“Cross-border Cost Allocation: How to assign costs and risks of interconnection projects?” MEDREG & Med-TSO held the Webinar “Cross-Border Cost Allocation for Electricity Projects in the Mediterranean: the view of Regulators and Operators”

Wednesday, 7 October, 2020 MEDREG, the Association of Mediterranean Energy Regulators, and Med-TSO, the Association of Mediterranean Transmission System Operators held the webinar “Cross-Border Cost Allocation for Electricity Projects in the Mediterranean: the View of Regulators and Operators”.

The objective of the webinar was to establish a set of criteria and propose the main guidelines for the application of a Cross-border Cost Allocation (CBCA) mechanism to certain interconnection projects assessed under the framework of Med-TSO’s activities.

CBCA is a financial tool used to facilitate the implementation of Projects of Common Interest. While the Cost Benefit Analysis (CBA) aims to assess, identify and quantify the positive trade-off of interconnection development for the involved systems, Cross-border Cost Allocation (CBCA) responds to the challenge on how to distribute and assign the costs –and risks of this development.

The event was opened by the Secretary General of Med-TSO, Mr. Angelo Ferrante (TERNA, Italy) and by the Deputy Secretary General of MEDREG, Mr. Hasan Ozkoc, and it saw the contributions of technical experts from both the operator and regulator side. After that, key experts from the European Union, Transmission System Operators and Energy Regulatory Authorities presented the application of the CBCA in some different case studies during a panel session moderated by Mr. Benoit Esnault (CRE, France – MEDREG). This was followed by a fruitful Q&A session.

The event was concluded with a final speech by Mr. Marco Berti Palazzi from Directorate-General for Energy of the European Commission who encouraged the two associations to pursue their successful collaboration towards a regional integrated electricity market.

MEDREG and Med-TSO joined forces in 2013, by signing a bilateral cooperation protocol and a further protocol including the European Commission in 2014. The aim of their cooperation is to reinforce Mediterranean electricity interconnections and to support a more efficient and balanced dialogue between TSOs and regulators at the national level. MEDREG and MED-TSO also closely cooperate on the implementation of the work programme for the Union for the Mediterranean (UfM) Regional Electricity Market Platform (UfM REM Platform).