1. Meeting of NSOG Electricity Regional Groups Preparation of the 3rd PCI list - Identification of Infrastructure Needs
Brussels, 27 October 2016

2. Agenda
1. Presentation of the meeting objectives; recapitulation of the problem → infrastructure need → project approach (European Commission)
2. Views on energy system specific problems in the Corridor:
2.1. ENTSO on behalf of project promoters;
2.2. ACER and National Regulatory Authorities;
2.3. Stakeholders;
2.4. Authorities of the Member States
3. Discussion and elaboration of a list of problems in the Corridor (All participants)
4. Discussion on infrastructure needed to address the identified problems in the Corridor (All participants) – if time allows
5. AOB

3. 1. Objectives
Hear and compare views of RG Members and Stakeholders on energy system problems
Endeavour to reach a common understanding of problems in the Corridor
A first attempt to establish if a PCI-type transmission could be a solution to some problems –> infrastructure needs
Ultimately: (a) more detailed definition of Priority Corridor
(b) where significant impacts still possible

4. 1. problem → infrastructure need → project
Symptom of a problem:
Suboptimal situation of energy system
Is it a problem? Yes, if deficiency/nuisance is significant
Problem:
Significant deficiency, bottleneck of energy system
A. Relevant for PCI context? -> Fits Priority Corridor? -> if yes, likely to get on list
B. Can other solution than transmission address the problem better -> not on the list
Need:
If a PCI type infrastructure could be an adequate solution to address a given problem

5. 1. Stay in the remit of the Corridor
Northern Seas Offshore grid
Corridors defined in Annex I
Geographical description
Functions / objectives of each corridor
Are all problems still relevant?
What more do we know about specific problems in the Corridor / parts of the Corridor?
offshore electricity grid development and the related interconnectors in the Northern Seas to transport electricity from renewable offshore energy sources to centres of consumption and storage and to increase cross-border electricity exchange

6. 1. Projects of Common Interest
Not any electricity asset (high/extra high-voltage; storages connected to transmission etc.) – Annex II
Cross-border relevance
Significant contribution to Market Integration, Competition, System Flexibility, Sustainability or Security of Supply

7. An example problem–>need–>project
COMPARISON OF AVERAGE WHOLESALE BASELOAD ELECTRICITY PRICES, Q2 2016
From a problem to a need
Existence of price differential
Is it a problem?
If high difference, likely yes – symptom of a bottleneck/ deficiency in market integration [HOW HIGH?]
In line with the objective of a Priority Corridor?
Could infrastructure remedy the problem?
If yes, there may be a need
Are there PCI candidates to address this need?

8. Ultimately defining the needs
Needs in terms of relevant criteria, such as of security of supply, market integration, system flexibility, interoperability, competition, or sustainability that are due to infrastructure shortcomings and that prevent the implementation of a given priority corridor or thematic area.

9. 2. Views on energy system specific problems in the Corridor
2.1. ENTSO on behalf of project promoters
2.2. ACER (and National Regulatory Authorities not in ACER presentation)
2.3. Stakeholders
2.4. Authorities of the Member States

10. 3. Discussion and elaboration of a list of problems in the Corridor
1. Overview table of contributions / positions
2. Discussion, reactions and completion of the table

11. 3. Discussion and elaboration of a list of problems in the Corridor
What happens next?
1. List of problems on CIRCABC – MSs to react within 10 working days if something missing
2. Regulators (ACER), promoters (through ENTSO-E) and RG leaders working together to collect evidence confirming an infrastructure need for each the problems -> list of needs
3. Proposed list of needs in CIRCABC by end November
4. Cross-regional electricity RG and Cross-regional gas RG meetings in the 2nd or 3rd week of December -> objective: approve the lists; launch of PCI call

12. Cross-regional mtg G/E
Objective:
Agreement on process
Dividing assignments
Draft list of problems
RG and Cross-regional mtgs
Objective:
Agreement on problems and corresponding infrastructure needs per Region
Gas RG mtg
Objective: Grouping of PCI candidates
[if needed]
RG mtgs (2 per RG)
Objective: Assessment of PCI candidates in the framework of what Region needs
RG mtg
Objective: Technical level DMB – agree Regional lists
Use of Project Portals of ENTSOs to collect PCI candidates submissions – under consideration

13. AOB 

14. Backup

15. 4. Discussion on infrastructure needed to address the identified problems in the Corridor (if time allows)
1. Can the problem be quantified? What magnitude?
2. What evidence that a PCI type infrastructure could be an adequate solution to address a given problem?
3. Which problems need to be looked into in more detail?

16. Electricity Priority Corridors
Northern Seas Offshore grid
North-South interconnections Western EU
offshore electricity grid development and the related interconnectors in the Northern Seas to transport electricity from renewable offshore energy sources to centres of consumption and storage and to increase cross-border electricity exchange
interconnections between MSs notably to integrate electricity from renewable energy sources and reinforce internal grid infrastructures to foster market integration in the region
+ Electricity highways and smart grids
North-South interconnections CEE
BEMIP Electricity
interconnections between MSs and reinforcing internal grid, to end isolation of the Baltic States and to foster market integration inter alia by integration of renewable energy in the region
interconnections and internal lines to complete the internal market and integrate generation from renewable energy sources 16