1. FSR Regulatory Policy Workshop Series 2014-2015
CBA and CBCA Methodologies for Projects of Common Interest
Workshop Director: Alberto Pototschnig | Florence School of Regulation/EUI
Coordinator: Hugo Gil | Florence School of Regulation/EUI
Villa Finaly – Via Bolognese 134R – Firenze
24 October 2014
■ Overview
The European Union has been working for many years towards the creation of a single European
internal energy market and the removal of“energy islands”. Target dates for these policy goals – 2014
and 2015, respectively – were set by the European Council in February 2011 and reaffirmed several
times afterwards. These goals call for an increased physical integration of national electricity and gas
systems.
The 2009 Third Energy Package introduced a stronger EU dimension in energy network planning, by
mandating the newly-established European Networks of Transmission System Operators (ENTSOs)
for Electricity and Gas to develop, every two years, EU-wide Ten-Year Network Development Plans
(TYNDP) which, while not binding, represent a reference for the development of national network
development plans. More recently, Regulation (EU) No 347/2013 on guidelines for trans-European
energy infrastructure (the “TEN-E Regulation”) promotes the efficient and timely development of
energy networks in priority corridors and areas. It envisages the identification of Projects of Common
Interest (PCIs) which will benefit from a streamlined permitting procedure and, possibly, financial
support.
PCIs are identified as those which contribute the most to the integration of national energy systems
and deliver the greatest benefits, inter alia, in terms of competition, security of supply and the
integration of renewable energy sources. Following the entry into force of the TEN-E Regulation in
May 2013, the first EU-wide PCI list was adopted in October 2013. At the same time the ENTSOs
are developing methodologies for the Cost-Benefit Analysis (CBA) to be performed on individual
projects and to the TYNDP as whole. In November 2013 these methodologies were presented to the
ACER which provided its opinion to the European Commission in February 2014. Moreover, according
to the TEN-E Regulation, the costs for the development, construction, operation and maintenance of
PCIs should in general be fully borne by the users of the infrastructure. Therefore PCIs are eligible for

2. cross-border cost allocation (CBCA), through which PCIS costs are shared among different jurisdictions
benefitting from the project.
The first investment requests, including for a CBCA, for PCIs included in the first EU-wide list were
submitted by project promoters in October 2013. They are to be decided by the National Regulatory
Authorities (NRAs) of the concerned jurisdictions. However, if these NRAs are unable to reach a common
position within six months, or upon their joint request, the decision is taken by the Agency.
In September 2013 the Agency issued a Recommendation on the treatment of CBCA requests. A number
of investment requests have already been decided by NRAs and one from the Agency.
InMarch2013,aheadoftheadoptionoftheTEN-ERegulation,theFlorenceSchoolofRegulationorganised
aWorkshop on“Cost-Benefit Analysis in the Context of the Assessment of Energy Infrastructure Projects”.
Now, one and a half year later, and after the first PCI selection round, including the CBCA decisions, is
substantially concluded, this Workshop aims at discussing the methodologies currently proposed and
used for CBA and CBCA as well as at reviewing how these methodologies have been used by project
promoters and regulators.
The Workshop will be structured in two sessions. Session I will focus on methodological issues and will
be opened by a presentation of the FSR research on CBA and CBCA. Session II will aim at discussing how
the methodologies have been implemented in the assessment of PCIs and in CBCA decisions.
■ Programme
08.45 - 09.00 Welcome address
09.00 - 09.10 Introduction to the Workshop
SESSION 1 METHODOLOGICAL ASPECTS
Chair: Alberto Pototschnig | FSR/EUI and ACER
09.10 - 09.40 Cost-benefit Analysis and Cross-border Cost Allocation for Energy Infrastructure Projects:
The Academic Perspective
Leonardo Meeus | FSR/EUI and Vlerick Business School
Nico Keyaerts | FSR/EUI
09.40 - 10.40 ENTSO-E’s and ENTSOG’s CBA Methodologies
Robert Schroeder | ENTSO-E
Olivier Lebois | ENTSO-G
10.40 - 11.10 Coffee break
11.10 - 11.35 ACER’s CBCA Approach
Riccardo Vailati | ACER
11.35 - 12.00 The European Commission Perspective
Catharina Sikow-Magny | European Commission
12.00 - 12.30 General discussion
12.30 - 13.50 Lunch Break

3. SESSION 2 IMPLEMENTING CBCAS: A REVIEW OF RECENT DECISIONS
Chair: Leonardo Meeus | FSR/EUI and Vlerick Business School
13.50 - 14.00 Session introduction
Leonardo Meeus
14.00 - 14.20 Shannon - Gaslink Pipeline & South West Scotland Onshore System
Keith Burwell | Ofgem
14.20 - 14.40 Stork II Interconnector Czech Republic - Poland
Martin Šik | ERU
14.40 - 15.00 Val de Saône Gas Project France - Spain
Benoît Esnault | CRE
15.00 - 15.20 Gas Interconnector Poland - Lithuania
Dennis Hesseling | ACER
15.20 - 15.50 General discussion
15.50 - 16.00 Conclusions
■ Speakers
Keith Burwell Senior Economist, Ofgem, United Kingdom
Benoît Esnault Head of European Gas Industry Department, Commission de Régulation de
l’Energie, France
Dennis Hesseling Head of Gas Department, ACER, Slovenia
Nico Keyaerts Research Fellow, Florence School of Regulation/EUI, Italy
Olivier Lebois Business Area Manager, System Development, ENTSO-G, Belgium
Leonardo Meeus Part-time Professor, Florence School of Regulation, Italy and
Associate Professor, Vlerick Business School, Belgium
Alberto Pototschnig Senior Advisor, Florence School of Regulation/EUI and
Director, ACER, Slovenia
Robert Schroeder Manager System Development, ENTSO-E, Belgium
Martin Šik Regulation Section, Energy Regulatory Office, Czech Republic
Catharina Sikow-Magny Head of Unit, European Commission, Belgium
Riccardo Vailati TSO Cooperation Officer - Team leader, ACER, Slovenia

4. ■ Participants
George Antonopoulos Electrical Systems Specialist, Electricity Networks Department, Regulatory
Authority for Energy (RAE), Greece
Sergio Ascari Adviser, Florence School of Regulation/EUI, Italy and
Energy Economist & Consultant, REF-E, Italy
Elias Azzam Senior Economist, Public Utility Authority - Electricity, Israel
Marina Bartolozzi Instututional Affairs, Terna, Italy
Anthony Bende-Nabende Senior Analyst, Ofgem, United Kingdom
Juan Benzal Energy Planning Subdirector, Gas Natural Fenosa, Spain
Annika Björklid Legal Adviser, Swedish Energy Markets Inspectorates, Sweden
Andrea Caizzi Official, Aeegsi, Italy
Rosj Camarda Regulatory Affairs, Edison SpA, Italy
Francesco Careri Researcher, RSE SpA, Italy
Fiorenza Carraro European Regulatory Affairs Unit, Aeegsi, Italy
Darcelle Caruana Smith Analyst (Economist), Malta Resources Authority, Malta
Carsten Chachah Senior Advisor, Danish Energy Association, Denmark
Serban Coculescu Expert, Roamanian Energy Regulatory Authority, Romania
Ana Lucia de Jesus Costa Technical Expert, Erse, Portugal
Lewis Dale Regulatory Strategy Manager, National Grid, United Kingdom
Maria Angeles de Vicente Regulatory Development, Enagas, Spain
Tilemahos Efthimiadis Scientific / Technical Project Manager, Joint Research Centre, European
Commission the Netherlands
Ettore Elia Planning Manager, Terna SpA Network, Italy
José Carlos Fernández Department of Regulation and Studies, Red Eléctrica, Spain
Joerg Frantzen Member of Ruling Chamber 4, Bundesnetzagentur, Germany
Riccardo Galletta Research Assistant, Florence School of Regulation/EUI, Italy
Hugo Gil Research Fellow and Coordinator, Florence School of Regulation/EUI, Italy
Jean-Michel Glachant Director, Florence School of Regulation/EUI,
and Holder of the Loyola de Palacio Chair/Florence School of Regulation/EUI, Italy
Annegret Groebel Head of Department, BNetzA, Germany
Carl-Petter Haugland Department Manager, Statnett Sf, Norway
Göran Heldesten Legal Adviser, Swedish Energy Markets Inspectorate, Sweden
Arthur Henriot Research Fellow, EUI, Italy
Dennis Hesseling Head of Gas Department, ACER, Slovenia
Akos Hofstadter Regulation Officer, Agency for the Cooperation of Energy Regulators
Infrastructure, Slovenia
Silvia Ibba System Development Planner, Terna SpA - National Transmission Sysytem
Operator, Italy
Andreja Jerina National Coordinator, Ministry for Foreign Affairs, Slovenia
Menahem Kamish Head of Economics Division, Israeli Public Utility Authority, Israel
Johan Leymann Analyst, Swedish Energy Markets Inspectorate, Sweden

5. Ilze Liepina Senior Expert, Department of Energy, Gas Division, Public Utilities Commission
of Latvia, Latvia
Luca Lo Schiavo Deputy Director, Aeegsi Italian Nra, Italy
Pia Løvengreen Alessi Research Assistant, Florence School of Regulation/EUI, Italy
Anna Maggioni Assistant to Board, Aeeg, Italy
Bertine Markvoort Regulation Management, Gasunie Deutschland Services GmbH, Germany
Chiara Marricchi EU Regulatory Analyst, Enel, Italy
Hélder milheiras Engineer, Erse, Portugal
Nicholas Morris Commercial Manager, National Grid Grain Lng, United Kingdom
Vasileios Panousopoulos Economist and International Affairs Expert (Scientific staff), Regulatory Authority
for Energy, Greece
Konstantinos Perrakis SNE Electricity Department, ACER, Slovenia
Claudia Pöstinger Key Account Manager, Gas Connect Austria, Austria
Kristin Rasdal Higher Executive Officer, Norwegian Ministry of Petroleum and Energy, Norway
Vande Zande Roxanne European Regulatory & Public Affairs Advisor, Elia System Operator, Belgium
Emmanouil Santorinios Infrastructure Regulation Officer in the Electricity Department, ACER, Slovenia
Adrienn Selei Research Associate, Regional Centre for Energy Policy Research, Hungary
Siri Steinnes Directorate Senior Adviser, Norwegian Water Resources and Energy, Norway
Fredrik Styrlander Lawyer, Swedish Energy Markets Inspectorate, Sweden
Borbála Takácsné Senior Researcher, Tóth Rekk, Hungary
Fabio Talenti Head of Technical Department, Infrastrutture Trasporto Gas SpA, Italy
Benoît Van’t Hoff Financial & Regulation Analyst - Project Manager, RTE, France
Corinne Theveniau Financial and Regulation Analyst, RTE, France
Juan López Vaquero Infrastructure Officer, ACER, Slovenia
Valeria Vascellari Unit Technical and Economic Evaluations and Reporting of NDP, Terna, Italy
Giorgio Vitali Regulatory Analyst, Enel SpA, Italy
Annika Zorn Coordinator, Florence School of Regulation/EUI, Italy