Report on Funding Investments of the Energy Community Gas Ring now available
The Energy Community Secretariat, upon request of the ECRB, commissioned a study on “Recommendations for Funding Investments in the Energy Community Gas Ring” in 2011. The final report of the study is now available on-line. The study examines the optimal framework which would attract investments needed to complete two sections of the Gas Ring. It sketches an overall approach for developing an investment framework appropriate to the conditions existing in both of these routes.
As regards the breakdown of the two sections, the ‘Northern Route’ involves Croatia, Serbia and Bosnia and Herzegovina. The ‘Southern Route’ involves Albania, Former Yugoslav Republic of Macedonia and UNMIK. In addition, feed-in lines to the Northern and Southern Route include Bulgaria, Hungary, Italy, Greece and Romania.
According to the findings of the study, the “volume and price, and payment risks pose major obstacles to new investments. Regulatory risk poses a medium risk obstacle. In countries where there are few or no gas consumers there will be no private investment in new gas infrastructure unless there are government guarantees in place.“ As a result, the study recommends government guarantees or public private partnership arrangement. Furthermore, “a full risk assessment of the whole value chain of each anchor load project should be undertaken and potential risk management measure identified.“