Public workshop: CBA 3.0 –come and improve with us the transmission and storage assessment methodology Brussels 07 November 2017

Organisation of the workshop

Organisation of the workshop

Purpose of the workshop Why start CBA 3 with a public workshop? Good experience including „external“ parties in the CBA 2 process For CBA 3: starting from the very beginning with help of external experts Defining together the way of working and core indicators Purpose of this workshop To bring all the parties to the same level of knowledge To define the core issues To organise the future work on CBA 3

2nd CBA guideline – indicator overview

2nd CBA guideline – Storage projects Storage is a main part of CBA Principle: no discrimination between storage and transmission Changes since CBA 1 Storage is moved from annex to chapter Improved consistency in computation of storage/transmission System flexibility indicator: ‘tailor- made’ computation for storage projects

Internal projects Challenges Changes since CBA 1 Benefits of internal projects with small impact on cross-border flows are underestimated, because internal congestions are not taken into account included a separate section on internal projects considering internal congestions using redispatch simulations using fictive market areas (for modelling purpose only)

B1. Socio-economic welfare Variation in variable cost of generation (generation cost savings) cheaper units are made available by transmission projects reduction of marginal cost (prices) difference decreasing overall system costs Partly included in B1 (SEW): reduced generation costs due to renewables with zero marginal costs reduced generation costs due to reduced CO2 emissions Indicator directly given as monetary value

RES integration benefits B2. RES integration Separately reported as one of the EU 20-20-20 targets Monetary value partly included in B1 reduced costs due to RES integration Additional value (no double counting) RES integration benefits included in B1 additional value given in € under B1 as generation cost savings qualitative indicator Improvements development of concepts for monetising the additional value

B3. Variation in CO2 emissions Separately reported as one of the EU 20-20-20 targets Monetary value partly included in B1 reduced costs due to RES integration Additional value (no double counting) CO2 variation benefits included in B1 additional value given in € under B1 as generation cost savings (due to emission-cost component in generation costs) qualitative indicator Improvements development of concepts for monetising the additional value

B4. Variation in losses Changes since CBA 1 New projects change the network topology and flows, resulting in a change in losses Projects may decrease or increase losses! Changes since CBA 1 Mandatory monetization of losses Calculation of losses should be representative for pan-European system

B5/B6/B7: Security of supply 2nd CBA methodology introduces a new indicator structure for security of supply Old security of supply-related indicators: B1: security of supply B6: technical resilience B7: robustness/flexibility

B5. Additional adequacy margin Variation in energy not served (ENS; in [MWh / yr]) Monetisation based on VOLL Additional adequacy margin (in [MW]): Pmax,A Pmax,B

B6. System flexibility Contribution of transmission capacity to enhance the ability of the system to deal with increased ramping requirements

B6. System flexibility (continued) The maximum hourly ramp of residual load (maximum absolute value in MW at the 99.9 percentile in respective time series) R0,max; The existing GTC value in MW given as GTCold; The remaining maximum hourly ramp of residual load (equal to maximum hourly ramp of residual load – existing GTC) defined as 𝑅 𝑟,𝑚𝑎𝑥 = 𝑅 0,𝑚𝑎𝑥 − 𝐺𝑇𝐶 𝑜𝑙𝑑 ∆GTC for the new project .

B7. System stability Element Transient Stability Voltage Stability Frequency Stability New AC line ++ New HVDC + (between sync areas) AC line series compensation + AC line high temperature conductor / conductor replacement (e.g. duplex to triplex) - AC line Dynamic Line Rating MSC/MSR (Mechanically Switched Capacitors/Reactors) SVC STATCOM Synchronous condenser -: Adverse effect: the technology/project has a negative impact on the respective indicator. 0: No change: the technology/project has no (or just marginal) impact on the respective indicator. +: Small to moderate improvement: the technology/project has only a small impact on the respective indicator. ++: Significant improvement: the technology/project has a big impact on the respective indicator. N/A: Not relevant: if a particular project is located in a region where the respective indicator is seen as not relevant, this should also be highlighted by reporting N/A.

CBA 3.0 contect and expectations Why do we need a 3rd CBA guideline? To take into account the feedback To look at how we can broaden the CBA benefits *why not already covered in CBA 2?* long approval process (with tight time tables) CO2 variation benefits included in B1 additional value given in € under B1 as generation cost savings (due to emission-cost component in generation costs) qualitative indicator Benefits due to reduced congestion: included in CBA 2 for internal projects what about the CB?

Timeline for CBA 3 for TYNDP 2020 2017 end November – end May 2018 developing and drafting the new methodology together with the stakeholders 2018 June final version for public consultation 2018 June – September public consultation of the draft CBA 3.0 2018 September – October ENTSO-E updates the methodology in line with the stakeholders comments 2018 December start of official approval process by sending the CBA 3.0 to ACER 2019 March ACER delivers its opinion to ENTSO-E and EC 2019 June EC releases its official opinion 2019 November CBA 3.0 official approval by the EC. 2020 January application of CBA 3.0 to the TYNDP 2020.

What has to be discussed? Defining the most important improvements capturing more benefit indicators improving „critical“ indicators (e.g. SEW, SoS, Storage projects)

What has to be „decided“? main improvements we have to concentrate on how we want to work together defining a time table and TORs next steps