Projects of Common Interest 2018 - 2019 Meeting of TEN-E cross - Regional Group on electricity DG ENER, Networks & Régional Initiatives https://webcast.ec.europa.eu/pci-electricity

Time Topic Speaker 10:00-10:15 Introduction Klaus-Dieter Borchardt DG ENER, Director – Internal Energy Market 10:15-10:35 Projects of Common Interest (PCI) legal framework – brief overview Catharina Sikow-Magny DG ENER – Head of Unit B1   10:35-11:20 PCI process (2018 – 2019) Regional group leaders: Nicole Versijp - RG NSOG leader Tomasz Jerzyniak - RG NSI West Electricity leader Epistimi Oikonomopoulou & Miklos Gaspar - RG NSI East Electricity leaders Oana Langa - RG BEMIP leader Thematic area - Smart grids leaders: Henriette Nesheim & Annachiara Vercellin Nicole Versijp DG ENER – B1 Unit Team leader 11:20-12:20 Monitoring role in the PCI process: ACER 2018 monitoring outcomes Monitoring inclusion in the current PCI process - principles Emmanouil Santorinaios ACER - Policy Officer - Infrastructure Electricity Department

12:20-14:00 Lunch break   14:00-14:45 TYNDP 2018 : process, scenarios and European needs identified Dimitrios Chaniotis ENTSO-E System Development Committee chairperson 14:45-15:45 Working together: roles and responsibilities Irina Mihaela Minciuna DG ENER – B1 Unit Policy Officer 15:45-16:00 Next steps Catharina Sikow-Magny DG ENER – Head of Unit B1

Projects of Common Interest Legal framework

Trans-European energy networks are at the heart of the European energy policy TEN-E Regulation (347/2013) - addressing infrastructure needs in a comprehensive way An integrated European energy network is THE key enabler to achieve the European energy and climate policy objectives. COMPETITIVE-NESS SECURITY OF SUPPLY SUSTAINABILITY

Electricity infrastructure consist of: Transmission (a) for electricity transmission, the project increases the grid transfer capacity, or the capacity available for commercial flows, at the border of that Member State with one or several other Member States, or at any other relevant cross-section of the same transmission corridor having the effect of increasing this cross-border grid transfer capacity, by at least 500 Megawatt compared to the situation without commissioning of the project; Storage (b) for electricity storage, the project provides at least 225 MW installed capacity and has a storage capacity that allows a net annual electricity generation of 250 Gigawatt-hours/year; Smart grids for smart grids, the project is designed for equipment and installations at high-voltage and medium-voltage level designed for a voltage of 10 kV or more. It involves transmission and distribution system operators from at least two Member States, which cover at least 50 000 users that generate or consume electricity or do both in a consumption area of at least 300 Gigawatt hours/year, of which at least 20 % originate from renewable resources that are variable in nature.

Project of Common Interest Benefits CO2 transport E-highways Smart grids Criteria / CBA Regional cooperation & High Level Groups Union List of PCIs Accelerated permit granting Regulatory measures EU financial assistance 7

Accelerated permit granting EU financial assistance Union List of PCIs Accelerated permit granting Regulatory measures EU financial assistance

Permit granting – Regime of common interest Competent Authority to manage permit granting process 3,5 years time limit for the permit granting decision Increased transparency and enhanced public participation Priority status for PCIs Most preferential treatment in Member States Streaming of Environmental assessment procedures

EU financial assistance Union List of PCIs Accelerated permit granting Regulatory measures EU financial assistance

Regulatory framework - measures Energy system-wide cost-benefit analysis – equal footing for all network elements Enabling investments with cross-border impact: Cross-border cost allocation (CBCA) NRA joint decision on investments and cost allocation ACER decision if no agreement Long-term incentives for investment: Obligation on NRAs to grant appropriate risk-related incentives ACER guidance on best practices of NRAs and methodology

Union List of PCIs Accelerated permit granting Regulatory measures EU financial assistance Structural Funds, EIB, EFSI, Marguerite Fund, EBRD CEF Regulation 1361/2013 with 5.35bn;

Promoters obligation Submit an annual report on progress achieved, delays registered – to ACER (reporting by 31 March) Draw up an implementation plan including a timetable for the major milestones of a project (Art 5(1)) - Transparency platform Keeping project websites up-to-date (Art 9(7)) Sharing information within Regional Groups TEN-E Regulation introduces BENEFITS for PCIs but also certain obligations on PCI promoters Your project (indeed) But part of a (common) network Delays may trigger call for proposals for an alternative project promoter - Art 5(7)(d)

Projects of Common Interest (PCI) Process

2018-2019 PCI process electricity Regional system needs assessment Project submission Jan/Feb 19 May June ACER opinion Sept Oct Final 4th PCI list Electricity 3 Oct Nov’18 Public project consultation NRAs project consultation March Methodology for assessing the electricity PCI project & application Technical Decision Making Body meeting approval of the draft RG PCI lists High level Decision Making Body meeting Cross regional meeting Regional meeting Technical and High Level Decision Making Body meeting

Step 1: Identification of system needs for 2030 Objective: identify the most relevant needs within the region for which further infrastructure development is necessary Input: largely based on the ENTSO-E TYNDP data Regional groups are responsible for defining the needs of the priority corridors Output: agreed needs of the priority corridors.

Step 2: Projects submission Objective: collect the candidate PCI projects Input: TYNDP 2018 projects can apply Project promoters submit their project/s for the PCI selection in line with the Commission guidance. Submission tool: ENTSO-E tool developed in line with the Commission requirements. Note: The Commission is in charge of the submission process, not ENTSO-E Output: list of candidate PCI projects Submission window: 15 October - 15 November

Step 3.1: Public consultation on candidate projects Objective: collect public views on the candidate PCI projects Input: TYNDP 2018 project sheets + ACER monitoring outcomes + information submitted in the PCI submission window Stakeholders & citizens are invited to submit their views on the projects. Consultation tool: The EUSurvey tool will be used for this purpose. Output: public views per projects summed up in the report on public consultation. These views will be considered by the Regional Groups.

Step 3.2: National Regulatory Authorities projects consultation Objective: collect the NRAs views on the candidate PCI projects Input: TYNDP 2018 project sheets + ACER monitoring outcomes + information submitted in the PCI submission window NRAs submit their views on all the projects from their national territory. Consultation tool: ACER survey tool will be used for this purpose. Output: NRAs view per projects, views that will be used by the Regional Groups.

Step 4: Define methodology and assess the candidate PCI projects Objective: define the assessment methodology and based on it assess all the PCI candidate projects Input: TYNDP 2018 project data and project monitoring information RG members are responsible to agree on the assessment methodology and prepare the Decision Making Body decision. Output: Assessment methodology and outcome of the methodology implementation per priority corridor.

Step 5. PCI list adoption and ACER opinion Objective: Technical and High Level Decision Making Body PCI lists per corridor adoption Input: RGs assessment results and ACER opinion Technical and High Level Decision Making Body are responsible to adopt the list. Output: 4th PCI list to be formally adopted by the Commission [Delegated Act]

Projects of Common Interest (PCI) Electricity Regional Groups & Smart grids thematic group

Electricity regional group leaders: Nicole Versijp - RG NSOG Tomasz Jerzyniak - RG NSI West Epistimi Oikonomopoulou & Miklos Gaspar - RG NSI East Oana Langa - RG BEMIP Thematic area - Smart grids leaders: Henriette Nesheim & Annachiara Vercellin

Northern Seas offshore grid Integrate offshore electricity grid development and the related interconnectors in the North Sea, the Irish Sea, the English Channel, the Baltic Sea and neighbouring waters to transport electricity from renewable offshore energy sources to centers of consumption and storage and to increase cross-border electricity exchange. Member States concerned: Belgium, Denmark, France, Germany, Ireland, Luxemburg, the Netherlands, Sweden, the United Kingdom;

North-South electricity interconnections in Western Europe Interconnections between Member States of the region and with the Mediterranean area including the Iberian peninsula, notably to integrate electricity from renewable energy sources and reinforce internal grid infrastructures to foster market integration in the region. Member States concerned: Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Malta, Portugal, Spain, the United Kingdom;

North-South electricity interconnections in Central Eastern and South Eastern Europe Interconnections and internal lines in North-South and East-West directions to complete the internal market and integrate generation from renewable energy sources. Member States concerned: Austria, Bulgaria, Croatia, Czech Republic, Cyprus, Germany, Greece, Hungary, Italy, Poland, Romania, Slovakia, Slovenia;

Baltic Energy Market Interconnection Plan in electricity Interconnections between Member States in the Baltic region and reinforcing internal grid infrastructures accordingly, to end isolation of the Baltic States and to foster market integration inter alia by working towards the integration of renewable energy in the region. Member States concerned: Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Sweden

PRIORITY THEMATIC AREA: Smart grids deployment adoption of smart grid technologies across the Union to efficiently integrate the behaviour and actions of all users connected to the electricity network, in particular the generation of large amounts of electricity from renewable or distributed energy sources and demand response by consumers. Member States concerned: All

ACER monitoring 2018 outcomes

Inclusion of monitoring in the PCI process

The Projects of Common Interest are chosen due to their high benefit for the Energy Union In order to bring the benefits to citizens and businesses the PCIs need to be implemented on time Monitoring by the Regional and High Level Groups is necessary to check and promoter the timely implementation of PCI projects

Copenhagen Forum conclusion “The Forum asks the Regional Groups members to increase their involvement in the project implementation in line with the legal requirements. In addition, the Forum asks the Regional Groups to include the monitoring in the process of defining the future PCI lists.”

Regional Group members: 1. acknowledge the importance of monitoring for projects’ implementation 2. agree to include the PCI monitoring outcomes in the PCI assessment methodology 3. follow and support the PCIs implementation under the Regional and High Level Groups fora

Working together: roles and responsibilities

Overview of roles & responsibilities

Cooperation Platform Members: ENTSOs, ACER and European Commission Regular meetings: Feb2018 until March/April 2019 Tasks: Makes sure that TYNDP material fulfills the PCI process needs Makes checks on data necessary for the PCI process Supports in the drafting of the PCI assessment methodology Continuous support to the Regional Groups in the PCI process

Regional Groups Members: Member States, National Regulatory Authorities, ENTSOs, ACER, promoters and European Commission Regular meetings: Q3/2018- Q2/2019 Tasks: Identifies and agrees on the Regional infrastructure needs/ gaps Agree on the PCI assessment methodology Discusses and makes recommendations to facilitate implementation of PCIs

Regional Groups –NRAs Annex III.2.(7) For proposed projects falling under the categories set out in Annex II.1 and 2, national regulatory authorities, and if necessary the Agency, shall, where possible in the context of regional cooperation (Article 6 of Directive 2009/72/EC, Article 7 of Directive 2009/73/EC), check the consistent application of the criteria/ cost-benefit analysis methodology and evaluate their cross-border relevance. They shall present their assessment to the Group. Within the context of the Regional groups discusses and makes recommendations to facilitate implementation of PCIs

Regional Groups – Stakeholders Stakeholders are invited to participate in meetings throughout the process [where appropriate] and engage in discussions, especially regarding the needs identification in the regions. Stakeholders and the general public are also consulted on the list of the candidate projects at the beginning of the process through an open consultation.

Decision Making Body Members: Member States and European Commission Meeting: June-Sept 2019 Tasks: Following Regional Groups recommendation discusses and adopts the regional PCI lists

ENTSO-E TYNDP 2018

NEXT STEPS

PCI submission Period: 15 October- 15 November Submission through online tool Average time to submit a project: 15 min All the data available in the TYNDP will be automatically considered The submission will be done at the project level

Regional system needs assessment Next meetings will be hold in the regional format: End November 2nd week December The meetings are also open to the public For the meetings preparation the RGs member will receive: mid-October the 2030 country needs sheets end October – a draft approach on identifying the relevant needs

Public PCI candidate consultation Period: mid-November – mid January Open to all the interested public Similar with the past PCI consultation

NRAs consultation Period: mid-November – mid January Based on an online questionnaire NRAs will be asked to check the consistent application of the criteria/ cost-benefit analysis methodology and evaluate their cross-border relevance

European Commission contacts – PCI process: For general inquiries: ENER-B1-PROJECTS@ec.europa.eu Regional group leaders: RG NSOG leader: Nicole Versijp Email: Nicole.Versijp@ec.europa.eu Phone: +32 229-66664 RG NSI West Electricity leader - Tomasz Jerzyniak Email: Tomasz.JERZYNIAK@ec.europa.eu Phone: +32 229-50563 RG NS East Electricity leaders: Epistimi Oikonomopoulou & Miklos Gaspar Email: Miklos.GASPAR@ec.europa.eu; Epistimi.OIKONOMOPOULOU@ec.europa.eu Phone: +32 229-99561 or +32 229-13544 RG BEMIP leader: Oana Langa Email: Oana.LANGA@ec.europa.eu Phone: +32 229-50638 Thematic area - Smart grids leaders: Henriette Nesheim & Annachiara Vercellin Email: Henriette.NESHEIM@ec.europa.eu ; Annachiara.VERCELLIN@ec.europa.eu Phone: + 32 229-54437 or +32 229-57665