Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC
Date: 2011-10-19
Institutions: European Commission
Subjects: energy grid, financing method, gas supply, oil pipeline, project of common interest, trans-European network

EUROPEAN COMMISSION 

Brussels, 19.10.2011 
COM(2011) 658 final 

2011/0300 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on guidelines for trans-European energy infrastructure and repealing Decision No 
1364/2006/EC 

(Text with EEA relevance) 

{SEC(2011) 1233 final} 
{SEC(2011) 1234 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Grounds for and objectives of the proposal 

Major  efforts  are  needed  to  modernise  and  expand  Europe's  energy  infrastructure  and  to 
interconnect  networks  across  borders  to  meet  the  Union's  core  energy  policy  objectives  of 
competitiveness, sustainability and security of supply. 

The Commission's Communication on energy infrastructure priorities for 2020 and beyond1, 
adopted on 17 November 2010, therefore called for a new EU energy infrastructure policy to 
coordinate  and  optimise  network  development  on  a  continental  scale.  It  confirmed  in 
particular the necessity to overhaul the existing Trans-European Networks for Energy (TEN-
E) policy and financing framework. 

Such  a  new  policy  is  crucial  to  ensure  that  solidarity  between  Member  States  will  become 
operational, that the internal energy market is completed and isolated regions are linked, that 
alternative  supply  or  transmission  routes  and  sources  of  energy  will  materialise  and  that 
renewables  will  develop  and  compete  with  traditional  sources,  as  highlighted  by  the  4th  of 
February 2011 European Council. 

On 29 June 2011, the Commission adopted the Communication "A Budget for Europe 2020" 
on the next multi-annual financial framework (2014-2020)2, which proposes the creation of a 
Connecting Europe Facility to promote the completion of priority energy, transport and digital 
infrastructures  with  a  single  fund  of  EUR  40  billion,  out  of  which  EUR  9.1  billion  are 
dedicated to energy3. 

The present proposal lays down rules for the timely development and interoperability of trans-
European energy networks in order to achieve the energy policy objectives of the Treaty on 
the  Functioning  of  the  European  Union  to  ensure  the  functioning  of  the  internal  energy 
market,  to  ensure  security  of  supply  in  the  Union,  to  promote  energy  efficiency  and  the 
development  of  new  and  renewable  forms  of  energy,  and  to  promote  the  interconnection  of 
energy networks. 

More specifically, this Regulation aims at the full integration of  the internal energy market, 
including  by  ensuring  that  no  Member  State  is  isolated  from  the  European  network, 
contributes  to  sustainable  development  and  protection  of  the  environment  by  enabling  the 
Union to achieve its targets of a 20% reduction of greenhouse gas emissions4, 20% increase in 
energy efficiency and 20% of renewable energy in final energy consumption by 2020, while 
ensuring security of supply and solidarity among Member States. 

By  pursuing  these  objectives,  this  proposal  contributes  to  smart,  sustainable  and  inclusive 
growth and brings forward benefits for the entire European Union in terms of competitiveness 
and economic, social and territorial cohesion. 

1 
2 
3 
4 

COM(2010)677 
COM(2011) 500/I final and COM(2011) 500/II final (Policy Fiches) 
All amounts in 2011 prices 
30% if the conditions are right 

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To this effect, this initiative identifies, for the period up to 2020 and beyond, a limited number 
of trans-European priority corridors and areas covering electricity and gas networks as well as 
oil  and  carbon  dioxide  transport  infrastructure,  for  which  European  Union  action  is  most 
warranted. It then aims at implementing these priorities by: 

– 

– 

– 

streamlining  permit  granting  procedures  to  significantly  reduce  their  duration  for 
projects of common interest and increase public participation and acceptance for the 
implementation of such projects; 

facilitating the regulatory treatment of projects of common interest in electricity and 
gas  by  allocating  costs  depending  on  the  benefits  provided  and  ensuring  allowed 
returns are in line with risks incurred; 

ensuring  implementation  of  projects  of  common  interest  by  providing  necessary 
market-based  and  direct  EU  financial  support.  In  this  latter  regard,  the  proposal 
provides  the  basis  for  eligibility  of  projects  of  common  interest  for  EU  financial 
assistance  under  the  "Connecting  Europe  Facility",  which  is  subject  to  a  separate 
legislative proposal. 

The proposal is a strategic priority in the Commission Work Programme for 2011. 

General context 

The challenge of interconnecting and adapting our energy infrastructure to the new needs is 
significant, urgent, and concerns all energy sectors. 

Electricity networks must be upgraded and modernised to meet increasing electricity demand 
due to a major shift in the overall energy value chain and mix. The grids must also be urgently 
extended  and  upgraded,  including  through  electricity  highways,  to  foster  market  integration 
and maintain the existing levels of system's security, but especially to transport and balance 
electricity  generated  from  renewable  sources,  which  is  expected  to  more  than  double  in  the 
period 2007-2020. At the same time, reaching the EU's 2020 energy efficiency and renewable 
energy targets will not be possible without more innovation and intelligence in the networks 
at  both 
information  and 
level, 
communication technologies. 

transmission  and  distribution 

in  particular 

through 

Natural gas will continue, provided its supply is secure, to play a key role in the EU's energy 
mix  in  the  coming  decades  and  will  gain  importance  as  the  back-up  fuel  for  variable 
electricity  generation.  In  the  medium  term  depleting  indigenous  conventional  natural  gas 
resources  call  for  additional,  diversified  imports.  Gas  networks  face  additional  flexibility 
requirements in the system, the need for bi-directional pipelines, enhanced storage capacities 
and flexible supply, including liquefied (LNG) and compressed natural gas (CNG). 

Given  the  role  of  oil  in  the  energy  mix  of  the  coming  decades,  maintaining  uninterrupted 
crude-oil supplies to land-locked EU countries in Central-Eastern Europe, currently dependent 
on limited supply routes, is of strategic importance. 

Finally,  carbon  capture  and  storage  (CCS)  technologies  would  reduce  carbon  dioxide 
emissions  on  a  large  scale  while  allowing  the  use  of  fossil  fuels,  which  will  remain  an 
important source for electricity generation over the next decades. The future development of a 
cross-border network for carbon dioxide transport requires steps to be taken now for European 
level infrastructure planning and development. 

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In its report to the June 2011 Energy Council5, the Commission has estimated total investment 
needs in energy infrastructures of European importance up to 2020 at about EUR 200 billion: 

– 

– 

– 

About  EUR  140  billion  for  high  voltage  electricity  transmission  systems,  both 
onshore  and  offshore,  storage,  and  smart  grid  applications  at  transmission  and 
distribution level; 

About EUR 70 billion for high pressure gas transmission pipelines (coming into the 
EU  and  between  EU  Member  states),  storage,  liquefied/compressed  natural  gas 
(LNG/CNG) terminals and reverse flow infrastructure; 

About EUR 2.5 billion for carbon dioxide transport infrastructure. 

Investment volumes for the period from 2011 up to 2020 will increase by 30% for gas and up 
to  100%  for  electricity  compared  to  current  levels.  This  investment  challenge  and  urgency 
clearly  distinguishes  energy  infrastructures  from  infrastructures  in  other  sectors,  as  energy 
networks are a precondition for reaching the 2020 energy and climate targets and the longer 
term climate objectives. 

The main identified obstacles, which will under business-as-usual assumptions prevent these 
investments  from  taking  place  or  delay  them  far  beyond  the  2020  deadline,  are  problems 
related  to  permit  granting  (lengthy  and  ineffective  permit  granting  procedures,  along  with 
public  opposition),  regulation  (framework  not  geared 
towards  delivering  European 
infrastructure  priorities)  and  financing  (limited  financing  capacities  of  operators,  lack  of 
adapted funding instruments and sufficient support). 

Existing provisions 

The TEN-E framework has been developed and shaped in the 1990’s through the successive 
TEN-E  Guidelines  and  the  corresponding  financing  Regulation.  The  2006  Guidelines  for 
Trans-European Energy Networks6 listed about 550 projects eligible for Community support, 
classifying them in the following three categories: projects of European interest (42 in total); 
priority  projects  and  projects  of  common  interest.  These  projects  cover  only  electricity  and 
gas infrastructure. The report on the implementation of the TEN-E framework in the period 
2007-20097, published in April 2010, concluded that while making a positive contribution to 
selected  projects  by  giving  them  political  visibility,  the  policy  lacks  focus,  flexibility  and  a 
top-down approach to fill identified infrastructure gaps. 

The  TEN  financing  Regulation8,  adopted  on  20  June  2007,  sets  out  the  conditions  for  co-
funding of TEN-E projects, with a budget for the period 2007-2013 of EUR 155 million. The 
TEN-E Programme's financial resources and set-up have however proven to be inadequate in 
light of the paradigm shift to a low carbon energy system and hence the major evolution and 
investments  needed  in  energy  infrastructures  in  the  coming  years  (limited  budget,  no  risk 
mitigation  instruments,  no  funding  outside  the  EU,  insufficient  synergies  with  other  EU 
funds). 

5 
6 
7 
8 

SEC(2011)755 
Decision No 1364/2006/EC 
COM(2010)203 and SEC(2010)505 
Regulation (EC) No 680/2007 

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Set up in the context of the economic and financial crisis, the European Energy Programme 
for Recovery9 has, for the first time, allocated significant one-off amounts (about EUR 3.85 
billion)  to  a  limited  number  of  eligible  projects  in  the  domain  of  electricity  and  gas 
infrastructures, off-shore wind and CCS demonstration projects. 

Consistency with other EU policies and objectives 

This  initiative  is  anchored  in  the  Europe  2020  Strategy  for  smart,  sustainable  and  inclusive 
growth10,  which  put  energy  infrastructures  at  the  forefront  as  part  of  the  flagship  initiative 
"Resource  efficient  Europe".  It  underlined  the  need  to  urgently  upgrade  Europe's  networks 
towards  a  European  "smart  supergrid",  interconnecting  them  at  the  continental  level,  in 
particular  to  integrate  renewable  energy  sources.  The  priorities  identified  and  the  measures 
proposed in this initiative with regard to permit granting, regulation and financing are fully in 
line with these objectives. 

The  proposal  aims  at  replacing  the  existing  TEN-E  Guidelines  and  forms  a  logical  package 
with the “Connecting Europe Facility” (CEF) developed in view of replacing the current TEN 
financing Regulation.  

This initiative is also a vital contribution to the cost-effective achievement of the two binding 
targets of 20% of renewables and 20%11 of greenhouse gas emission reductions by 2020 and 
aims  to  be  in  line  with  the  pathway  set  out  in  the  Commission’s  Communication  on  a 
Roadmap for moving to a competitive low-carbon economy in 2050 and the EU's long term 
objective  of  an  80-95%  reduction  in  greenhouse  gas  emissions  by  2050  compared  to  1990 
levels12. 

In  accordance  with  Article  11  TFEU,  the  proposal  integrates  the  existing  environmental 
protection requirements in the context of energy infrastructure. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Consultation, data collection and use of expertise 

This  proposal  was  developed  on  the  basis  of  a  broad  range  of  contributions  from  Member 
States  and  interested  parties  provided  on  various  occasions  (high-level  conferences, 
workshops, surveys), including two public consultations on permit granting and on the use of 
project bonds for infrastructure projects13. The impacts of the various policy options proposed 
were  analysed  in  two  impact  assessments  carried  out  in  2010  and  2011  using  the  results  of 
various  models  and  numerous  studies,  of  which  three  were  specifically  commissioned  to 
address  investment  needs,  permit  granting  and  financing  issues.  Both  impact  assessments 
addressed the economic, social and environmental impacts of the options, taking into account 
the subsidiarity and proportionality principles. 

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10 
11 
12 
13 

Regulation (EC) No 663/2009 
COM(2010) 2020 
30% if the conditions are right 
COM(2011) 112 in combination with SEC(2011)288 
See section 1.2.1 of the accompanying impact assessment. 

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Impact assessment 

The first impact assessment (IA) in 2010 focused on the scope of the new initiative in terms of 
energy sectors covered, its design in terms of identifying priorities and selecting projects of 
common  interest,  the  form  of  regional  coordination  and  cooperation  and  general  principles 
with regard to permit granting. 

Based on this first analysis, the 2011 IA analyses in much more detail policy options in the 
fields of permit granting and public consultation, regulation and financing that should apply to 
projects  of  common  interest  selected  for  implementation  of  the  previously  identified 
infrastructure  priorities.  For  each  of  the  various  obstacles  identified,  it  assesses  available, 
effective and cost-efficient solutions. 

Permit granting and public consultation 

The analysis compares three options: establishment of a regime of common interest; rules on 
the  organisation  and  duration  of  the  permit  granting  process,  notably  a  "full  one-stop  shop" 
and a time limit; a combination of the two previous options. 

As  regards  the  measures  related  to  the  Habitats  Directive,  the  impact  on  the  local  flora  and 
fauna of the regime of common European interest is expected to be relevant for only a very 
small subset of projects of common interest identified as possibly in conflict with Natura2000 
areas,  which  are,  however,  crucial  for  the  achievement  of  energy  and  climate  policy 
objectives. 

The overall impact of the last policy option is considered to be the most positive of all, as it 
would lead to the on-time completion of almost all the needed projects of common interest by 
2020, provided appropriate measures on regulation and financing are in place. Environmental 
impacts,  social  impacts  on  employment  and  economic  impacts  on  GDP  are  expected  to  be 
stronger  under  this  policy  option  as  all  projects  of  common  interest  would  be  completed, 
while administrative cost savings would be significant. 

Regulatory issues 

The  analysis  compares  three  options:  cross-border  cost  allocation;  investment  incentives;  a 
combination of the two previous options. 

The  analysis  shows  that  both  an  ex  ante  cross-border  cost  allocation  mechanism  and 
incentives  commensurate  with  the  risks  incurred  by  the  operator  are  necessary  to  ensure 
implementation of projects of common interest facing challenges with regard to their viability. 
Their overall economic, social and environmental impact is large and positive. 

Financing 

For the purpose of assessing the full range of possible measures with regard to infrastructure 
development,  the  analysis  also  addresses  four  financing  options,  even  if  their  translation  in 
policy measures will take place in the CEF: use of risk sharing instruments (including project 
bonds and guarantees); use of risk capital instruments (including equity participations); use of 
grant support for project studies and construction; a combination of grants, risk sharing and 
risk capital instruments. 

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The overall impact of the last policy option is the most positive, as it cumulate the positive 
impacts of the individual options and provide a flexible toolbox of market-based instruments 
and  direct  financial  support,  leading  to  synergies  and  efficiency  gains  by  offering  the  most 
cost-effective solution for specific project risks. This policy option also reflects the measures 
proposed under the Connecting Europe Facility. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of proposed action 

The proposed Regulation grants priority to 12 strategic trans-European energy infrastructure 
corridors  and  areas.  It  sets  rules  to  identify,  within  a  set  of  defined  energy  infrastructure 
categories,  projects  of  common  interest  (PCIs),  which  are  necessary  to  implement  these 
priorities. To this end, it establishes a selection process based on regional expert groups and 
an  advisory  role  for  the  Agency  for  the  Cooperation  of  Energy  Regulators  (ACER)  in 
electricity and gas, the final decision, to be updated every two years, on a Union-wide list of 
projects of common interest being taken by the Commission. The regional expert groups and 
the Agency for the Cooperation of Energy are entrusted with the monitoring and evaluation of 
the implementation of PCIs. The Commission may nominate European coordinators for PCIs 
facing difficulties. 

The  proposal  establishes  a  regime  of  common  interest  for  PCIs,  giving  particular 
responsibilities to one national competent authority within each Member State to coordinate 
and oversee the permit granting process for PCIs, setting minimum standards for transparency 
and  public  participation  and  fixing  the  maximum  allowed  duration  of  the  permit  granting 
process. The proposal also clarifies that PCIs can be implemented under certain conditions for 
reasons  of  "overriding  public  interest"  as  defined  in  Directives  92/43/EC  and  2000/60/EC. 
These  measures  are  proportionate  as  they  aim  at  a  minimum  alignment  of  national 
administrative procedures necessary to facilitate the implementation of – mostly cross-border 
– PCIs. Member States are free to design their specific internal procedures in line with their 
national legal systems in order to comply with the requirements of this Regulation. 

The  proposed  Regulation  provides  a  methodology  and  a  process  for  the  elaboration  of  a 
harmonised energy system-wide cost-benefit analysis for PCIs in electricity and gas. On the 
basis of this methodology, it gives responsibility to national regulatory authorities and ACER 
to  allocate  costs  across-border  for  PCIs  in  these  sectors  according  to  the  benefits  in  the 
Member States directly or indirectly concerned by these PCIs. National regulatory authorities 
are  also  requested  to  grant  appropriate  incentives  through  tariffs  for  the  implementation  of 
PCIs facing higher risks for justified reasons. 

Finally,  the  Regulation  determines  the  conditions  for  eligibility  of  PCIs  to  Union  financial 
assistance  under  the  Connecting  Europe  Facility,  for  both  studies  (accessible  to  all  PCIs 
except those in the oil sector) and works (accessible to all PCIs in the smart grids and carbon 
dioxide sector, and to PCIs in electricity and gas fulfilling certain conditions, notably having 
obtained a cross-border cost allocation decision). 

Legal basis 

The proposal is based on Article 172 of the Treaty on the Functioning of the European Union. 
According  to  Article  171(1),  “the  Union  shall  establish  a  series  of  guidelines  covering  the 

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objectives, priorities and broad lines of measures envisaged  in the sphere  of  trans-European 
networks; these guidelines shall identify projects of common interest”. Article 172 specifies 
that the guidelines and other measures referred to in Article 171(1) shall be adopted under co-
decision procedure. 

Subsidiarity principle 

The subsidiarity principle applies to this proposal insofar as energy policy does not fall under 
the  exclusive  competence  of  the  Union.  Energy  transmission  infrastructure  has  Trans-
European  or  at  least  cross-border  nature  or  impacts.  Member  State  level  regulation  is  not 
suited  and  individual  national  administrations  have  no  competence  to  deal  with  these 
infrastructures as a whole. From an economic perspective, energy network developments can 
best  be  achieved  when  planned  with  a  European  perspective,  encompassing  both  EU  and 
Member State action while respecting their respective competences. The proposed Regulation 
therefore respects the subsidiarity principle. 

Proportionality principle and choice of legal instrument 

The proposal does not go beyond what is necessary to achieve the objectives pursued, given 
the energy and climate policy objectives agreed at Union level and the obstacles to develop 
adequate  energy  infrastructures.  The  instrument  chosen  is  a  Regulation,  which  has  direct 
application  and  is  binding  in  its  entirety.  Such  a  measure  is  necessary  to  ensure  timely 
implementation of the energy infrastructure priorities by 2020. 

In particular, the establishment of a permit granting framework with competent authorities at 
national level and clear time limits, within which the permit granting process can be carried 
out  according  to  national  specificities,  is  proportional  to  the  objective  of  accelerating  the 
permit granting process. 

4. 

BUDGETARY IMPLICATION 

All  budgetary  implications  of  this  proposal  are  dealt  with  under  the  legislative  financial 
statement of the Proposal for a Regulation establishing the Connecting Europe Facility. 

5. 

OPTIONAL ELEMENTS  

Repeal of existing legislation 

Adoption of the proposal will lead to repeal of Decision 1364/2006/EC as of 1 January 2014. 
However,  this  will  not  affect  the  granting,  continuation  or  modification  of  financial  aid 
awarded  by  the  Commission  on  the  basis  of  calls  for  proposals  launched  under  the  existing 
TEN  financing  Regulation  for  projects  targeted  by  this  Decision,  or  for  TEN-E  projects 
benefiting from support through structural funds. 

European Economic Area (EEA) 

The Proposal concerns an EEA matter and should therefore be applicable to it. 

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2011/0300 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on guidelines for trans-European energy infrastructure and repealing Decision No 
1364/2006/EC 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 172 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Having regard to the opinion of the European Economic and Social Committee14,  

Having regard to the opinion of the Committee of the Regions15,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

On  26  March  2010,  the  European  Council  agreed  to  the  Commission's  proposal  to 
launch  a  new  strategy  "Europe  2020".  One  of  the  priorities  of  the  Europe  2020 
strategy16 is sustainable growth to be achieved by promoting a more resource efficient, 
greener and more competitive economy. The strategy put energy infrastructures at the 
forefront as part of the flagship initiative "Resource efficient Europe", by underlining 
the  need  to  urgently  upgrade  Europe's  networks,  interconnecting  them  at  the 
continental level, in particular to integrate renewable energy sources. 

Communication  from  the  Commission  entitled  "Energy  infrastructure  priorities  for 
2020  and  beyond  –  A  Blueprint  for  an  integrated  European  energy  network"17, 
followed  by  the  Transport,  Telecommunications  and  Energy  Council  conclusions  of 
28 February 2011 and the European Parliament resolution of 6 July 2011, called for a 
new energy infrastructure policy to optimise network development at European level 

14 
15 
16 
17 

OJ C , , p. . 
OJ C , , p. . 
COM(2010) 2020 
COM(2010) 677 

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(3) 

(4) 

(5) 

(6) 

(7) 

for  the  period  up  to  2020  and  beyond,  in  order  to  allow  the  Union  to  meet  its  core 
energy policy objectives of competitiveness, sustainability and security of supply. 

The  European  Council  of  4  February  2011  underlined  the  need  to  modernise  and 
expand Europe's energy infrastructure and to interconnect networks across borders, in 
order to make solidarity between Member States operational, to provide for alternative 
supply or transit routes and sources of energy and develop renewable energy sources 
in  competition  with  traditional  sources.  It  insisted  that  no  EU  Member  State  should 
remain  isolated  from  the  European  gas  and  electricity  networks  after  2015  or  see  its 
energy security jeopardized by lack of the appropriate connections. 

Decision  No  1364/2006/EC  of  the  European  Parliament  and  of  the  Council  of  6 
September  2006  lays  down  guidelines  for  trans-European  energy  networks18.  These 
Guidelines (TEN-E) have as objectives to support the completion of the Union internal 
energy  market  while  encouraging  the  rational  production,  transportation,  distribution 
and  use  of  energy  resources,  to  reduce  the  isolation  of  less-favoured  and  island 
regions, to secure and diversify the Union's energy supplies also through co-operation 
with third countries, and to contribute to sustainable development and protection of the 
environment. 

Evaluation of the current TEN-E framework has clearly shown that this policy, while 
making a positive contribution to selected projects by giving them political visibility, 
lacks vision, focus, and flexibility to fill identified infrastructure gaps. 

Accelerating 
the  refurbishment  of  existing  and  deployment  of  new  energy 
infrastructure  is  vital  to  achieve  the  Union's  energy  and  climate  policy  objectives, 
consisting  in  completing  the  internal  market  in  energy,  guaranteeing  security  of 
supply,  notably  for  gas  and  oil,  reducing  greenhouse  gas  emissions  by  20%19, 
increasing the share of renewable energy in the final energy consumption to 20%20 and 
achieving a 20% increase in energy efficiency by 2020. At the same time, the Union 
has to prepare its infrastructure for further decarbonisation of its energy system in the 
longer term towards 2050. 

Despite  its  legal  existence  as  defined  in  Directives  2009/72/EC  of  the  European 
Parliament  and  of  the  Council  of  13  July  2009  concerning  common  rules  for  the 
internal market in electricity21 and 2009/73/EC of the European Parliament and of the 
Council of 13 July 2009 concerning common rules for the internal market in natural 
gas  22,  the  internal  market  in  energy  remains  fragmented  due  to  insufficient 
interconnections  between  national  energy  networks.  Union-wide  integrated  networks 
however  are  vital  for  ensuring  a  competitive  and  well  functioning  integrated  market 
for promoting growth, employment and sustainable development. 

(8) 

The Union's energy infrastructure should be upgraded in order to prevent and increase 
its resilience to natural or man-made disasters, adverse effects of climate change and 

18 
19 
20 

21 
22 

OJ L 262, 22.9.2006, p. 1. 
30% if the conditions are right 
Directive  2009/28/EC  of  the  European  Parliament  and  of  the  Council  of  23  April  2009  on  the 
promotion of the use of energy from renewable sources, OJ L 140, 5.6.2009, p. 16. 
OJ L 211, 14.8.2009, p.55.  
OJ L 211, 14.8.2009p.94. 

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threats to its security, notably concerning European critical infrastructures as set out in 
Council  Directive  2008/114/EC  of  8  December  2008  on  the  identification  and 
designation  of  European  critical  infrastructures  and  the  assessment  of  the  need  to 
improve their protection23. 

(9) 

The importance of smart grids in achieving the Union's energy policy objectives has 
been  acknowledged  in  Communication  from  the  Commission  to  the  European 
Parliament,  the  Council,  the  European  Economic  and  Social  Committee  and  the 
Committee of the Regions "Smart grids: from innovation to deployment"24. 

(10)  Communication  from  the  Commission  "The  EU  Energy  Policy:  Engaging  with 
Partners  beyond  Our  Borders"25  underlined  the  need  for  the  Union  to  include  the 
promotion of energy infrastructure development in its external relations with a view to 
supporting  the  socio-economic  development  beyond  the  Union  borders.  The  Union 
should facilitate infrastructure projects linking the Union's energy networks with third 
country networks, in particular in neighbouring countries and in countries, with which 
the Union has established specific energy cooperation. 

(11)  The investment needs up to 2020 in electricity and gas transmission infrastructures of 
European  relevance  have  been  estimated  at  about  EUR  200  billion.  The  significant 
increase in investment volumes compared to past trends and the urgency to implement 
the  energy  infrastructure  priorities  requires  a  new  approach  in  the  way  energy 
infrastructures, and notably those of cross-border nature, are regulated and financed. 

(12)  The  Commission  Staff  Working  Paper  to  the  Transport,  Telecommunications  and 
Energy  Council  of  10  June  2011  "Energy  infrastructure  investment  needs  and 
financing  requirements"26  stressed  that  approximately  half  of  the  total  investments 
needed for the decade up to 2020 are at risk of not being delivered at all or not in time 
due to obstacles related to permit granting, regulation and financing. 

(13)  This  Regulation  lays  down  rules  for  the  timely  development  and  interoperability  of 
trans-European  energy  networks  in  order  to  achieve  the  Treaty's  energy  policy 
objectives  to  ensure  the  functioning  of  the  internal  energy  market  and  security  of 
supply  in  the  Union,  to  promote  energy  efficiency  and  energy  saving  and  the 
development  of  new  and  renewable  forms  of  energy,  and  to  promote  the 
interconnection  of  energy  networks.  By  pursuing  these  objectives,  this  proposal 
contributes to smart, sustainable and inclusive growth and brings benefits to the entire 
Union in terms of competitiveness and economic, social and territorial cohesion. 

(14)  The Commission has identified, following close consultations with all Member States 
and  stakeholders,  12  strategic  trans-European  energy  infrastructure  priorities,  whose 
implementation  by  2020  is  essential  for  the  achievement  of  the  Union's  energy  and 
climate  policy  objectives.  These  priorities  cover  different  geographic  regions  or 
thematic  areas  in  the  field  of  electricity  transmission  and  storage,  gas  transmission, 
storage  and  liquefied  or  compressed  natural  gas  infrastructure,  carbon  dioxide 
transport and oil infrastructure. 

23 
24 
25 
26 

OJ L 345, 23.12.2008, p. 75 
COM(2011) 202 final 
COM (2011) 539 
SEC(2011)755 

EN 

11 

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(15)  The  identification  of  projects  of  common  interest  should  be  based  on  common, 
transparent  and  objective  criteria  in  view  of  their  contribution  to  the  energy  policy 
objectives.  For  electricity  and  gas,  proposed  projects  should  be  part  of  the  latest 
available ten-year network development plan. This plan should notably take account of 
the  conclusions  of  the  4  February  European  Council  with  regard  to  the  need  to 
integrate peripheral energy markets. 

(16) 

In  view  of  complying  with  article  172  of  the  Treaty  on  the  Functioning  of  the 
European  Union, regional groups should  be established for the purpose of proposing 
projects  of  common  interest  that  will  be  approved  by  Member  States.  In  order  to 
ensure  broad  consensus,  these  regional  groups  should  ensure  close  cooperation 
between  Member  States,  national  regulatory  authorities,  project  promoters  and 
relevant  stakeholders.  The  cooperation  should  rely  as  much  as  possible  on  existing 
regional  cooperation  structures  of  national  regulatory  authorities  and  transmission 
system  operators  and  other  structures  established  by  the  Member  States  and  the 
Commission.  

(17)  The  Union-wide  list  of  projects  of  common  interest  should  be  limited  to  projects 
which contribute the most to the implementation of the strategic energy infrastructure 
priority  corridors  and  areas.  This  requires  the  decision  on  the  list  to  be  taken  by  the 
Commission,  while  respecting  the  right  of  the  Member  States  to  approve  projects  of 
common  interest  related  to  their  territory.  According  to  analysis  carried  out  in  the 
accompanying  impact  assessment,  the  number  of  such  projects  is  estimated  at  some 
100 in the field of electricity and 50 in the field of gas. 

(18)  Projects of common interest should be implemented as quickly as possible and should 
be  closely  monitored  and  evaluated,  while  keeping  the  administrative  burden  for 
projects  promoters  to  a  minimum.  The  Commission  should  nominate  European 
coordinators for projects facing particular difficulties. 

(19)  Authorisation  procedures  should  not  lead  to  administrative  burdens  which  are 
disproportionate  to  the  size  or  complexity  of  a  project,  nor  create  barriers  to  the 
development  of  the  trans-European  networks  and  market  access.  The  European 
Council of 19 February 2009 highlighted the need to identify and remove barriers to 
investment,  including  by  means  of  streamlining  of  planning  and  consultation 
procedures. These conclusions were reinforced by the European Council of 4 February 
2011 which again underlined the importance to streamline and improve authorisation 
procedures while respecting national competences. 

(20)  Projects  of  common  interest  should  be  given  "priority  status"  at  national  level  to 
ensure rapid administrative treatment. Projects of common interest shall be considered 
by competent authorities as being in public interest. Authorisation should be given to 
projects which have an adverse impact on the environment, for reasons of overriding 
public  interest,  when  all  the  conditions  provided  for  under  Directives  92/43/EC  and 
2000/60/EC are met. 

(21)  The  establishment  of  a  single  competent  authority  at  national  level  integrating  or 
coordinating  all  permit  granting  procedures  ("one-stop  shop")  should  reduce 
complexity, increase efficiency and transparency and help enhance cooperation among 
Member States. 

EN 

12 

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(22)  Despite  the  existence  of  established  standards  for  the  participation  of  the  public  in 
environmental decision-making procedures, additional measures are needed to ensure 
highest  possible  standards  of  transparency  and  public  participation  for  all  relevant 
issues in the permit granting process for projects of common interest. 

(23)  The  correct  and  coordinated  implementation  of  Council  Directive  85/337/EC  as 
amended and of the Aarhus and Espoo Conventions should ensure the harmonisation 
of  the  main  principles  for  the  assessment  of  environmental  effects,  including  in  a 
cross-border context. Member States should coordinate their assessments for projects 
of common interest, and provide for joint assessments, where possible. 

(24)  Given  the  urgency  to  develop  energy  infrastructures,  the  simplification  of  permit 
granting  procedures  must  be  accompanied  by  a  clear  deadline  for  the  decision  to  be 
taken by the respective competent authorities regarding the construction of the project. 
This  time  limit  should  stimulate  a  more  efficient  definition  and  handling  of 
procedures, and should under no circumstances compromise on the high standards for 
the protection of the environment and public participation. 

(25)  This  Regulation,  in  particular  the  provisions  on  permit  granting,  public  participation 
and implementation of projects of common interest, should apply without prejudice to 
international  and  Union  legislation,  including  provisions  to  protect  the  environment 
and human health, and provisions adopted under the Common Fisheries and Maritime 
Policy. 

(26)  The assessment of the costs and benefits of an infrastructure project on the basis of a 
harmonised  methodology  for  energy  system-wide  analysis,  in  the  framework  of  the 
ten-year  network  development  plans  prepared  by  the  European  Networks  of 
Transmission  System  Operators  according  to  Regulation  (EC)  No  714/2009  of  the 
European Parliament and of the Council of 13 July 2009 on conditions for access to 
the  network  for  cross-border  exchanges  in  electricity27  and  Regulation  (EC)  No 
715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions 
for access to the natural gas transmission networks28, and reviewed by the Agency on 
the Cooperation of Energy Regulators according to Regulation (EC) No 713/2009 of 
the European Parliament and of the Council of 13 July 2009 establishing an Agency 
for the Cooperation of Energy Regulators29, should be the basis for the discussion on 
the appropriate allocation of costs. 

(27) 

In  an  increasingly  integrated  internal  energy  market,  clear  and  transparent  rules  for 
cost allocation across borders are necessary in order to accelerate investment in cross-
border  infrastructure.  The  European  Council  of  4  February  2011  recalled  the 
importance  to  promote  a  regulatory  framework  attractive  to  investment  in  networks, 
with  tariffs  set  at  levels  consistent  with  financing  needs  and  the  appropriate  cost 
allocation 
investments,  while  enhancing  competition  and 
competitiveness,  notably  of  European  industry,  and  taking  account  of  the  impact  on 
consumers. 

for  cross-border 

27 
28 
29 

OJ L 211, 14.8.2009, p.15 
OJ L 211, 14.8.2009, p.36 
OJ L 211, 14.8.2009, p.1 

EN 

13 

   EN 

 
                                                 
(28)  The  existing  internal  energy  market  legislation  requires  that  tariffs  for  access  to  gas 
and  electricity  networks  shall  provide  appropriate  incentives  for  investment.  When 
applying the internal energy market legislation, national regulatory authorities should 
ensure that incentives for projects of common interest, including long-term incentives, 
are commensurate with the level of specific risk of the project. This applies notably in 
electricity to innovative transmission technologies to allow for large scale integration 
of  renewable  energy,  of  distributed  energy  resources  or  of  demand  response  in 
interconnected  networks,  and  to  gas  transmission  infrastructure  offering  advanced 
capacity or additional flexibility to the market to allow for short-term trading or back-
up supply in case of supply disruptions. 

(29)  The European Energy Programme for Recovery (EEPR)30 has demonstrated the added 
value  of  leveraging  private  funding  through  significant  Union  financial  aid  to  allow 
implementation  of  projects  of  European  significance.  The  European  Council  of  4 
February 2011 recognised that some energy infrastructure projects may require limited 
public finance to leverage private funding. In the light of the economic and financial 
crisis  and  budgetary  constraints,  targeted  support,  through  grants  and  financial 
instruments,  should  be  developed  under  the  next  multi-annual  financial  framework, 
which  will  attract  new  investors  into  the  energy  infrastructure  priority  corridors  and 
areas, while keeping the budgetary contribution of the Union to a minimum. 

(30)  Projects of common interest in the fields of electricity, gas and carbon dioxide should 
be  eligible  to  receive  Union  financial  assistance  for  studies  and,  under  certain 
conditions, for works under the proposed Regulation for a Connecting Europe Facility 
(CEF Regulation), either in the form of grants or in the form of innovative financial 
instruments. This will ensure tailor-made support can be provided to those projects of 
common  interest  which  are  not  viable  under  the  existing  regulatory  framework  and 
market  conditions.  Such  financial  assistance  should  ensure  the  necessary  synergies 
with  funding  from  instruments  under  other  Union  policies.  In  particular,  the 
Connecting Europe Facility will finance energy infrastructure of European relevance, 
while  Structural  Funds  will  finance  smart  energy  distribution  networks  of  local  or 
regional importance. The two sources of funding will thereby complement each other. 

(31)  Decision No 1364/2006/EC should therefore be repealed. 

(32)  Since the objective of this Regulation, namely the development and interoperability of 
trans-European  energy  networks  and  connection  to  such  networks,  cannot  be 
sufficiently  achieved  by  the  Member  States  and  can  therefore  be  better  achieved  at 
Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the  principle  of 
subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance 
with the principle of proportionality, as set out in that Article, this Regulation does not 
go beyond what is necessary in order to achieve that objective. 

30 

OJ L 200, 31.7.2009, p.31 

EN 

14 

   EN 

 
                                                 
HAVE ADOPTED THIS REGULATION: 

CHAPTER I – GENERAL PROVISIONS 

Article 1 
Subject matter and scope 

1. 

This  Regulation 
interoperability  of  priority  corridors  and  areas  of 
infrastructure set out in Annex I. 

lays  down  guidelines 

the 

for 

timely  development  and 
trans-European  energy 

2. 

In particular, this Regulation: 

(a) 

lays down rules to identify projects of common interest necessary to implement 
these  priority  corridors  and  areas  and  falling  under  the  energy  infrastructure 
categories in electricity, gas, oil, and carbon dioxide set out in Annex II; 

(b) 

facilitates  the  timely  implementation  of  projects  of  common  interest  by 
accelerating permit granting and enhancing public participation; 

(c)  provides  rules  for  cross-border  allocation  of  costs  and  risk-related  incentives 

for projects of common interest; 

(d)  determines conditions for eligibility of projects of common interest for Union 
financial  assistance  under  [Regulation  of  the  European  Parliament  and  the 
Council establishing the Connecting Europe Facility]. 

Article 2 
Definitions 

For  the  purpose  of  this  Regulation,  in  addition  to  the  definitions  provided  for  in  Directives 
2009/28/EC,  2009/72/EC  and  2009/73/EC,  Regulations  (EC)  No  713/2009,  (EC)  No 
714/2009, and (EC) No 715/2009, the following definitions shall apply: 

1. 

2. 

3. 

'energy infrastructure' means any physical equipment designed to allow transmission 
and  distribution  of  electricity  or  gas,  transportation  of  oil  or  carbon  dioxide,  or 
storage of electricity or gas, which is located within the Union or linking the Union 
and one or more third countries; 

'comprehensive decision' means the decision taken by a competent authority to grant 
or refuse authorisation to build the energy infrastructure relating to a project, without 
prejudice  to  any  subsequent  decisions  taken  in  the  context  of  granting  access  to 
property, or administrative or judicial appeal procedures thereafter; 

'project' means one or several lines, pipelines, facilities, equipments, installations and 
related infrastructure categories as set out in Annex II, aiming at building new energy 
infrastructure or reinforcing or refurbishing existing energy infrastructure; 

EN 

15 

   EN 

 
4. 

5. 

1. 

2. 

3. 

4. 

'project  of  common  interest'  means  a  project,  which  is  necessary  to  implement  the 
energy infrastructure priority corridors and areas set out in Annex I; 

'project promoter' means: 

(a) 

(b) 

transmission system operator or distribution system operator or other operator 
or investor developing a project of common interest; or 

if  there  are  several  transmission  system  operators,  distribution  system 
operators, other operators, investors, or any group thereof, the entity with legal 
personality  under  the  applicable  national  law,  which  has  been  designated  by 
contractual arrangement between them and which has the capacity to undertake 
legal  obligations  and  assume  financial  liability  on  behalf  of  the  parties  to  the 
contractual arrangement. 

CHAPTER II – PROJECTS OF COMMON INTEREST 

Article 3 
Identification of projects of common interest 

The  Commission  shall  establish  a  Union-wide  list  of  projects  of  common  interest. 
The  list  shall  be  reviewed  and  updated  as  necessary  every  two  years.  The  first  list 
shall be adopted by 31 July 2013 at the latest. 

For  the  purpose  of  identifying  projects  of  common  interest,  the  Commission  shall 
establish a Regional Group ("Group") as defined in section 1 of Annex III based on 
each priority corridor and area and their respective geographical coverage as set out 
in Annex I. 

Each Group shall draw up its proposed list of projects of common interest according 
to the process set out in section 2 of Annex III, according to the contribution of each 
project to implementing the energy infrastructure priority corridors and areas set out 
in Annex I and according to their fulfilment of the criteria set out in Article 4. Each 
individual proposal for a project shall require the approval of the Member State(s), to 
the territory of which the project relates. 

For electricity and gas projects falling under the categories set out in points 1 and 2 
of Annex II, each Group shall, at the latest six months before the adoption date of the 
Union-wide  list  referred  to  in  paragraph  1,  submit  its  proposed  list  of  projects  of 
common  interest  to  the  Agency  for  the  Cooperation  of  Energy  Regulators 
("Agency"). 

For  oil  and  carbon  dioxide  transport  projects  falling  under  the  categories  set  out  in 
points  3  and  4  of  Annex  II,  each  Group  shall,  at  the  latest  six  months  before  the 
adoption date of the Union-wide list referred to in paragraph 1, submit its proposed 
list of projects of common interest to the Commission. 

EN 

16 

   EN 

 
5. 

6. 

7. 

For electricity and gas projects falling under the categories set out in points 1 and 2 
of Annex II, the Agency shall submit, within two months from the date of receipt of 
the proposed lists of projects of common interest set out in the first subparagraph of 
paragraph  4,  an  opinion  to  the  Commission  on  the  proposed  lists  of  projects  of 
common  interest,  in  particular  taking  into  account  the  consistent  application  of  the 
criteria set out in Article 4 across the Groups, and the results of the analysis carried 
out  by  the  ENTSOs  for  Electricity  and  Gas  in  accordance  with  point  2.6  of  Annex 
III. 

For  oil  and  carbon  dioxide  transport  projects  falling  under  the  categories  set  out  in 
points  3  and  4  of  Annex  II,  the  Commission  shall  evaluate  the  application  of  the 
criteria set out in Article 4. For carbon dioxide projects falling under the category set 
out in point 4 of Annex II, the Commission shall also take into account the potential 
for future extension to include additional Member States. 

Following the Commission decision for adoption referred to in paragraph 1, projects 
of common interest shall become an integral part of the relevant regional investment 
plans pursuant Article 12 of Regulations (EC) No 714/2009 and (EC) No 715/2009 
and of the relevant national ten-year network development plans pursuant Article 22 
of  Directives  72/2009/EC  and  73/2009/EC  and  other  national  infrastructure  plans 
concerned,  as  appropriate.  The  projects  shall  be  conferred  the  highest  possible 
priority within each of these plans. 

Article 4 
Criteria for projects of common interest 

1. 

Projects of common interest shall meet the following general criteria: 

(a) 

the  project  is  necessary  for  the  implementation  of  the  energy  infrastructure 
priority corridors and areas set out in Annex I; and 

(b) 

the project displays economic, social and environmental viability; and 

(c) 

the project involves at least two Member States, either by directly crossing the 
border  of  one  or  more  Member  States  or  by  being  located  on  the  territory  of 
one  Member  State  and  having  a  significant  cross-border  impact  as  set  out  in 
point 1 of Annex IV; 

2. 

In addition, the following specific criteria shall apply to projects of common interest 
falling under specific energy infrastructure categories: 

(a) 

concerning  electricity  transmission  and  storage  projects  falling  under  the 
categories set out in points 1(a) to (d) of Annex II, the project shall contribute 
significantly to at least one of the following specific criteria: 

– 

– 

market integration, competition and system flexibility; 

sustainability, inter alia through transmission of renewable generation to 
major consumption centres and storage sites; 

– 

interoperability and secure system operation; 

EN 

17 

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(b) 

concerning gas projects falling under the categories set out in point 2 of Annex 
II,  the  project  shall  contribute  significantly  to  at  least  one  of  the  following 
specific criteria: 

– 

– 

– 

market integration, interoperability and system flexibility; 

security  of  supply,  inter  alia  through  diversification  of  supply  sources, 
supplying counterparts and routes; 

competition,  inter  alia  through  diversification  of  supply  sources, 
supplying counterparts and routes; 

– 

sustainability; 

(c) 

concerning electricity smart grid projects falling under the category set out in 
point  1(e)  of  Annex  II,  the  project  shall  contribute  significantly  to  the 
following specific functions: 

– 

– 

– 

– 

– 

– 

integration  and  involvement  of  network  users  with  new  technical 
requirements with regard to their electricity supply and demand; 

efficiency and interoperability of electricity transmission and distribution 
in day-to-day network operation; 

network security, system control and quality of supply; 

optimised planning of future cost-efficient network investments; 

market functioning and customer services; 

involvement of users in the management of their energy usage; 

(d) 

concerning oil transport projects falling under the categories set out in point 3 
of  Annex  II,  the  project  shall  contribute  significantly  to  the  following  three 
specific criteria: 

– 

– 

security of supply reducing single supply source or route dependency; 

efficient  and  sustainable  use  of  resources  through  mitigation  of 
environmental risks; 

– 

interoperability; 

(e) 

concerning  carbon  dioxide  transport  projects  falling  under  the  categories  set 
out  in  point  4  of  Annex  II,  the  project  shall  contribute  significantly  to  the 
following three specific criteria: 

– 

– 

avoidance  of  carbon  dioxide  emissions  at  low  cost  while  maintaining 
security of energy supply; 

increase the resilience and security of carbon dioxide transport; 

EN 

18 

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3. 

4. 

1. 

2. 

3. 

4. 

– 

efficient  use  of  resources,  by  enabling  the  connection  of  multiple  CO2 
sources  and  storage  sites  via  common  infrastructure  and  minimising 
environmental burden and risks. 

Concerning projects falling under the categories set out in points 1 to 3 of Annex II, 
the  criteria  listed  in  this Article  shall  be  assessed  in  accordance  with  the  indicators 
set out in points 2 to 5 of Annex IV. 

When ranking projects contributing to the implementation of the same priority, due 
consideration shall also be given to the urgency of each proposed project in order to 
meet the energy policy targets of market integration and competition, sustainability 
and security of supply, the number of Member States affected by each project, and its 
complementarity  with  regard  to  other  proposed  projects.  For  projects  falling  under 
the category set out in point 1(e) of Annex II, due consideration shall also be given to 
the number of users affected by the project, the annual energy consumption and the 
share  of  generation  from  non  dispatchable  resources  in  the  area  covered  by  these 
users. 

Article 5 
Implementation and monitoring 

Project  promoters  shall  implement  projects  of  common  interest  according  to  an 
implementation  plan  including  a  timetable  for  feasibility  and  design  studies, 
regulatory  approval,  construction  and  commissioning,  and  the  permit  granting 
schedule  referred  to  in  Article  11(3).  Transmission  system  operators,  distribution 
system operators or other operators shall operate projects of common interest in their 
area. 

The Agency and the Groups shall monitor the progress achieved in implementing the 
projects  of  common  interest.  The  Groups  may  request  additional  information 
provided in accordance with paragraphs 3, 4 and 5, verify the provided information 
on site and convene meetings with the relevant parties. The Groups may also request 
the Agency to take measures to facilitate the implementation of projects of common 
interest. 

By the 31 March of each year following the year of selection as project of common 
interest  pursuant  to  Article  4,  project  promoters  shall  submit  an  annual  report,  for 
each project falling under the categories set out in points 1 and 2 of Annex II, to the 
Agency or, for projects falling under the categories set out in points 3 and 4 of Annex 
II, to the respective Group. This report shall detail: 

(a) 

the progress achieved for the development, construction and commissioning of 
the project, notably with regard to permit granting and consultation procedures; 

(b)  where  relevant,  delays  compared  to  the  implementation  plan  and  other 

difficulties encountered. 

Within three months of the receipt of the annual reports, the Agency shall submit to 
the Groups a consolidated report for the projects of common interest falling under the 
categories set out in points 1 and 2 of Annex II, evaluating the progress achieved and 
proposing,  where  appropriate,  measures  to  overcome  the  delays  and  difficulties 

EN 

19 

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5. 

6. 

encountered. The evaluation shall also include, in accordance with the provisions of 
Article 6(8) and (9) of Regulation (EC) No 713/2009, the consistent implementation 
of  the  Union-wide  network  development  plans  with  regard  to  the  energy 
infrastructure priority corridors and areas set out in Annex I. 

Each year, the concerned competent authorities referred to in Article 9 shall, at the 
meeting following receipt of the annual reports referred to in paragraph 3, report to 
the respective Group on the status and, where relevant, delays in the implementation 
of projects of common interest located on their respective territory. 

If the commissioning of a  project  of  common interest is delayed by more than two 
years compared to the implementation plan without sufficient justification: 

(a)  The project promoter of that project shall accept investments by one or several 
other operators or investors to implement the project. The system operator, in 
whose  area  the  investment  is  located,  shall  provide  the  implementing 
operator(s) or investor(s) with all information needed to realise the investment, 
shall connect new assets to the transmission network and shall generally make 
its best efforts to facilitate the implementation of the investment and the secure, 
reliable  and  efficient  operation  and  maintenance  of  the  project  of  common 
interest. 

(b) 

the Commission may launch a call for proposals open to any project promoter 
to build the project according to an agreed timeline. 

7. 

A project of common interest may be removed from the Union-wide list of projects 
of common interest according to the procedure set in the second sentence of Article 
3(1) if: 

(a)  The  energy  system-wide  cost-benefit  analysis  carried  out  by  the  ENTSOs  in 
accordance  with  point  6  of  Annex  III  does  not  yield  a  positive  result  for  the 
project; 

(b)  The project is no longer included in the ten-year network development plan; 

(c)  The  inclusion  in  the  list  referred  to  in  paragraph  1  of  Article  3  was  based  on 

incorrect information which was a determining factor for the decision; 

(d)  The project does not comply with existing Union legislation. 

Projects,  which  are  withdrawn  from  the  Union-wide  list,  lose  all  rights  and 
obligations arising from this Regulation for projects of common interest. This article 
shall  be  without  prejudice  to  any  Union  financing  paid  to  the  project  prior  to  the 
withdrawal decision. 

Article 6 
European coordinators 

1. 

When  a  project  of  common 
implementation 
difficulties, the Commission may designate a European coordinator for a period of up 
to one year renewable twice. 

interest  encounters  significant 

EN 

20 

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2. 

The European coordinator shall fulfil the following tasks: 

(a)  promote  the  project(s),  for  which  he  or  she  has  been  designated  European 
coordinator  and  the  cross-border  dialogue  between  the  project  promoters  and 
all concerned stakeholders; 

(b) 

(c) 

(d) 

assist  all  parties  as  necessary  in  consulting  concerned  stakeholders  and 
obtaining necessary permits for the project(s); 

ensure  that  appropriate  support  and  strategic  direction  by  the  Member  States 
concerned  are  provided  for  the  preparation  and  implementation  of  the 
project(s); 

submit every year a report to the Commission on the progress of the project(s) 
and on any difficulties and obstacles which are likely to significantly delay the 
commissioning date of the project(s). The Commission shall transmit the report 
to the concerned Groups and the European Parliament. 

The European coordinator shall be chosen on the basis of his or her experience with 
regard to the specific tasks assigned to him or her for the concerned project(s). 

The  decision  designating  the  European  coordinator  shall  specify  the  terms  of 
reference detailing the duration of the mandate, the specific tasks and corresponding 
deadlines  and  the  methodology  to  be  followed.  The  coordination  effort  shall  be 
proportionate to the complexity and estimated costs of the project(s). 

The  Member  States  concerned  shall  cooperate  with  the  European  coordinator  in 
his/her execution of the tasks referred to in paragraph 2 and 4. 

CHAPTER III – Permit granting and public participation 

Article 7 
Regime of common interest 

For  the  purpose  of  accelerating  permit  granting  procedures  and  enhancing  public 
participation,  the  provisions  of  this  Chapter  shall  be  applicable  to  all  projects  of 
common interest. 

Article 8 
‘Priority status’ of projects of common interest 

Projects  of  common  interest  shall  be  allocated  the  status  of  the  highest  national 
significance possible and be treated as such in permit granting procedures, where and 
in the manner such treatment is provided for in national legislation applicable to the 
corresponding type of energy infrastructure. 

3. 

4. 

5. 

1. 

1. 

EN 

21 

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2. 

3. 

4. 

5. 

1. 

2. 

The adoption of the Union-wide list of projects of common interest shall establish the 
public  interest  and  necessity  of  these  projects  within  the  Member  States  concerned 
and shall be acknowledged as such by all parties concerned. 

For the purpose of ensuring efficient administrative processing of the files related to 
projects  of  common  interest,  project  promoters  and  all  authorities  concerned  shall 
ensure that the most preferential treatment possible is given to these files as regards 
the resources allocated. 

With the objective of meeting the time limits set out in Article 11 and reducing the 
administrative  burden  for  the  completion  of  projects  of  common  interest,  Member 
States  shall,  within  nine  months  from  the  entry  into  force  of  this  Regulation,  take 
measures  to  streamline  the  environmental  assessment  procedures.  These  measures 
shall be without prejudice to obligations resulting from Union legislation. 

The Commission shall, within three months of the entry into force of this Regulation, 
issue  guidance  to  support  Member  States  in  defining  adequate  measures  and  to 
ensure  the  coherent  application  of  environmental  assessment  procedures  required 
under EU legislation for projects of common interest. 

With  regard  to  the  environmental  impacts  addressed  in  Article  6(4)  of  Directive 
92/43/EC  and  Article  4(7)  of  Directive  2000/60/EC,  projects  of  common  interest 
shall  be  considered  as  being  of  public  interest,  and  may  be  considered  as  being  of 
"overriding  public  interest",  provided  that  all  the  conditions  foreseen  in  these 
Directives are fulfilled. 

Should  the  opinion  of  the  Commission  be  required  in  accordance  with  Directive 
92/43/EC, the Commission and the competent  authority pursuant to Article 9, shall 
ensure that the decision with regard to the "overriding public interest" of a project is 
taken within the time limit pursuant to paragraph 1 of Article 11. 

Article 9 
Organisation of the permit granting process 

Within six months of the entry into force of this Regulation, each Member State shall 
designate one national competent authority which shall be responsible for facilitating 
and coordinating the permit granting process for projects of common interest and for 
the implementation of the relevant tasks of the permit granting process as defined in 
this Chapter. 

The competent authority shall issue, without prejudice to relevant requirements under 
Union and international legislation, the comprehensive decision within the time limit 
referred to in Article 11(1) according to one of the following schemes: 

(a) 

integrated  scheme:  the  comprehensive  decision  issued  by  the  competent 
authority is the sole legally binding decision resulting from the statutory permit 
granting procedure. Where other authorities are concerned by the project, these 
may, in accordance with national legislation, give their opinion as input to the 
procedure, which shall be taken into account by the competent authority. 

EN 

22 

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(b) 

coordinated  scheme:  The  comprehensive  decision  may  encompass  multiple 
individual  legally  binding  decisions  issued  by  the  Competent  Authority  and 
other authorities concerned. The competent authority shall establish, on a case-
by-case  basis,  a  reasonable  time  limit  within  which  the  individual  decisions 
must  be  issued.  The  competent  authority  may  take  an  individual  decision  on 
behalf of another national authority concerned, if the decision by that authority 
is  not  delivered  within  the  time  limit  and  if  the  delay  cannot  be  adequately 
justified.  The  competent  authority  may  overrule  an  individual  decision  of 
another  national  authority,  if  it  considers  that  the  decision  is  not  sufficiently 
substantiated with regard to the underlying evidence presented by the authority 
concerned. The competent authority shall ensure that the relevant requirements 
under international and Union legislation are respected and must duly justify its 
decision. 

If  a  project  of  common  interest  requires  decisions  to  be  taken  in  two  or  more 
Member States, the respective competent authorities shall take all necessary steps for 
efficient  and  effective  cooperation  and  coordination  among  themselves,  including 
compliance  with  the  Espoo  Convention  and  the  provisions  referred  to  in  11(3). 
Member  States  shall  endeavour  to  provide  for  joint  procedures,  particularly  with 
regard to the assessment of environmental impacts. 

Member States shall endeavour to ensure that appeals challenging the substantive or 
procedural  legality  of  a  comprehensive  decision  are  handled  in  the  most  efficient 
way possible. 

Article 10 
Transparency and public participation 

To  increase  transparency  for  all  stakeholders  concerned,  the  competent  authority 
shall, within nine months of the entry into force of this Regulation, publish a manual 
of  procedures  for  the  permit  granting  process  applicable  to  projects  of  common 
interest. The manual shall be updated as necessary and made available to the public. 
The manual shall at least include the information specified in point 1 of Annex VI. 

Without prejudice to any requirements under the Aarhus and Espoo Conventions and 
relevant  Union  legislation,  all  parties  involved  in  the  permit  granting  process  shall 
follow the principles for public participation set out in point 2 of Annex VI. 

The  project  promoter  shall,  within  three  months  of  the  start  of  the  permit  granting 
process pursuant to paragraph 1(a) of Article 11, elaborate and submit a concept for 
public participation to the competent authority. The competent authority shall request 
modifications or approve the concept for public participation within one month. The 
concept shall at least include the information specified in point 3 of Annex VI. 

At  least  one  public  consultation  shall  be  carried  out  by  the  project  promoter,  or, 
where  this  is  laid  down  by  national  legislation,  by  the  competent  authority,  before 
submission  of  the  application  file  to  the  competent  authority  pursuant  to  paragraph 
1(a)  of  Article  11.  The  public  consultation  shall  inform  stakeholders  referred  to  in 
point  2(a)  of  Annex  VI  about  the  project  at  an  early  stage  and  identify  the  most 
suitable  location  or  trajectory  and  the  relevant  issues  to  be  addressed  in  the 

3. 

4. 

1. 

2. 

3. 

4. 

EN 

23 

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5. 

6. 

7. 

application file. The minimum modalities of this public consultation are specified in 
point  4  of  Annex  VI.  A  report  summarising  the  results  of  activities  related  to  the 
participation  of  the  public  prior  to  the  submission  of  the  application  file  shall  be 
prepared by the project promoter and submitted together with the application file to 
the  competent  authority,  which  shall  take  due  account  of  these  results  when  taking 
the comprehensive decision. 

For  projects  crossing  the  border  of  two  or  more  Member  States,  the  public 
consultations pursuant to paragraph 4 in each of the Member States concerned shall 
take place within a delay of no more than two months from the start date of the first 
public consultation in one of these Member States. 

For  projects  likely  to  have  significant  adverse  cross-border  impacts  in  one  or  more 
neighbouring  Member  States,  where  Article  7  of  Directive  85/337/EEC  and  the 
Espoo Convention are applicable, the relevant information shall be made available to 
the  competent  authority  of  the  neighbouring  Member  State(s).  The  competent 
authority  of  the  neighbouring  Member  State(s)  shall  indicate  whether  it  wishes  to 
participate in the relevant public consultation procedures. 

The  project  promoter,  or,  where  national  legislation  so  provides,  the  competent 
authority,  shall  establish  and  regularly  update  a  project  website  to  publish  relevant 
information about the project, which shall be linked to the Commission website and 
which shall satisfy the requirements specified in point 5 of Annex VI. Commercially 
sensitive information shall be kept confidential. 

Project  promoters  shall,  in  addition,  publish  relevant  information  by  other 
appropriate information means, to which the public has open access. 

Article 11 
Duration and implementation of the permit granting process 

1. 

The duration of the permit granting process shall consist of two phases and shall not 
exceed a period of three years: 

(a) 

the  pre-application  procedure,  covering  the  period  between  the  start  of  the 
permit granting process and the acceptance of the submitted application file by 
the competent authority, shall not exceed two years. 

For  the  purpose  of  establishing  the  start  of  the  permit  granting  process,  the 
project  promoter(s)  shall  notify  the  project  to  the  competent  authority  of  the 
Member  State(s)  concerned  in  written  form,  and  shall  include  a  reasonably 
detailed outline of the project. No later than two weeks following the receipt of 
the  notification,  the  competent  authority  shall  accept  or,  if  it  considers  the 
project  as  not  mature  enough  to  enter  the  permit  granting  process,  refuse  the 
notification in written form. In case of a refusal, the competent authority shall 
justify its decision. The date of signature of the acceptance of the notification 
by  the  competent  authority  shall  serve  as  the  start  of  the  permit  granting 
process. Where two or more Member States are concerned, the acceptance of 
the  notification  by  the  last  competent  authority  concerned  shall  serve  as  the 
date of the start of the permit granting process. 

EN 

24 

   EN 

 
2. 

3. 

4. 

5. 

(b)  The  statutory  permit  granting  procedure,  covering  the  period  from  the 
acceptance of the submitted application file until the competent authority takes 
a comprehensive decision, shall not exceed one year. Member States may set 
an earlier date for the time-limit if considered appropriate. 

Within one month of the start of the permit granting process, pursuant to paragraph 
1(a),  the  competent  authority  shall  identify,  in  close  cooperation  with  the  other 
authorities concerned, the scope of material and level of detail of information to be 
submitted  by  the  project  promoter,  as  part  of  the  application  file,  to  apply  for  the 
comprehensive  decision.  The  checklist  referred  to  in  point  1(e)  of  Annex  VI  shall 
serve as a basis for this identification. At least one meeting between the competent 
authority and the project promoter, and, if considered appropriate by the competent 
authority, other authorities and stakeholders concerned shall take place to this aim. A 
detailed application outline, which shall include the results of this meeting, shall be 
transmitted to the project promoter and be made available to the public no later than 
one month after the meeting. 

Within three months of the start of the permit granting process pursuant to paragraph 
1(a),  the  competent  authority  shall  elaborate,  in  close  cooperation  with  the  project 
promoter  and  other  authorities  concerned  and  taking  into  account  the  results  of  the 
activities carried out under paragraph 2, a detailed schedule for the permit granting 
process, identifying at minimum the following: 

(a) 

the decisions and opinions to be obtained; 

(b) 

the authorities, stakeholders, and the public likely to be concerned; 

(c) 

the individual stages of the procedure and their duration; 

(d)  major  milestones  to  be  accomplished  and  their  deadlines  in  view  of  the 

comprehensive decision to be taken,; 

(e) 

the resources planned by the authorities and possible additional resource needs. 

For projects crossing the border between two or more Member States, the competent 
authorities of the Member States concerned shall align their timetables and elaborate 
a joint schedule. 

The  project  promoter  shall  ensure  the  completeness  and  adequate  quality  of  the 
application file and seek the competent authority's opinion on this as early as possible 
during the pre-application procedure. The project promoter shall cooperate with the 
competent  authority  to  meet  deadlines  and  comply  with  the  detailed  schedule  as 
defined in paragraph 3. 

Within one month of the receipt of the application file, the competent authority shall, 
if necessary, make further requests regarding missing information to be submitted by 
the  project  promoter,  which  may  only  address  subjects  identified  in  the  detailed 
application outline. Within one month of the receipt of the complete application file, 
the  competent  authority  shall  accept  the  application  in  written  form.  Subsequently, 
requests  for  additional  information  may  only  be  made  if  these  are  justified  by  new 
circumstances and duly explained by the competent authority. 

EN 

25 

   EN 

 
6. 

7. 

1. 

2. 

3. 

4. 

5. 

6. 

In  the  event  of  an  expiry  of  the  time-limit  for  the  comprehensive  decision,  the 
competent authority shall present to the competent Group the measures taken or to be 
taken  to  conclude  the  permit  granting  process  with  the  least  possible  delay.  The 
Group may request the competent authority to report regularly on progress achieved 
in this regard. 

The  time  limits  in  the  above  provisions  shall  be  without  prejudice  to  obligations 
arising from international and Union legislation. 

CHAPTER IV – Regulatory treatment 

Article 12 
Energy system wide cost-benefit analysis 

Within  one  month  of  the  entry  into  force  of  this  Regulation,  the  ENTSO  for 
Electricity and the ENTSO for Gas shall submit to the Agency and the Commission 
their  respective  methodology,  including  on  network  and  market  modelling,  for  a 
harmonised  energy  system-wide  cost-benefit  analysis  at  Union-wide  level  for 
projects of common interest falling under the categories set out in points 1(a) to (d) 
and 2 of Annex II. The methodology shall be elaborated in line with the principles 
laid down in Annex V. 

Within  three  months  of  the  day  of  receipt  of  the  methodology,  the  Agency,  after 
formally  consulting  the  organisations  representing  all  relevant  stakeholders,  shall 
provide an opinion to the Commission on the methodology. 

Within  three  months  of  the  receipt  of  the  opinion  of  the  Agency,  the  Commission 
shall deliver an opinion on the methodology. 

Within three months of the day of receipt of the Commission's opinion, the ENTSO 
for  Electricity  and  the  ENTSO  for  Gas  shall  adapt  their  methodology  accordingly 
and submit it to the Commission for approval. 

Within  two  weeks  of  the  approval  by  the  Commission,  the  ENTSO  for  Electricity 
and the ENTSO for Gas shall publish the methodology on their websites. They shall 
transmit the corresponding input data sets as defined in point 1 of Annex V and other 
relevant network, load flow and market data in a sufficiently accurate form according 
to  national  legislations  and  relevant  confidentiality  agreements  to  the  Commission 
and the Agency, upon request. The data shall be valid at the date of the request. The 
Commission  and  the  Agency  shall  ensure  the  confidential  treatment  of  the  data 
received, by themselves and by any party  carrying out analytical work for them on 
the basis of those data. 

The  methodology  shall  be  updated  and  improved  regularly  by  following  the 
procedure laid down in paragraphs 1 to 5. The Agency, after formally consulting the 
organisations  representing  all  relevant  stakeholders  and  the  Commission,  may 
request such updates and improvements with due justification and timescales. 

EN 

26 

   EN 

 
7. 

8. 

1. 

2. 

3. 

4. 

The  methodology  shall  be  applied  to  the  cost-benefit  analysis  under  all  subsequent 
ten-year network development plans for electricity or gas developed by the ENTSOs 
for Electricity or Gas pursuant Article 8 of Regulation (EC) 714/2009 and Regulation 
(EC) 715/2009. 

By  31  December  2016,  the  ENTSO  for  Electricity  and  the  ENTSO  for  Gas  shall 
jointly submit to the Commission and the Agency common electricity and gas market 
and  network  model  including  both  electricity  and  gas  transmission  and  storage, 
covering the priority corridors and areas designated in Annex I and elaborated in line 
with  the  principles  laid  down  in  Annex  V.  After  approval  of  this  model  by  the 
Commission  according  to  the  procedure  set  out  in  paragraphs  2  to  4,  it  shall  be 
included in the methodology. 

Article 13 
Enabling investments with cross-border impacts 

The  investment  costs  related  to  a  project  of  common  interest  falling  under  the 
categories  set  out  in  points  1(a)  to  (d)  and  2  of  Annex  II  shall  be  borne  by  the 
transmission system operator(s) of the Member State(s) to which the project provides 
a net positive  impact, and be  paid for by network users through tariffs for  network 
access. 

The provisions of this Article shall not apply to projects of common interest having 
received an exemption pursuant Article 36 of Directive 2009/73/EC or Article 17 of 
Regulation (EC) 714/2009. 

National  regulatory  authorities  shall  take  into  account  actual  costs  incurred  by  a 
transmission system operator or other project promoter as a result of the investments 
and  cross-border  allocation  of  corresponding  costs  referred  to  in  paragraph  3  when 
fixing  or  approving  tariffs  in  accordance  with  Article  37(1)(a)  of  Directive 
2009/72/EC  and  Article  41(1)(a)  of  Directive  2009/73/EC,  insofar  as  these  costs 
correspond to those of an efficient and structurally comparable operator. 

Without  prejudice  to  investments  in  projects  of  common  interest  by  mutual 
agreement between the transmission system operators concerned, national regulatory 
authorities  shall  jointly  approve  investments  and  decide  on  the  cross-border 
allocation of corresponding costs for projects of common interest or packages thereof 
as well as the inclusion of investment costs in the transmission tariffs. 

The promoter(s) of a project of common interest falling under the categories set out 
in points 1(a) to (d) and 2 of Annex II shall keep all concerned national regulatory 
authorities regularly informed of the progress of that project and the identification of 
costs  and  impacts  associated  with  it.  As  soon  as  a  project  of  common  interest 
selected pursuant to Article 3 and falling under the categories set out in points 1(a) to 
(d)  and  2  of  Annex  II  has  reached  sufficient  maturity,  the  project  promoter  shall 
submit an investment request including a cross-border cost allocation, to the relevant 
national regulatory authorities, accompanied by the following: 

(a) 

a cost-benefit analysis on the basis of the methodology elaborated pursuant to 
Article 12; and 

EN 

27 

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(b) 

a  business  plan  evaluating  the  financial  viability  of  the  project,  including  the 
chosen  financing  solution,  and,  for  projects  of  common  interest  falling  under 
the category referred to in point 2 of Annex I, the results of market testing. 

If  a  project  is  promoted  by  several  operators  or  investors,  they  shall  submit  their 
request jointly. 

For  projects  contained  in  the  first  Union-wide  list  of  projects  of  common  interest, 
project promoters shall submit their request by 30 September 2013. 

A copy of each investment request shall be transmitted for information without delay 
by the national regulatory authorities to the Agency on receipt. 

The national regulatory authorities and the Agency shall preserve the confidentiality 
of commercially sensitive information. 

5. 

Within six months of the date on which the last request was received by the last of 
the  national  regulatory  authorities  concerned,  the  national  regulatory  authorities 
shall, after consultation of the project promoter(s) concerned, take a joint decision on 
the  allocation  of  investment  costs  to  be  borne  by  each  system  operator  for  that 
project,  as  well  as  their  inclusion  in  network  tariffs.  The  national  regulatory 
authorities may decide to allocate only part of the costs or to allocate costs among a 
package of several projects of common interest. 

In deciding to allocate costs across borders, the economic, social and environmental 
costs and benefits of the project(s) in the Member States concerned and the possible 
need for financial support shall be taken into account. 

The decision shall be notified, without delay, by the national regulatory authorities to 
the Agency, together with all the relevant information with respect to the decision. In 
particular, the information shall contain detailed reasons on the basis of which costs 
were allocated among Member States, such as the following: 

(a) 

an  evaluation  of  the  identified  impacts,  including  concerning  network  tariffs, 
on each of the concerned Member States; 

(b) 

an evaluation of the business plan referred to in paragraph 4(b); 

(c) 

regional  or  Union-wide  positive  externalities,  which  the  project  would 
generate; 

(d) 

the result of the consultation of the project promoter(s) concerned. 

The allocation decision shall be published. 

6. 

Where the national regulatory authorities concerned have not reached an agreement 
on  the  investment  request  within  six  months  of  the  date  on  which  the  request  was 
received  by  the  last  of  the  national  regulatory  authorities  concerned,  they  shall 
inform the Agency without delay. 

In  this  case  or  upon  a  joint  request  from  the  national  regulatory  authorities 
concerned,  the  decision  on  the  investment  request  including  cross-border  cost 

EN 

28 

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allocation referred to in paragraph 4 as well as the way the cost of the investments 
are reflected  in the tariffs shall  be taken  by the  Agency  within three  months of  the 
date of referral to the Agency. 

Before  taking  such  a  decision,  the  Agency  shall  consult  the  national  regulatory 
authorities concerned and the project promoter(s). The three-month period referred to 
in the second subparagraph may be extended by an additional period of two months 
where  further  information  is  sought  by  the  Agency.  That  additional  period  shall 
begin on the day following receipt of the complete information. 

The allocation decision shall be published. 

A  copy  of  all  decisions,  together  with  all  the  relevant  information  with  respect  to 
each  decision,  shall  be  notified,  without  delay,  by  the  Agency  to  the  Commission. 
That  information  may  be  submitted  in  aggregate  form.  The  Commission  shall 
preserve the confidentiality of commercially sensitive information. 

This  cost  allocation  shall  not  affect  the  right  of  transmission  system  operators  to 
apply and national regulatory authorities to approve charges for access to networks in 
accordance  with  Article  32  of  Directive  2009/72/EC  and  of  Directive  2009/73/EC, 
Article 14 of Regulation (EC) No 714/2009, and Article 13 of Regulation (EC) No 
715/2009.  

Article 14 
Incentives 

Where  a  project  promoter  incurs  higher  risks  for  the  development,  construction, 
operation or maintenance of a project of common interest falling under the categories 
set  out  in  points  1  and  2  of  Annex  II,  except  for  hydro-pumped  electricity  storage 
projects,  compared  to  the  risks  normally  incurred  by  a  comparable  infrastructure 
project, and where such risks are not covered under an exemption pursuant to Article 
36 of Directive 2009/73/EC or Article 17 of Regulation (EC) No 714/2009, national 
regulatory  authorities  shall  ensure  that  appropriate  incentives  are  granted  to  that 
project  when  applying  Article  37(8)  of  Directive  2009/72/EC,  Article  41(8)  of 
Directive 2009/73/EC, Article 14 of Regulation (EC) No 714/2009, and Article 13 of 
Regulation (EC) No 715/2009. 

The decision of the national regulatory authorities for granting such incentives shall 
consider  the  results  of  the  cost-benefit  analysis  on  the  basis  of  the  methodology 
elaborated  pursuant  to  Article  12  and  in  particular  the  regional  or  Union-wide 
positive  externalities  generated  by  the  project.  The  national  regulatory  authorities 
shall  further  analyse  the  specific  risks  incurred  by  the  project  promoter(s),  the  risk 
mitigation measures taken and the justification of this risk profile in view of the net 
positive impact provided by the project, when compared to a lower-risk alternative. 
Eligible  risks  shall  notably  include  risks  related  to  new  transmission  technologies, 
both onshore and offshore, risks related to under-recovery of costs and development 
risks. 

7. 

8. 

1. 

2. 

3. 

The incentive granted by the decision shall take account of the specific nature of the 
risk incurred and cover: 

EN 

29 

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(a) 

rules for anticipatory investment; or 

(b) 

rules for recognition of efficiently incurred costs before commissioning of the 
project; or 

(c) 

rules for providing additional return on the capital invested for the project; or 

(d) 

any other measure deemed necessary and appropriate. 

4. 

By 31 December 2013, the Agency shall issue guidance in accordance with Article 
7(2) of Regulation (EC) No 713/2009: 

5. 

6. 

1. 

2. 

(a) 

(b) 

regarding  the  incentives  referred  to  in  paragraph  1  on  the  basis  of  a 
benchmarking of best practice by national regulatory authorities; 

regarding  a  common  methodology  to  evaluate  the  incurred  higher  risks  of 
investments in electricity and gas transmission projects. 

By  31  July  2013,  each  national  regulatory  authority  shall  publish  its  methodology 
and  the  criteria  used  to  evaluate  investments  in  electricity  and  gas  transmission 
projects and the higher risks incurred by them. 

The  Commission  may  issue  guidelines  regarding  the  incentives  laid  down  in  this 
Article in accordance with Article 18(1) to (3) of Regulation (EC) No 714/2009 and 
Article 23 (1) of Regulation (EC) No 715/2009. 

CHAPTER V – Financing 

Article 15 
Eligibility of projects for Union financial assistance 

Projects of common interest falling under the categories set out in points 1, 2 and 4 
of Annex II are eligible for Union financial support in the form of grants for studies 
and  financial  instruments  in  accordance  with  the  provisions  of  [Regulation  of  the 
European Parliament and the Council establishing the Connecting Europe Facility]. 

Projects of common interest falling under the categories set out in points 1(a) to (d) 
and 2 of Annex II, except for hydro-pumped electricity storage projects, shall be also 
eligible  for  Union  financial  support  in  the  form  of  grants  for  works  in  accordance 
with  the  provisions  of  [Regulation  of  the  European  Parliament  and  the  Council 
establishing the Connecting Europe Facility], if they are carried out according to the 
procedure  referred  to  in  paragraph  6(b)  of  Article  5  or  if  they  fulfil  the  following 
criteria: 

(a) 

the project specific cost-benefit analysis pursuant to paragraph 4(a) of Article 
13  provides  evidence  concerning  the  existence  of  significant  positive 
externalities, such as security of supply, solidarity or innovation; and 

EN 

30 

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(b) 

(c) 

the project is commercially not viable according to the business plan and other 
assessments  carried  out,  notably  by  possible  investors  or  creditors.  The 
decision on incentives and its justification referred to in paragraph 3 of Article 
14  shall  be  taken  into  account  when  assessing  the  project's  commercial 
viability; and 

the  project  has  received  a  cross-border  cost  allocation  decision  pursuant  to 
Article 13 or, for projects having received an exemption pursuant to Article 36 
of  Directive  2009/73/EC  or  Article  17  of  Regulation  (EC)  No  714/2009,  an 
opinion from the competent national regulatory authorities and the Agency on 
the commercial viability of the project. 

3. 

Projects of common interest falling under the categories set out in points 1(e) and 4 
of Annex II shall be also eligible for Union financial support in the form of grants for 
works in accordance with the provisions of [Regulation of the European Parliament 
and  the  Council  establishing  the  Connecting  Europe  Facility],  if  the  concerned 
project  promoters  can  clearly  demonstrate  the  significant  positive  externalities 
generated by the projects and their lack of commercial viability. 

CHAPTER VI – Final provisions 

Article 16 
Reporting and evaluation 

Not later than 2017, the Commission shall publish a report on the implementation of projects 
of common interest. This report shall provide an evaluation of: 

(a) 

(b) 

(c) 

the  progress  achieved  for  the  development,  construction  and  commissioning  of 
projects of common interest selected pursuant Article 3, and, where relevant, delays 
in implementation and other difficulties encountered; 

the  funds  engaged  and  disbursed  by  the  Union  for  projects  of  common  interest  in 
accordance  with  the  provisions  of  [Regulation  of  the  European  Parliament  and  the 
Council establishing the Connecting Europe Facility], compared to the total value of 
funded projects of common interest; 

concerning the electricity and gas sectors, the evolution of the interconnection level 
between Member States, the corresponding evolution of energy prices, as well as the 
number of network system failure events, their causes and related economic cost; 

(d) 

concerning permit granting and public participation: 

– 

the  average  and  maximum  total  duration  of  authorisation  procedures  for 
projects  of  common  interest,  including  the  duration  of  each  step  of  the 
authorisation  procedure,  compared  to  the  timing  foreseen  by  the  initial  major 
milestones referred to in Article 11(3); 

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– 

the level of opposition faced by projects of common interest (notably number 
of  written  objections  during  the  public  consultation  process,  number  of  legal 
recourse actions); 

(e) 

concerning regulatory treatment: 

– 

– 

the number of projects of common interest having been granted a cross-border 
cost allocation decision pursuant to Article 13; 

the  number  and  type  of  projects  of  common  interest  having  received  specific 
incentives pursuant to Article 14; 

Article 17 
Information and publicity 

The  Commission  shall  establish  an  infrastructure  transparency  platform  easily  accessible  to 
the general public. This platform shall contain the following information: 

(a) 

(b) 

(c) 

general,  regularly  updated  information,  including  geographic  information,  for  each 
project of common interest; 

the implementation plan for each project of common interest; 

the  main  results  of  the  cost-benefit  analysis  on  the  basis  of  the  methodology 
elaborated pursuant Article 12 for the projects of common interest concerned, except 
for any commercially sensitive information. 

Article 18 
Transitional provisions 

This  Regulation  shall  not  affect  the  granting,  continuation  or  modification  of  financial  aid 
awarded  by  the  Commission  on  the  basis  of  calls  for  proposals  launched  under  Regulation 
(EC)  No  680/2007  of  the  European  Parliament  and  of  the  Council31  to  projects  listed  in 
Annexes I and III to Decision 1364/2006/EC or in view of the targets, based on the relevant 
categories of expenditure for TEN-E, as defined in Council Regulation (EC) No 1083/200632. 

Article 19 
Repeal 

Decision 1364/2006/EC is hereby repealed from 1 January 2014. No rights shall arise under 
this Regulation for projects listed in Annexes I and III to Decision 1364/2006/EC. 

31 
32 

OJ L 162, 22.6.2007, p. 1. 
OJ L 210, 31.7.2006, p. 25. 

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Article 20 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from 1 January 2013. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ENERGY INFRASTRUCTURE PRIORITY CORRIDORS AND AREAS 

ANNEX I 

This  Regulation  shall  apply  to  the  following  trans-European  energy  infrastructure  priority 
corridors and areas: 

1. 

(1) 

(2) 

(3) 

(4) 

2. 

(5) 

PRIORITY ELECTRICITY CORRIDORS 

Northern  Seas  offshore  grid  (“NSOG”):  integrated  offshore  electricity  grid  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 centres of 
consumption and storage and to increase cross-border electricity exchange. 

Member  States  concerned:  Belgium,  Denmark,  France,  Germany, 
Luxemburg, the Netherlands, Sweden, the United Kingdom; 

Ireland, 

North-South  electricity 
(“NSI  West 
Electricity”):  interconnections  between  Member  States  of  the  region  and  with 
Mediterranean third countries, notably to integrate electricity from renewable energy 
sources. 

in  Western  Europe 

interconnections 

Member  States  concerned:  Belgium,  France,  Germany,  Ireland,  Italy,  Luxembourg, 
Netherlands, Malta, Portugal, Spain, the United Kingdom; 

North-South  electricity  interconnections  in  Central  Eastern  and  South  Eastern 
Europe  ("NSI  East  Electricity"):  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,  Czech  Republic,  Cyprus,  Germany, 
Greece, Hungary, Italy, Poland, Romania, Slovakia, Slovenia; 

Baltic  Energy  Market  Interconnection  Plan  in  electricity  ("BEMIP  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 in the region; 

Member States concerned: Denmark, Estonia, Finland, Germany, Latvia, Lithuania, 
Poland, Sweden. 

PRIORITY GAS CORRIDORS 

("NSI  West  Gas"): 
North-South  gas 
interconnection  capacities  for  North-South  gas  flows  in  Western  Europe  to  further 
diversify routes of supply and increase short-term gas deliverability. 

in  Western  Europe 

interconnections 

Member  States  concerned:  Belgium,  France,  Germany,  Ireland,  Italy,  Luxembourg, 
Malta, the Netherlands, Portugal, Spain, the United Kingdom; 

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(6) 

(7) 

(8) 

3. 

(9) 

North-South  gas  interconnections  in  Central  Eastern  and  South  Eastern  Europe 
("NSI  East  Gas"):  regional  gas  connections  between  the  Baltic  Sea  region,  the 
Adriatic and Aegean Seas and the Black Sea, notably to enhance diversification and 
security of gas supply; 

Member  States  concerned:  Austria,  Bulgaria,  Cyprus,  Czech  Republic,  Germany, 
Greece, Hungary, Italy, Poland, Romania, Slovakia, Slovenia; 

Southern  Gas  Corridor  ("SGC"):  transmission  of  gas  from  the  Caspian  Basin, 
Central Asia, the Middle East and the Eastern Mediterranean Basin to the Union to 
enhance diversification of gas supply. 

Member  States  concerned:  Austria,  Bulgaria,  Czech  Republic,  Cyprus,  France, 
Germany, Hungary, Greece, Italy, Poland, Romania, Slovakia, Slovenia; 

Baltic Energy Market Interconnection Plan in gas ("BEMIP Gas"): infrastructure to 
end  the  isolation  of  the  three  Baltic  States  and  Finland  and  their  single  supplier 
dependency and to increase diversification of supplies in the Baltic Sea region; 

Member States concerned: Denmark, Estonia, Finland, Germany, Latvia, Lithuania, 
Poland, Sweden. 

PRIORITY OIL CORRIDOR 

Oil  supply  connections  in  Central  Eastern  Europe  ("OSC"):  interoperability  of  the 
oil  pipeline  network  in  Central  Eastern  Europe  to  increase  security  of  supply  and 
reduce environmental risks. 

Member  States  concerned:  Austria,  Czech  Republic,  Germany,  Hungary,  Poland, 
Slovakia. 

4. 

PRIORITY THEMATIC AREAS 

(10) 

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; 

(11) 

Electricity  highways:  first  electricity  highways  by  2020,  in  view  of  building  an 
electricity highways system across the Union; 

Member States concerned: all; 

(12) 

Cross-border  carbon  dioxide  network:  development  of  carbon  dioxide  transport 
infrastructure between Member States and with neighbouring third countries in view 
of the deployment of carbon dioxide capture and storage. 

Member States concerned: all. 

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ANNEX II 

ENERGY INFRASTRUCTURE CATEGORIES 

The  energy  infrastructure  categories  to  be  developed  in  order  to  implement  the  energy 
infrastructure priorities listed in Annex I are the following: 

(1) 

concerning electricity: 

(a)  high-voltage  overhead  transmission  lines,  if  they  have  been  designed  for  a 
voltage  of  220  kV  or  more,  and  underground  and  submarine  transmission 
cables, if they have been designed for a voltage of 150 kV or more; 

(b) 

(c) 

(d) 

(e) 

concerning in particular electricity highways; any physical equipment designed 
to  allow  transport  of  electricity  on  the  high  and  extra-high  voltage  level,  in 
view of connecting large amounts of electricity generation or storage located in 
one  or  several  Member  States  or  third  countries  with  large-scale  electricity 
consumption in one or several other Member States; 

electricity  storage  facilities  used  for  storing  electricity  on  a  permanent  or 
temporary  basis  in  above-ground  or  underground  infrastructure  or  geological 
sites,  provided  they  are  directly  connected  to  high-voltage  transmission  lines 
designed for a voltage of 110 kV or more; 

any equipment or installation essential for the systems defined in (a) to (c) to 
operate  safely,  securely  and  efficiently,  including  protection,  monitoring  and 
control systems at all voltage levels; 

any  equipment  or  installation,  both  at  transmission  and  medium  voltage 
distribution level, aiming at two-way digital communication, real-time or close 
to  real-time,  interactive  and  intelligent  monitoring  and  management  of 
electricity  generation,  transmission,  distribution  and  consumption  within  an 
electricity network in view of developing a network efficiently integrating the 
behaviour and actions of all users connected to it – generators, consumers and 
those  that  do  both  –  in  order  to  ensure  an  economically  efficient,  sustainable 
electricity system with low losses and high quality and security of supply and 
safety; 

(2) 

concerning gas: 

(a) 

transmission pipelines for the transport of natural gas and bio gas that form part 
of  a  network  which  mainly  contains  high-pressure  pipelines,  excluding  high-
pressure pipelines used for upstream or local distribution of natural gas, 

(b)  underground storage facilities connected to the above-mentioned high-pressure 

gas pipelines, 

(c) 

reception,  storage  and  regasification  or  decompression  facilities  for  liquefied 
natural gas (LNG) or compressed natural gas (CNG); 

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(d) 

any  equipment  or  installation  essential  for  the  system  to  operate  safely, 
securely and efficiently or to enable bi-directional capacity; 

(3) 

concerning oil: 

(a)  pipelines used to transport crude oil; 

(b)  pumping stations and storage facilities necessary for the operation of crude oil 

pipelines; 

(c) 

any  equipment  or  installation  essential  for  the  system  in  question  to  operate 
properly, securely and efficiently, including protection, monitoring and control 
systems and reverse-flow devices; 

(4) 

concerning carbon dioxide: 

(a)  dedicated  pipelines,  other  than  upstream  pipeline  network,  used  to  transport 
anthropogenic  carbon  dioxide  from  more  than  one  source,  i.e.  industrial 
installations  (including  power  plants)  that  produce  carbon  dioxide  gas  from 
combustion  or  other  chemical  reactions  involving  fossil  or  non-fossil  carbon-
containing  compounds,  for  the  purpose  of  permanent  geological  storage  of 
carbon dioxide pursuant to Directive 2009/31/EC; 

(b) 

facilities  for  liquefaction  and  buffer  storage  of  carbon  dioxide  in  view  of  its 
further transportation. This does not include infrastructure within a geological 
formation  used  for  the  permanent  geological  storage  of  carbon  dioxide 
pursuant  to  Directive  2009/31/EC  and  associated  surface  and  injection 
facilities. 

(c) 

any  equipment  or  installation  essential  for  the  system  in  question  to  operate 
properly, securely and efficiently, including protection, monitoring and control 
systems 

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REGIONAL IDENTIFICATION OF PROJECTS OF COMMON INTEREST 

ANNEX III 

1. 

(1) 

(2) 

(3) 

(4) 

RULES FOR REGIONAL GROUPS 

For  electricity  projects  falling  under  the  categories  set  out  in  point  1  of  Annex  II, 
each  Group  shall  be  composed  of  representatives  of  the  Member  States,  national 
regulatory  authorities,  transmission  system  operators  following  their  obligation  to 
cooperate on a regional level in accordance with Article 6 of Directive 2009/72/EC 
and Article 12 of Regulation (EC) No 714/2009 and project promoters concerned by 
each of the relevant priorities designated in Annex I, as well as the Commission, the 
Agency and the ENTSO for Electricity. 

For  gas  projects  falling  under  the  categories  set  out  in  point  2  of  Annex  II,  each 
Group  shall  be  composed  of  representatives  of  the  Member  States,  national 
regulatory  authorities,  transmission  system  operators  following  their  obligation  to 
cooperate on a regional level in accordance with Article 7 of Directive 2009/73/EC 
and Article 12 of Regulation (EC) No 715/2009 and project promoters concerned by 
each of the relevant priorities designated in Annex 1, as well as the Commission, the 
Agency and the ENTSO for Gas. 

For oil and carbon dioxide transport projects falling under the categories referred to 
in Annex II(3) and (4), each Group shall be composed of the representatives of the 
Member  States,  project  promoters  concerned  by  each  of  the  relevant  priorities 
designated in Annex 1 and the Commission. 

Each  Group  shall  organise  its  workload  in  line  with  regional  cooperation  efforts 
pursuant  Article  6  of  Directive  2009/72/EC,  Article  7  of  Directive  2009/73/EC, 
Article 12 of Regulation (EC) No 714/2009, and Article 12 of Regulation (EC) No 
715/2009 and other existing regional cooperation structures. 

Each Group shall invite, as appropriate in view of implementing the relevant priority 
designated  in  Annex  I,  representatives  of  national  administrations,  of  regulatory 
authorities, project promoters, and transmission system operators from EU candidate 
countries and potential candidates, the member countries of the European Economic 
Area  and  the  European  Free  Trade  Association,  representatives  from  the  Energy 
Community 
the  European 
Neighbourhood policy and countries, with which the Union has established specific 
energy cooperation. 

institutions  and  bodies,  countries  covered  by 

Each  Group  shall  consult  the  organisations  representing  relevant  stakeholders, 
including producers, distribution system operators, suppliers, consumers, and, for the 
tasks set out in paragraph 2 of Article 5, organisations for environmental protection. 
The  Group  may  organise  hearings  or  consultations,  where  relevant  for  the 
accomplishments of it tasks. 

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2. 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

PROCESS FOR REGIONAL IDENTIFICATION 

Each project promoter shall submit an application for selection as project of common 
interest  to  the  members  of  the  respective  Group,  including  an  assessment  of  its 
project(s)  with  regard  to  the  contribution  to  implementing  the  priorities  set  out  in 
Annex  I,  the  fulfilment  of  the  relevant  criteria  defined  in  Article  6,  and  any  other 
relevant information for the evaluation of the project. 

All  recipients  shall  preserve 
information. 

the  confidentiality  of  commercially  sensitive 

Proposed electricity transmission and storage projects falling under the categories set 
out  in  point  1(a)  to  (d)  of  Annex  II  shall  be  part  of  the  latest  available  ten-year 
network  development  plan  for  electricity,  developed  by  the  ENTSO  for  Electricity 
pursuant Article 8 of Regulation (EC) 714/2009. 

For all Union-wide lists of projects of common interest adopted after 1 August 2013, 
proposed gas transmission and storage projects falling under the categories set out in 
point 2 of Annex II shall be part of the latest available ten-year network development 
plan for gas, developed by the ENTSO for Gas pursuant Article 8 of Regulation (EC) 
715/2009. 

Proposed carbon dioxide transport projects falling under the category set out in point 
4  of  Annex  II  shall  be  presented  as  part  of  a  plan,  developed  by  more  than  two 
Member  States,  for  the  development  of  cross-border  carbon  dioxide  transport  and 
storage  infrastructure,  to  be  presented  by  the  Member  States  concerned  or  entities 
designated by those Member States to the Commission. 

When evaluating proposed electricity and gas projects falling under the categories set 
out in points 1(a) to (d) and 2 of Annex II, each Group shall, without prejudice to the 
provisions  of  point  4,  take  account  of  the  analysis  made,  in  accordance  with  the 
provisions  in  paragraph  7  of  Article  12,  for  proposed  electricity  and  gas  projects 
falling under the categories set out in points 1(a) to (d) and 2 of Annex II in the latest 
available  ten-year  network  development  plan  for  gas  and  electricity,  developed  by 
the ENTSOs for Electricity and Gas pursuant Article 8 of Regulations (EC) 714/2009 
and (EC) 715/2009. 

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ANNEX IV 

RULES AND INDICATORS CONCERNING CRITERIA FOR PROJECTS OF 

COMMON INTEREST 

(1) 

A  project  with  significant  cross-border  impact  is  a  project  on  the  territory  of  a 
Member State, which fulfils the following conditions: 

(a) 

(b) 

(c) 

(d) 

(e) 

for electricity transmission, the project changes the grid transfer capacity 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  by  at  least  500 
Megawatt compared to the situation without commissioning of the project; 

for  electricity  storage,  the  project  provides  storage  capacity  allowing  a  net 
annual electricity generation of at least 500 Gigawatt-hours; 

for gas transmission, the project concerns investment in reverse flow capacities 
or changes the capability to transmit gas across the border(s) of the concerned 
Member  State  by  at  least  10%  compared  to  the  situation  prior  to  the 
commissioning of the project; 

for  gas  storage  or  liquefied/compressed  natural  gas,  the  project  aims  at 
supplying directly or indirectly at least two Member States or at fulfilling the 
infrastructure  standard  (N-1  rule)  at  regional  level  in  accordance  with  Article 
6(3) of Regulation (EU) No 994/2010; 

for smart grids, the project is designed for equipments and installations at high-
voltage and medium-voltage level designed for a voltage of 10kV or more. It 
involves  transmission  and  distribution  system  operators  from  at  least  two 
Member  States,  which  cover  at  least  100,000  users  that  generate  or  consume 
electricity or do both in a consumption area of at least 300 Gigawatthours/year, 
of which at least 20% originate from non dispatchable resources. 

(2) 

Concerning projects falling under the categories set out in points 1(a) to (d) of Annex 
II, the criteria listed in Article 4 shall be measured as follows: 

(a)  Market integration, competition and system flexibility shall be measured in line 
with  the  analysis  made  in  the  latest  available  ten-year  network  development 
plan in electricity, notably by: 

– 

calculating,  for  cross-border  projects,  the  impact  on  the  grid  transfer 
capability in both power flow directions, measured in terms of amount of 
power  (in  megawatt),  or,  for  projects  with  significant  cross-border 
impact, the impact on grid transfer capability at borders between relevant 
Member  States,  between  relevant  Member  States  and  third  countries  or 
within  relevant  Member  States  and  on  demand-supply  balancing  and 
network operations in relevant Member States; 

– 

assessing  the  impact,  for  the  area  of  analysis  as  defined  in  point  10  of 
Annex  V,  in  terms  of  energy  system-wide  generation  and  transmission 

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costs and evolution of market prices provided by a project under different 
planning scenarios, notably taking into account the variations induced on 
the merit order. 

(b)  Transmission  of  renewable  energy  generation  to  major  consumption  centres 
and storage sites shall be measured in line with the analysis made in the latest 
available ten-year network development plan in electricity, notably by: 

– 

– 

for  electricity  transmission,  by  estimating  the  amount  of  generation 
capacity from renewable energy sources (by technology, in megawatts), 
which  is  connected  and  transmitted  due  to  the  project,  compared  to  the 
amount  of  planned  total  generation  capacity  from  these  types  of 
renewable  energy  sources  in  the  concerned  Member  State  in  2020 
according  to  the  national  renewable  energy  action  plans  as  defined  in 
Article 4 of Directive 2009/28/EC. 

for  electricity  storage,  by  comparing  new  capacity  provided  by  the 
project with total existing capacity for the same storage technology in the 
area of analysis as defined in point 10 of Annex V. 

(c) 

Interoperability and secure system operation shall be measured in line with the 
analysis  made  in  the  latest  available  ten-year  network  development  plan  in 
electricity,  notably  by  assessing  the  impact  of  the  project  on  the  loss  of  load 
expectation for the area of analysis as defined in point 10 of Annex V in terms 
of generation and transmission adequacy for a set of characteristic load periods, 
taking  into  account  expected  changes  in  climate-related  extreme  weather 
events and their impact on infrastructure resilience. 

The  total  expenditure  for  the  project  over  its  technical  lifecycle  shall  be  taken  into 
account when calculating these indicators. 

(3) 

Concerning projects falling under the categories set out in point 2 of Annex II, the 
criteria listed in Article 4 shall be measured as follows: 

(a)  Market  integration  and  interoperability  shall  be  measured  by  calculating  the 
additional  value  of  the  project  to  the  integration  of  market  areas  and  price 
convergence,  to  the  overall  flexibility  of  the  system,  including  the  capacity 
level offered for reverse flows under various scenarios. 

(b)  Competition  shall  be  measured  on  the  basis  of  diversification,  including  the 
facilitation of access to indigenous sources of supply, taking successively into 
account  diversification  of  sources,  counterparts  and  routes  and  the  impact  of 
new  capacity  on  the  HHI  index  calculated  at  capacity  level  for  the  area  of 
analysis as defined in point 10 of Annex V. 

(c)  Security of gas supply shall be measured by calculating the additional value of 
the project to the short and long-term resilience of the system and to enhancing 
the  remaining  flexibility  of  the  system  to  cope  with  supply  disruptions  under 
various  scenarios,  as  well  as  the  additional  capacity  provided  by  the  project 
measured in relation to the infrastructure standard (N-1 rule) at regional level 
in accordance with Article 6(3) of Regulation (EU) No 994/2010. 

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(d)  Sustainability  shall  be  measured  as  the  contribution  of  a  project  to  reduce 
emissions, to support the back-up of renewable electricity generation or power-
to-gas  and  biogas  transportation,  taking  into  account  expected  changes  in 
climatic conditions. 

(4) 

Concerning projects falling under the category set out in point 1(e) of Annex II, each 
function listed in Article 4 shall be evaluated against the following criteria: 

(a)  Level  of  sustainability:  This  criterion  shall  be  measured  by  assessing  the 
reduction  of  greenhouse  gas  emissions,  and  the  environmental  impact  of 
electricity grid infrastructure; 

(b)  Capacity of transmission and distribution grids to connect and bring electricity 
from and to users: This criterion shall be measured by estimating the installed 
capacity of distributed energy resources in distribution networks, the allowable 
maximum  injection  of  electricity  without  congestion  risks  in  transmission 
networks,  and  the  energy  not  withdrawn  from  renewable  sources  due  to 
congestion or security risks; 

(c)  Network  connectivity  and  access  to  all  categories  of  network  users:  This 
criterion  shall  be  evaluated  by  assessing  the  methods  adopted  to  calculate 
charges  and  tariffs,  as  well  as  their  structure,  for  generators,  consumers  and 
those  that  do  both,  and  the  operational  flexibility  provided  for  dynamic 
balancing of electricity in the network; 

(d)  Security  and  quality  of  supply:  This  criterion  shall  be  evaluated  by  assessing 
the ratio of reliably available generation capacity and peak demand, the share 
of electricity generated from renewable sources, the stability of the electricity 
system,  the  duration  and  frequency  of  interruptions  per  customer,  including 
climate related disruptions, and the voltage quality performance; 

(e)  Efficiency  and  service  quality  in  electricity  supply  and  grid  operation:  This 
criterion shall be estimated by assessing the level of losses in transmission and 
in distribution networks, the ratio between minimum and maximum electricity 
demand  within  a  defined  time  period,  the  demand  side  participation  in 
electricity markets and in energy efficiency measures, the percentage utilisation 
(i.e.  average  loading)  of  electricity  network  components,  the  availability  of 
network  components  (related  to  planned  and  unplanned  maintenance)  and  its 
impact  on  network  performances,  and  the  actual  availability  of  network 
capacity with respect to its standard value; 

(f)  Contribution  to  cross-border  electricity  markets  by  load-flow  control  to 
alleviate  loop-flows  and  increase  interconnection  capacities:  This  criterion 
shall be estimated by assessing the ratio between interconnection capacity of a 
Member  State  and  its  electricity  demand,  the  exploitation  of  interconnection 
capacities, and the congestion rents across interconnections. 

(5) 

Concerning  oil  transport  projects  falling  under  the  categories  set  out  in  point  3  of 
Annex II, the criteria listed in Article 4 shall be measured as follows: 

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(a)  Security  of  oil  supply  shall  be  measured  by  assessing  the  additional  value  of 
the new capacity offered by a project for the short and long-term resilience of 
the  system  and  the  remaining  flexibility  of  the  system  to  cope  with  supply 
disruptions under various scenarios. 

(b) 

Interoperability  shall  be  measured  by  assessing  to  what  extent  the  project 
improves  the  operation  of  the  oil  network,  in  particular  by  providing  the 
possibility of reverse flows. 

(c)  Efficient  and  sustainable  use  of  resources  shall  be  evaluated  by  assessing  the 
extent  to  which  the  project  makes  use  of  already  existing  infrastructure  and 
contributes to minimising environmental and climate change burden and risks. 

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ANNEX V 

ENERGY SYSTEM-WIDE COST-BENEFIT ANALYSIS 

The methodology for a harmonised energy system-wide cost-benefit analysis for projects of 
common interest shall satisfy the following principles laid down in this Annex. 

(1) 

The methodology shall be based on a common input data set representing the Union's 
electricity and gas systems in the years n+5, n+10, n+15, and n+20, where n is the 
year in which the analysis is performed. This data set shall comprise at least: 

(a) 

In  electricity:  scenarios  for  demand,  generation  capacities  by  fuel  type 
(biomass,  geothermal,  hydro,  gas,  nuclear,  oil,  solid  fuels,  wind,  solar 
photovoltaic,  concentrated  solar,  other  renewable  technologies)and  their 
geographical location, fuel prices (including biomass, coal, gas and oil), carbon 
dioxide  prices,  the  composition  of  the  transmission  and,  if  relevant,  the 
distribution network, and its evolution, taking into account all new significant 
generation (including capacity equipped for capturing carbon dioxide), storage 
and transmission projects for which a final investment decision has been taken 
and that are due to be commissioned by the end of year n+5; 

(b) 

In gas: scenarios for demand, imports, fuel prices (including coal, gas and oil), 
carbon  dioxide  prices,  the  composition  of  the  transmission  network  and  its 
evolution,  taking  into  account  all  new  projects  for  which  a  final  investment 
decision has been taken and that are due to be commissioned by the end of year 
n+5; 

The  data  set  shall  reflect  Union  and  national  legislations  in  force  at  the  date  of 
analysis. The data sets used for electricity and gas respectively shall be compatible, 
notably with regard to assumptions on prices and volumes in each market. The data 
set shall be elaborated after formally consulting Member States and the organisations 
representing all relevant stakeholders. The Commission and the Agency shall ensure 
access to the required commercial data from third parties when applicable. 

The  methodology  shall  give  guidance  for  the  development  and  use  of  network  and 
market modelling necessary for the cost- benefit analysis. 

The  cost-benefit  analysis  shall  be  based  on  a  harmonised  evaluation  of  costs  and 
benefits for the different categories of projects analysed and cover at least the period 
of time referred to in point 1. 

The cost-benefit analysis shall at least take into account the following costs: capital 
expenditure, operational and maintenance expenditure over the technical lifecycle of 
the project and decommissioning and waste management costs, where relevant. The 
methodology shall give guidance on discount rates to be used for the calculations. 

For  electricity  transmission  and  storage,  the  cost-benefit  analysis  shall  at  least  take 
into  account  the  impacts  on  the  indicators  defined  in  Annex  III.  In  line  with  the 
methods  applied  for  the  elaboration  of  the  latest  available  ten-year  network 
development  plan  in  electricity,  it  shall  in  addition  notably  take  into  account  the 
impacts of the project on the following: 

(2) 

(3) 

(4) 

(5) 

(6) 

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(a)  Competition  in  terms  of  market  power  of  different  operators  and  the 

convergence of prices between different Member States; 

(b)  Costs  of  electricity  generation,  transmission  and  distribution,  including  the 
costs  for  power  plant  self  consumption  and  those  related  to  greenhouse  gas 
emissions and transmission losses over the technical lifecycle of the project; 

(c)  Future costs for new generation and transmission investment over the technical 

lifecycle of the project; 

(d)  Operational  flexibility,  including  optimisation  of  regulating  power  and 

ancillary services; 

(e)  System  resilience,  including  disaster  and  climate  resilience,  and  system 
security,  notably  for  European  critical  infrastructures  as  defined  in  Directive 
2008/114/EC. 

(7) 

For gas, the cost-benefit analysis shall at least take into account the results of market 
testing, such as open seasons, the impacts on the indicators defined in Annex III and 
the following impacts: 

(a)  Competition  in  terms  of  market  power  of  different  operators  and  the 

convergence of prices between different Member States; 

(b)  System  resilience,  including  disaster  and  climate  resilience,  and  system 
security,  notably  for  European  critical  infrastructures  as  defined  in  Directive 
2008/114/EC; 

(c)  Probability and quantity of energy not being supplied and increase in security 

and quality of supply; 

(d)  Contribution to the integration of different gas market areas, 

(a)  Flexibility of and congestion in the gas network. 

(8) 

(9) 

(10) 

(11) 

For smart grids, the cost-benefit analysis shall take into account the impacts on the 
indicators defined in Annex III. 

The detailed method used to take into account the indicators referred to in points 6 to 
8  shall  be  elaborated  after  formally  consulting  the  organisations  representing  all 
relevant stakeholders. 

The methodology shall define an area of analysis for the cost-benefit analysis of each 
individual project and for the analysis at regional or Union-wide level. The area for 
the  analysis  of  an  individual  project  shall  cover  all  Member  States  and  third 
countries,  on  whose  territory  the  project  shall  be  built,  all  directly  neighbouring 
Member States and all other Member States significantly impacted by the project. 

The  methodology  shall  define  the  analysis  to  be  carried  out,  based  on  the  relevant 
input  data  set,  by  calculating  the  results  of  the  objective  function  with  and  without 
each project. The analysis shall identify the Member States on which the project has 
net  positive  impacts  (beneficiaries)  and  those  Member  States  on  which  the  project 

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(12) 

has  a  net  negative  impact  (cost  bearers).  Each  cost-benefit  analysis  shall  include 
sensitivity  analyses  concerning  the  input  data  set,  the  commissioning  date  of 
different projects in the same area of analysis and other relevant parameters. 

Transmission  and  distribution  system  operators  shall  exchange  the  information 
necessary for the elaboration of the methodology, including the relevant network and 
market  modelling.  Any  transmission  or  distribution  system  operator  collecting 
information  on  behalf  of  other  transmission  or  distribution  system  operators  shall 
give  back  to  the  participating  transmission  and  distribution  system  operators  the 
results  of  the  collection  of  data.  For  the  common  electricity  and  gas  market  and 
network model set out in paragraph 8 of Article 12, the input data set referred to in 
point 1 shall cover the years n+10, n+20 and n+30 and the model shall allow for a 
full  assessment  of  economic,  social  and  environmental  impacts,  notably  including 
external costs such as those related to greenhouse gas and conventional air pollutant 
emissions or security of supply. 

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GUIDELINES FOR TRANSPARENCY AND PUBLIC PARTICIPATION 

ANNEX VI 

(1) 

The manual of procedures shall at least specify: 

(a) 

the  relevant  legislation  upon  which  decisions  and  opinions  are  based  for  the 
including 
relevant  projects  of  common 
different 
environmental legislation; 

types  of 

interest, 

(b) 

the relevant decisions and opinions to be obtained; 

(c) 

(d) 

(e) 

the names and contact details of the Competent Authority, other authorities and 
major stakeholders concerned; 

the work flow, outlining each stage in the process, including an indicative time 
frame; 

information  about  the  scope,  structure  and  level  of  detail  of  documents  to  be 
submitted with the application for decisions, including a checklist; 

(f) 

the stages and means for the general public to participate in the process. 

(2) 

To  increase  public  participation  in  the  permit  granting  process,  the  following 
principles shall be applied: 

(a)  The stakeholders affected by a project of common interest, including relevant 
authorities,  landowners  and  citizens  living  in  the  vicinity  of  the  project,  the 
general  public  and  their  associations,  organisations  or  groups,  shall  be 
extensively  informed  and  consulted  at  an  early  stage  and  in  an  open  and 
transparent  manner.  Where  relevant,  the  competent  authority  shall  actively 
support the activities undertaken by the project promoter. 

(b)  Competent  authorities  shall  ensure  that  public  consultation  procedures  for 
projects  of  common  interest  are  concentrated  where  possible.  Each  public 
consultation  shall  cover  all  subject  matters  relevant  to  the  particular  stage  of 
the  procedure,  and  one  subject  matter  relevant  to  the  particular  stage  of  the 
procedure  shall  not  be  addressed  in  more  than  one  public  consultation.  The 
subject matters addressed by a public consultation shall be clearly indicated in 
the notification of the public consultation. 

(c)  Comments and objections shall be admissible from the beginning of the public 

consultation until the expiry of the deadline only. 

(3) 

The concept for public participation shall at least include information about: 

(a) 

the stakeholders concerned and addressed; 

(b) 

the measures envisaged; 

(c) 

the timeline; 

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(d) 

the human resources allocated to the respective tasks. 

(4) 

In  the  context  of  the  public  consultation  to  be  carried  out  before  submission  of  the 
application file, the relevant parties shall at least: 

(a)  publish an information leaflet of no more than 15 pages, giving, in a clear and 
concise  manner,  an  overview  of  the  purpose  and  preliminary  timetable  of  the 
project, at least three alternative routes considered, expected impacts, including 
of cross-border nature, and possible mitigation measures; 

(b) 

(c) 

inform all stakeholders affected about the project through the website referred 
to in Article 10(7) and other appropriate information means; 

invite  in  written  form  relevant  affected  stakeholders  to  dedicated  meetings, 
during which concerns shall be discussed. 

(5) 

The project website shall make available as a minimum the following: 

(a) 

a  non-technical  and  regularly  updated  summary  of  no  more  than  50  pages 
reflecting  the  current  status  of  the  project  and  clearly  indicating,  in  case  of 
updates, changes to previous versions; 

(b) 

the  project  and  public  consultation  planning,  clearly  indicating  dates  and 
locations for public consultations and hearings; 

(c) 

contact details in view of obtaining the full set of application documents; 

(d) 

contact  details  in  view  of  conveying  comments  and  objections  during  public 
consultations; 

(e) 

the manual of procedures pursuant Article 10(1). 

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