Out for consultation - Revised methodology for assessing electricity infrastructure projects

The Cost-Benefit Analysis methodology 3.0 (3rd CBA Guideline for cost benefit analysis of grid development projects) is put forward for consultation until 9 December 2019

The CBA methodology serves to evaluate the benefits and costs of electricity transmission and storage projects from a pan-European perspective, in the Ten-Year Network Development Plan (TYNDP). As such, it provides important input for the selection process of European Projects of Common Interest. The main objective of the CBA methodology is to provide a common and uniform basis for the assessment of projects with regard to their value for European society.

The feedback received from stakeholders on previous versions of the CBA methodollogy, and ENTSO-E’s experience with the 2nd ENTSO-E Guideline For Cost Benefit Analysis of Grid Development Projects (used to assess projects in the TYNDP 2018), has shown the need of improving the European project assessment methodology.

A number of elements were improved compared to the existing CBA. The main changes relate to:

  • Modular approach
  • Security of supply adequacy indicator
  • Variation in grid losses
  • Additional societal benefit due to CO2 variation
  • Non-direct greenhouse emissions
  • Security of supply system flexibility indicator
  • Project benefits based on promoters’ inputs
  • CAPEX and OPEX: more details on the required information

Stakeholders are welcome to give feedback via ENTSO-E’s consultation hub until 9 December. A workshop to present and discuss the CBA 3.0 will take place in Brussels on 8 November, more information and registration here.

Go to the consultation

Download the draft 3rd CBA Guideline for cost benefit analysis of grid development projects

View the 2nd CBA Guideline for cost benefit analysis of grid development projects

How stakeholders contributed to the CBA 3.0 - Stakeholders work streams

In December 2017 ENTSO-E invited external stakeholders to participate to three work streams dealing with specific aspects of the CBA, including security of supply (divided between adequacy, stability and ancillary services), socio-economic welfare, and storage. Each work stream delivered reports(s), which have been reviewed and merged by ENTSO-E into one single document. The contents and views reflected in the reports were not altered during this final review.

The outcome of this work has served as a starting point and as an extended consultation exercise for drafting the CBA 3.0.

Download the report Outcome of the workstreams organised with stakeholders in 2018