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.
