On 26 March 2024 the European Commission approved the ENTSO-E Guideline for Cost Benefit Analysis of Grid Development Projects. This comes as recognition from the European Commission of the continuous effort to improve the quality of the methodologies used in the context of Ten-Year Network Development Plan (TYNDP). The TYNDP is the pan-European electricity infrastructure development plan, that provides a European-wide vision of the future power system and investigates how power links can be used to make the energy transition happen in a cost-effective and secure way.

The ENTSO-E Guideline for Cost Benefit Analysis of Grid Development Projects describes the methodologies used to appraise the benefits and costs of the infrastructure projects included in the TYNDP. The indicators proposed in the Guideline measure the impact from infrastructure projects for sustainability, market integration and security of supply, in line with the requirements and criteria set by Regulation (EU) 2022/869.

Approval by the European Commission is a recognition to the quality and the fairness of the assessment performed by ENTSO-E for infrastructure projects that will enable a more sustainable, affordable, secure and integrated energy system for the future

said Gerald Kaendler, Chair of ENTSO-E System Development Committee.

The ENTSO-E Guideline was submitted to a public consultation from December 2022 to February 2023 in which many stakeholders provided feedback. Following the consultation, the Guideline was amended and submitted for Opinion to ACER, the European Commission and Member States by the legal deadline of 24 April 2023.

ENTSO-E will continue improving its methodology for future TYNDP cycles, including considering the comments provided by the European Commission in its decision. The Guideline will be implemented for the first time in TYNDP 2024, which will assess how 176 transmission and 33 storage projects would impact the pan-European power system. The results of the cost-benefit analysis are expected in the 4th quarter of 2024.