of a joint EU-wide methodology for cost benefit analysis (CBA) of projects included in the future Ten Year Network Development Plans (TYNDP), and for selecting the Projects of Common Interest (PCIs) at European level. 

The Regulation also foresees the use of this methodology for deciding on the cost allocation of cross-border infrastructure projects (CBCA). The CBA methodology is developed and improved over time by ENTSO-E and is approved by the European Commission. ​

What's the role of ACER?

​Whenever an updated CBA methodology is proposed by ENTSO-E, ACER provides an opinion on ENTSO-E's draft methodology to the European Commission and the Member States. ​

What does ACER say?

​In its latest Opinion, ACER notes improvements regarding transparency, clarity and a more effective analysis of some benefits. However, important shortcomings are also 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.

ACER urges ENTSO-E to adapt the draft CBA Guideline in line with the considerations included in its Opinion before submitting it to the European Commission for approval. ​​

 

 

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