ENTSOG Opens Consultation Process

European decision-makers should send appropriate signals to the market to promote investments and avoid further delays that could leave the Continent unprepared to cope with the growing dependency on gas imports, said the European Networks of Transmission System Operators for Gas (ENTSOG) on Monday. 

According to the Ten Year Network Development Plan (TYNDP) report, construction works are normally on time. On the other hand, the Final Investment Decision for many projects have been postponed on barriers related to regulatory frameworks. 

‘In some cases these stem from a lack of implementation of European regulation preventing a well-functioning market which is a major prerequisite for investment decisions. In other cases, some national frameworks are perceived as excessively focusing on the reduction of the regulated tariff, not recognizing the economic benefits of further market integration and therefore granting unsufficient rate of return’ reads the report. 

While saying that over the next two decades the evolution of European gas demand is ‘likely to be driven mostly by the use of gas in the power generation sector’, ENTSOG confirmed there are projects that would increase energy security across Europe. 

‘As in previous editions, this TYNDP confirms that market integration in Europe can be achieved if necessary projects are decided. From a regulatory perspective, such decisions will require a full and timely implementation of European regulation taking into consideration the economic benefit of well-developed infrastructures.’ 

On Monday, the organisation also opened a three-month consultation process, which will lead it to the final document to be submitted to ACER.

In an analysis published in November 2014, ENTSOG said that there are no countries set to experience a decreased interconnection with their neighbours in the next 5 years. The only exception comes from a possible decline in capacity from Slovakia to Czech Republic.