Aziz Ameyoud (OS – Algeria), Chairman of the Technical Committee “International Electricity Exchanges”
Developed starting from the results of the Cost-Benefit Analysis within the Mediterranean Project 1, the general criteria and main guidelines for a Cross Border Cost Allocation (CBCA) process have been defined by Med-TSO with Deliverable 4.2 in the framework of the ongoing Mediterranean Project 2. This deliverable has been finalized by the Technical Committee “International Electricity Exchanges”, chaired by Mr. Aziz Ameyoud (OS -Algeria), in cooperation with the Technical Committee “Regulation and Institutions”, chaired by Mr. Juan Manuel Rodriguez (REE – Spain), and has been shared with MedReg, the association of Mediterranean Energy Regulators, for achieving a common position for future applications in the Mediterranean context.The procedure outlined in this report represents a significant step towards completing the entire Cost-Benefit Analysis (CBA) process, aiming at evaluating benefits and costs of the projects studied by Med-TSO, defining also for each of them the relevant potential risks. The proposed CBCA criteria will be applied for completing the Cost-Benefit Analysis carried out in the “Master Plan of Mediterranean Interconnections 2020” that will be delivered in the third quarter of 2020. Through the outlined CBCA process, it will be possible to tackle some of the main issues and challenges that may occur while developing new interconnection projects related to:
- different regulatory frameworks existing in the host countries;
- need to identify all of the participating countries, i.e. other possible beneficiaries that could join alongside the host countries;
- level of participation and associated regulations for sharing costs, benefits and risks;
- uncertainties on the perimeter of interconnection project costs to be shared;
- criteria for allocating the interconnection capacity and whether or not it has to be based on market rules;
- finally, additional transmissions costs, including transmission losses and hosting flows.