On Tuesday 26 September, the European Union Agency for the Cooperation of Energy Regulators (ACER) published its opinion on the draft cost-benefit analysis (CBA) methodology for hydrogen infrastructure put forward by the European Network of Transmission System Operators for Gas (ENTSOG).
This CBA methodology for hydrogen infrastructure projects is required by the TEN-E Regulation (2022) and it must enable the expected costs and benefits of infrastructure projects to be compared “in a clear and impartial manner”.
In its opinion, ACER examines the ENTSOG development and consultation process and assesses whether the draft CBA methodology complies with the TEN-E Regulation and is consistent with other CBA methodologies.
In its recommendations, the Agency concludes that the draft CBA methodology for hydrogen infrastructure projects largely complies with the requirements set out in the TEN-E Regulation.
However, it recommends making the CBA results more understandable to project evaluators by adding examples of the application of the CBA methodology to fictitious hydrogen infrastructure projects, adapting the hydrogen reference networks, strengthening the ‘clustering’ rules and aligning them with the ACER position paper, “while allowing some flexibility in implementation for the next TYNDP 2024”.
It then calls for greater consistency with other CBA methodologies provided for in the TEN-E regulation, improvements to the CBA indicators (particularly in the case of double assessments) and a better assessment of the impact on the security of supply.
“It is appropriate to use different values for disruption costs for natural gas (CoDG) and hydrogen (CoDH)”.
These recommendations must be taken into account by ENTSOG before submitting the adapted project to the European Commission for approval by the end of 2023.
To read ACER’s opinion: https://aeur.eu/f/8r6 (Original version in French by Pauline Denys)