In 2006, the European Union estimated that Contracting Parties necessitate investments at USD 30 billion over the coming decade to bring the electricity infrastructure up to EU standards. The region is moreover marked by relatively underdeveloped gas networks, in comparison with the EU, and so major investment is also needed here. Situated on the route from the Caspian, North Africa and Middle East gas reserves to the EU, the Contracting Parties are, however, well placed to benefit from the development of new transit pipelines on this corridor.
LIST OF PRIORITY INFRASTRUCTURE PROJECTS
NEW APPROACH
CRITERIA
First list of priority infrastructure projects
In Jun 2007, the Ministerial Council requested the PHLG to draw up a list of priority infrastructure projects for the Contracting Parties using the criteria established in the European Union's Trans-European Networks – Energy Programme (TEN-E).
The first indicative list included 154 project from the seven Contracting Parties and one Observer (Moldova). It was circulated for information to investors and International Financial Institutions, as well as to the participants of the Energy Community Investment Conference in Sep 2007. As a result, a shorter list of priority projects (app. 40) was prepared for the endorsement of the Ministerial Council in Dec 2007. The Ministers updated the list in Dec 2009.
New approach
Given the slow process with many of the investments, it appeared that further facilitation is needed for the selected projects. Upon proposal of the European Commission, a Donors’ Community meeting was organized to draw attention to three gas infrastructure projects of regional value on 17 Dec 2009.
The aim of the exercise was to identify existing obstacles from the stakeholders’ perspective and find solutions to these. Building on the selection mode applied for the gas projects, the Secretariat was invited to, in close consultation with the Donors’ coordinator, identify and propose a similar short list of electricity infrastructure projects. In Mar 2010 the PHLG welcomed the Secretariat's proposal on short list of electicity infrastructure projects.
A more concrete implementation approach, with the following steps, was agreed upon:
• Identification of maximum 10 projects from both gas and electricity sectors, as well the interest of the projects’ sponsors to pursue with the investment;
• Identification of the state of play with each project;
• Organization of joint meetings between the project sponsors (companies), the Donors’ Community (chaired by the European Commission) and the Energy Community Secretariat;
• Identification of possible obstacles in the projects’ way to financing and implementation;
• Looking for solutions to remove these obstacles, and work with the actors involved to implement the solutions;
• Follow up the progress with the relevant parties in the projects and report to the Donors’ Community and the PHLG.
The Criteria
The criteria for identifying the short listed projects’ is based on the following:
• Increase security of energy supply to customers as well as the safety / reliability of the energy networks;
• Contribution to the development of the regional, competitive electricity and gas market;
• Importance for electricity interconnection and trade;
• Importance for the gasification of the region (pipelines);
• Merits as new gas anchor loads needed for the further gasification of the Energy Community ;
• Listed as priority in the SECI project: Transmission planning taken into account new generation, or the UCTE/ENTSO reports, the GIS study, etc.;
• Link with other regional interconnections (gas and electricity) that are already being built;
• Maturity status;
• Contribution to reduce congestions in electricity;
• Contribution to improving the environmental conditions in the energy sector.
CONTENT
The following pages display the key data on each short listed project. Firstly the Electricity projects will be introduced, followed by the selection of Gas projects. The last page of the section provides details on Infrastructure Projects Facility – Technical assistance.
