Changes from report parliamentary committee draft to plenary report

Added(6) Concerning hydrogen falling under the energy infrastructure category set out in point (2) of Annex II, the criteria listed in Article 4 shall be evaluated as follows:

Added(a) sustainability, measured as the contribution of a project to greenhouse gas emission reductions in various end-use applications in hard-to-abate sectors, such as industry or transport; flexibility and seasonal storage options for renewable electricity generation; or the integration of renewable and low-carbon hydrogen with a view to consider market needs and promote renewable hydrogen;

Added(b) market integration and interoperability, 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;

Added(c) security of supply and flexibility, measured by calculating the additional value of the project to the resilience, diversity and flexibility of hydrogen supply;

Added(d) competition, measured by assessing the project’s contribution to supply diversification, including the facilitation of access to indigenous sources of hydrogen supply.

Added(7) Concerning electrolyser projects falling under the energy infrastructure category set out in point (3) of Annex II the criteria listed in Article 4 shall be evaluated as follows:

Added(a) sustainability, measured by assessing the share of renewable hydrogen or low-carbon hydrogen, in particular from renewable sources meeting the criteria defined in point (3)(a)(ii) of Annex II integrated into the network or estimating the amount of deployment of synthetic fuels of those origins and the related greenhouse gas emission savings;

Added(b) security of supply, measured by assessing its contribution to the safety, stability and efficiency of network operation, including through the assessment of avoided curtailment of renewable electricity generation;

Added(c) enabling flexibility services such as demand response and storage by the facilitation of smart energy sector integration through the creation of links to other energy carriers and sectors, measured by assessing the cost savings enabled in connected energy sectors and systems, such as the gas, hydrogen, power and heat networks, the transport and industry sectors.

Added(8) Concerning carbon dioxide infrastructure falling under the energy infrastructure categories set out in point (4) of Annex II the criteria listed in Article 4 shall be evaluated as follows:

Added(a) sustainability, measured by assessing the total expected project life-cycle greenhouse gas reductions and the absence of alternative technological solutions such as, but not limited to, energy efficiency, electrification integrating renewable sources, to achieve the same level of greenhouse gas reductions as the amount of carbon dioxide to be captured at connected industrial installations at a comparable cost within a comparable timeline taking into account the greenhouse gas emissions from the energy necessary to capture, transport and store the carbon dioxide, as applicable, considering the infrastructure including, where applicable, other potential future uses;

Added(b) resilience and security, measured by assessing the security of the infrastructure;

Added(c) the mitigation of environmental burden and risk via the permanent neutralisation of carbon dioxide.

AddedThe methodologies for cost-benefit analyses developed by the ENTSO for Electricity and the ENNOH shall be consistent with each other, taking into account sectorial specificities. The methodologies for a harmonised and transparent energy system-wide cost-benefit analysis for projects on the Union list shall be uniform for all infrastructure categories, unless specific divergences are justified. They shall address costs in the broader sense, including externalities, in view of the Union’s targets for energy and climate and its 2050 climate neutrality objective, they shall be designed to assess the extent to which projects or project bundles effectively address identified infrastructure needs and shall comply with the following principles:

Added(1) the area for the analysis of an individual project shall cover all Member States and third countries, on whose territory the project is located, all directly neighbouring Member States and all other Member States in which the project has a significant impact. For this purpose, ENTSO for Electricity and ENNOH shall cooperate with all the relevant system operators in the relevant third countries. In the case of projects falling under the energy infrastructure category set out at point (3) of Annex II, the ENTSO for Electricity and the ENNOH shall cooperate with the project promoter, including where it is not a system operator;

Added(2) each cost-benefit analysis shall include sensitivity analyses concerning the input data set, investment cost assumptions, where relevant, including the cost of generation and greenhouse gases as well as the expected development of demand and supply, including with regard to renewable energy sources, and including the flexibility of both, electrification rates and impacts on seasonal peak demand for electricity, and the availability of storage, the commissioning date of various projects in the same area of analysis, climate impacts and other relevant parameters; the modelling shall allow for scenario-based comparison of alternative solutions;

Added(2a) investment costs shall be presented using cost ranges reflecting the level of project maturity or by the single point estimates, and shall be accompanied by an explanation of the main sources of uncertainty;

Added(2b) the treatment of uncertainty and risk shall be applied symmetrically across all project types. Where conservative assumptions are applied to innovative infrastructure solutions, equivalent assessment shall also be applied to potential cost escalation, permitting risk and delivery risk associated with conventional infrastructure solutions;

Added(3) they shall establish the analysis to be carried out, based on the relevant multi-sectorial input data set by determining the impact with and without each project and shall include the relevant interdependencies with other projects and shall enable a systematic comparison between identified infrastructure needs and the contribution of each project or project bundle to addressing those needs, including the identification of residual unmet needs;

Added(4) they shall give guidance for the development and use of energy network and market modelling necessary for the cost-benefit analysis. The modelling shall allow for a full assessment of economic benefits, including market integration, security of supply and competition, as well as lifting energy isolation, social and environmental and climate impacts, including the cross-sectorial impacts. The methodology shall be fully transparent including details on why, what and how each of the benefits and costs are calculated;

Added(5) they shall include an explanation on how the energy efficiency first principle is implemented including the assessment of higher efficiency alternatives in energy supply, demand, transmission and distribution, at system level, across electricity, heat and gas systems, in all the steps of the Union-wide ten-year network development plans;

Added(6) they shall explain that the development and deployment of renewable energy will not be hampered by the project;

Added(7) they shall ensure that the Member States on which the project has a net positive impact, the beneficiaries, the Member States on which the project has a net negative impact, and the cost bearers, which may be Members States other than those on which territory the infrastructure is constructed, are identified;

Added(8) they shall take into account, at least, the capital expenditureoperational and maintenance expenditure costs as well as the costs induced for the related system over the technical lifecycle of the project as a whole, such as decommissioning and waste management costs, including external costs The methodologies shall give guidance on discount rates, technical lifetime and residual value to be used for the cost- benefit calculations. They shall furthermore include a mandatory methodology to calculate benefit-to-cost ratio and the net present value, as well as a differentiation of benefits in accordance with the level of reliability of their estimation methods, and shall include indicators reflecting improvements in system utilisation and capacity availability. Methods to calculate the climate and environmental impacts of the projects and the contribution to Union energy targets, such as renewable penetrations reduction in system losses, energy efficiency and interconnection targets shall also be taken into account. For projects awarded PCI/PMI status in previous assessments, where those project costs diverge materially from those assumed at the time of project selection, the updated cost assumptions and their impact on the benefit-to-cost ratio shall be transparently reported:

Added(9) they shall ensure that the climate adaptation measures taken for each project are assessed and reflect the cost of greenhouse gas emissions and that the assessment is robust and consistent with other Union policies in order to enable comparison with other solutions which do not require new infrastructures, and shall ensure that the methodologies capture long-term system risks, including the risk of underutilisation of assets, and support a phased and market-based development of infrastructure where relevant;

Added(9a) they may be consistent on the following elements: assessment period, residual value of projects, use of social discount rate; approach for building the electricity, gas and hydrogen reference networks; stages of project implementation status; definition of project capital and operational expenditures; calculation of the project Economic Performance Indicators, use of sensitivities; and modelling interlinkages across sectors;

Added(1) The manual of procedures referred to in Article 9(1) shall contain at least:

Added(a) specifications of the relevant pieces of legislation upon which decisions and opinions are based for the various types of relevant projects of common interest, including environmental law;

Added(b) the list of relevant decisions and opinions to be obtained;

Added(c) the names and contact details of the competent authority, other authorities concerned and major stakeholders concerned;

Added(d) the work flow, outlining each stage in the process, including an indicative timeline and a concise overview of the decision-making process for the various types of relevant projects of common interest;

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

Added(f) the stages and means for the general public to participate in the process;

Added(g) the manner in which the competent authority, other authorities concerned and the project promoter shall demonstrate that the opinions expressed in the public consultation were taken into account, for example by showing what amendments were done in the location and design of the project or by providing reasons why such opinions have not been taken into account;

Added(h) to the extent possible, translations of its content in English and all languages of the neighbouring Member States to be realised in coordination with the relevant neighbouring Member States.

Added(2) The detailed schedule referred to in Article 10(8), shall at least specify the following:

Added(a) the decisions and opinions to be obtained;

Added(b) the authorities, stakeholders, and the public likely to be concerned;

Added(c) the individual stages of the procedure and their duration;

Added(d) major milestones to be accomplished and their deadlines in view of the comprehensive decision to be taken;

Added(e) the resources planned by the authorities and possible additional resource needs.

Added(3) Without prejudice to the requirements for public consultations under environmental law, to increase public participation in the permit granting process and ensure in advance information and dialogue with the public, the following principles shall be applied:

Added(a) the stakeholders affected by a project of common interest, including relevant national, regional and local 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, in an inclusive manner, when potential concerns by the public can still be taken into account and in an open and transparent manner. Where relevant, the competent authority shall actively support the activities undertaken by the project promoter;

Added(b) competent authorities shall ensure that public consultation procedures for projects of common interest are grouped together where possible including public consultations already required under national law. 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; however, one public consultation may take place in more than one geographical location. The subject matters addressed by a public consultation shall be clearly indicated in the notification of the public consultation;

Added(c) comments and objections shall be admissible only from the beginning of the public consultation until the expiry of the deadline;

Added(d) the project promoters shall ensure that consultations take place during a period that allows for open and inclusive public participation.

Added(4) The concept for public participation shall at least include information about:

Added(a) the stakeholders concerned and addressed;

Added(b) the measures envisaged, including proposed general locations and dates of dedicated meetings;

Added(c) the timeline;

Added(d) the human resources allocated to various tasks.

Added(5) In the context of the public consultation to be carried out before submission of the application file, the relevant parties shall at least:

Added(a) publish in electronic and, where relevant, printed form, an information leaflet of no more than 15 pages, giving, in a clear and concise manner, an overview of the description, purpose and preliminary timetable of the development steps of the project, the national grid development plan, alternative routes considered, types and characteristics of the potential impact, including of cross-border or transboundary nature, and possible mitigation measures, such information leaflet is to be published prior to the start of the consultation and to list the web addresses of the website of the project of common interest referred to in Article 9(7), the transparency platform referred to in Article 23 and the manual of procedures referred to in point (1) of this Annex;

Added(b) publish the information on the consultation on the website of the project of common interest referred to in Article 9(7), on the bulletin boards of the offices of local administrations, and, at least, in one or, if applicable, two local media outlets;

Added(c) invite, in written or electronic form, the relevant affected stakeholders, associations, organisations and groups to dedicated meetings, during which concerns shall be discussed.

Added(6) The project website referred to in Article 9(7) shall at least publish the following information:

Added(a) the date when the project website was last updated;

Added(b) translations of its content in English and in all languages of the Member States concerned by the project or on which the project has a significant cross-border impact in accordance with point (1) of Annex IV;

Added(c) the information leaflet referred to in point (5) updated with the latest data on the project;

Added(d) a non-technical and regularly updated summary reflecting the current status of the project, including geographic information, and clearly indicating, in case of updates, changes to previous versions;