PCI status, its benefits and obligations
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1 PCI status, its benefits and obligations Meeting of the Regional Groups of the four Gas Priority Corridors; 30 May 2017 Adam Romanowski, DG B1
2 Climate, and Trans-European Networks Policies Foundations laid down in the Treaty on the Functioning of the EU Trans-European networks Title XVI Article Environment Title XX Article Title XXI Article 194 Regulation (EU) No 347/2013 of 17 April 2013 on guidelines for trans-european energy infrastructure 1996 (first law) 2013 (current law) 2017 (review) Well-interconnected energy network is a cornerstone of the Union's policies and strategies 2020 and Climate Strategy 2030 Framework for Climate and Union Strategy European Security Strategy Liquid Natural Gas (LNG) and Storage Strategy 2
3
4 Climate, and Trans-European Networks Policies Foundations laid down in the Treaty on the Functioning of the EU Trans-European networks Title XVI Article Environment Title XX Article Title XXI Article 194 Regulation (EU) No 347/2013 of 17 April 2013 on guidelines for trans-european energy infrastructure 1996 (first law) 2013 (current law) 2017 (review) Well-interconnected energy network is a cornerstone of the Union's policies and strategies 2020 and Climate Strategy 2030 Framework for Climate and Union Strategy European Security Strategy Liquid Natural Gas (LNG) and Storage Strategy 4
5 PCI - definition PCI means a specific energy infrastructure project necessary to implement one of the nine energy infrastructure priority corridors or one of the three thematic areas defined in the TEN-E Regulation. PCIs are necessary to address energy infrastructure problems and bottlenecks identified within each of the priority corridors or thematic areas. 195 PCIs identified in 2015, including 77 PCIs in gas, 108 in electricity, 7 in oil and 3 smart grids. 5
6 The process: 1. Identification of problems and needs by the Regional Groups 2. Submission of PCI candidates by project promoters 3. Eligibility check of the candidate PCIs 4. Public consultation open to all 5. (Start of the) assessment process by the Regional Groups 6. Check by the NRAs of the consistent application of the criteria 7. Preparation of the draft regional lists 8. Opinion of ACER on the draft regional lists 9. Adoption of the final regional lists by the decision-making body of the Regional Groups 10. Adoption of the Union list of PCIs on the basis of the regional lists (in the form of a delegated act amending the TEN-E Regulation) 6
7 Participants of the PCI process: Regional Groups 12 Regional Groups; one for each priority corridor/thematic Tasks: Primarily management of the process of identifying PCIs; preparation of the draft regional lists of PCIs; monitoring of the implementation of PCIs; Members: The European Commission, Member States, National Regulatory Authorities, the gas Transmission System Operators, ENTSO for gas, and the Agency for the Cooperation of Regulators. Stakeholders: organisations representing producers, DSO, suppliers, consumers, and organisations for environmental protection. Decision-making body: o o o One per each corridor; Task: Adoption of the regional list; Composition: Member States and the Commission. 7
8 Benefits stemming from the TEN-E Regulation Four sets of measures which are to facilitate development of PCIs 1. Accelerated and streamlined permit granting process One-stop-shop Max. time-frame of 3.5 years Three alternative schemes for taking a comprehensive decision Publication of a manual of procedures for project promoters Obligation to prepare a detailed schedule of the process 2. Enhanced involvement of the public in the process Additional public consultation in the (early stage of the) permit granting process Concept of public consultations Report from the public consultations Disclosure of information about the project to the public (website, leaflet, written invitations to dedicated meetings for relevant affected stakeholders. 8
9 Benefits stemming from the TEN-E Regulation Four sets of measures which are to facilitate development of PCIs 3. Improved regulatory framework Cross-border cost allocation and obligation of including efficiently incurred investment costs in tariffs Incentives to address risks in development of PCIs higher than compared to risks normally incurred by a comparable project (rules for: anticipatory investment, early recognition of incurred costs, providing additional return on capital, etc.) 4. Co-funding under Connecting Europe Facility (CEF) 5.3 billion for the period Grants for studies and works (INEA) & financial instruments (EIB) Organised through competitive calls for proposals Several eligibility and selection criteria, including significant positive externalities (e.g. SOS), CBCA decision, lack of commercial viability 9
10 Obligations stemming from the TEN-E Regulation Obligations for project promoters, national authorities, NRAs, ACER, ENTSO- G and the Commission. 1. Project promoter's obligations Implementation plan for each PCI Cost benefit analysis pursuant to the methodology Annual report for each PCI on the progress achieved Transparency on each PCI towards the public and stakeholders (website, leaflet) Additional public consultations (including, a concept for public participation, a postconsultation report, written invitations to dedicated meetings for relevant affected stakeholders) Permit granting process with a full respect of the requirements stemming from the TEN-E Regulation (notification, application file) Participation in the Regional Group meetings, including those dedicated to the monitoring of PCIs 10
11 Obligations stemming from the TEN-E Regulation 2. MS/national authority's obligations Annual report on the progress achieved in the implementation of PCIs located on its territory, and on the reasons for delays (if any) Adjustment of its national permit granting process to ensure compliance with the standards steaming from the TEN-E Regulation: o Compliance with the 3.5 year's timeframe o Establishment of the one-stop shop and ensuring its coordinating powers o Structuring the process in two stages o Application of a scheme for taking a comprehensive decision, etc o Manual of procedures o Detailed schedule for the permit granting process for each PCI o Concept of public participation for each PCI Participation in the Regional Group meetings 11
12 Review of the TEN-E Regulation The Review Study will assess the effectiveness, efficiency, coherence, relevance and EU added value of the TEN-E Regulation and the PCI framework Stakeholders' survey has just been launched and will remain open until 7 June 2017 JOIN THE SURVEY and tell us what you think 12
13 Thank you for your attention
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