GRI Investment Project A-Z Adam Cooper EFET Stockholm 24 September

Introduction  Provide a brief run through of the project to date Rationale Stakeholders Core Group Activities Milestones Conclusions

Recall  Reason for a Virtual Test A non-threatening way to test different concepts of signalling investment A trigger for discussion A classroom to learn lessons

Background Who are the stakeholders? RegulatorsTSOsShippers

Stakeholders  What do they want and what do they contribute? Regulators – protect consumers and determine the investment test TSOs – to maximise investor value and deliver an investment model within the Regulatory rules Shippers – maximise value by obtaining the rights to move gas efficiently primarily by signalling efficient levels of capacity demand

Core Group Activities  Assembling the investment rules Extensive work to bring together the rules for four VT countries  Describe the project Naturally limited but real enough for a test  Allow shippers to bid Run the VT bidding and report as inputs to the investment model

Core Group Activities  The investment assessment Produce indicative outcomes and discover any flaws Adjust rules where necessary to test shipper reactions

Milestones  Development of manual on the regulatory environment  Delivered a Regulatory model for assessing investments  Ran a virtual test  Ran an experiment  Draft Journal of Findings in production

Challenges  Obtaining the information for the investment criteria  Running a useful VT and reporting outcomes  Putting the last year of effort into tangible policy advice

More to do  We are not at Z yet!  The workshop will pose more questions for your input  The draft findings needs finalising  At some point the work needs to relate to the real world through initial advice and a policy response