24.9.2010 EN Official Journal of the European Union L 250/5 COMMISSION REGULATION (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EC) No 714/2009 of the European Parliament and of the Council on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (1), and in particular the first sentence of Article 18 (5) thereof, Whereas: (1) Commission Regulation (EU) No 774/2010 of 2 September 2010 on laying down guidelines relating to inter-transmission system operator compensation and a common regulatory approach to transmission charging (2) establishes a mechanism for the compensation of transmission system operators for the costs of hosting cross-border flows of electricity and a common regulatory approach to transmission charging. However, that Regulation will expire on 2 March 2011. (2) In order to ensure the continuity of implementation the inter-transmission system operator compensation mechanism, new guidelines specified in Article 18(1) and (2) of Regulation (EC) No 714/2009 of 13 July 2009 should be adopted which reflect the institutional framework established by that Regulation. In particular, the Agency for the Co-operation of Energy Regulators (hereinafter ‘the Agency’), established by Regulation (EC) No 713/2009 of the European Parliament and of the Council (3) should be responsible for monitoring the implementation of the inter-transmission system operator compensation mechanism. (3) Binding guidelines establishing an inter-transmission system operator compensation mechanism should establish a stable basis for the operation of the inter-transmission system operator compensation mechanism and fair compensation to transmission system operators for the costs of hosting cross-border flows of electricity. (4) Transmission system operators from third countries or from territories which have concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity should be entitled to participate in the inter-transmission system compensation Mechanism on an equivalent basis to transmission system operators from Member States. (5) It is appropriate to allow transmission system operators in third countries which have not concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity to enter into multi-party agreements with the transmission system operators in the Member States which enable all parties to be compensated for the costs of hosting cross-border flows of electricity on a fair and equitable basis. (6) Transmission system operators should be compensated for energy losses resulting from hosting cross-border flows of electricity. Such compensation should be based on an estimate of what losses would have been incurred in the absence of transits of electricity. (7) A fund should be established to compensate transmission system operators for the costs of making infrastructure available to host cross-border flows of electricity. The value of this fund should be based on a Union-wide assessment of the long run average incremental costs of making infrastructure available to host cross-border flows of electricity. (8) The Union-wide assessment of electricity transmission infrastructure associated with facilitating cross-border flows of electricity should be carried out by the Agency as the body responsible for coordinating the activities of regulatory authorities who must carry out a similar function at a national level. (9) Transmission system operators in third countries should face the same costs for using the Union transmission system as transmission system operators in Member States. (10) Variations in charges faced by producers of electricity for access to the transmission system should not undermine the internal market. For this reason average charges for access to the network in Member States should be kept within a range which helps to ensure that the benefits of harmonisation are realised. (11) The measures provided for in this Regulation are in accordance with the opinion of the Committee set up by Article 46 of Directive 2009/72/EC of the European Parliament and of the Council (4), HAS ADOPTED THIS REGULATION: Article 1 Transmission system operators shall receive compensation for costs incurred as a result of hosting cross-border flows of electricity on their networks on the basis of the guidelines set out in Part A of the Annex. Article 2 Charges applied by network operators for access to the transmission system shall be in accordance with guidelines set out in Part B of the Annex. Article 3 This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union. It shall apply from 3 March 2011. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 23 September 2010. For the Commission The President José Manuel BARROSO (1) OJ L 176, 15.7.2003, p. 1. (2) OJ L 233, 3.9.2010, p. 1. (3) OJ L 211, 14.8.2009, p. 1. (4) OJ L 211, 14.8.2009, p. 55. ANNEX PART A Guidelines on the Inter-Transmission System Operator Compensation Mechanism 1. General Provisions 1.1. The Inter-Transmission System Operator Compensation (ITC) mechanism shall provide for compensation for the costs of hosting cross-border flows of electricity including providing cross-border access to the interconnected system. 1.2. The European Network of Transmission System Operators for Electricity (ENTSO for Electricity) set up in accordance with Article 5 of Regulation (EC) 714/2009 shall establish an ITC fund for the purpose of compensating transmission system operators for the costs of hosting cross-border flows of electricity. The ITC fund shall provide compensation for: (1) the costs of losses incurred national transmission systems as a result of hosting cross-border flows of electricity; and (2) the costs of making infrastructure available to host cross-border flows of electricity. 1.3. Contributions to the ITC Fund shall be calculated in accordance with points 6 and 7. Payments from the ITC Fund shall be calculated in accordance with points 4 and 5. ENTSO for Electricity shall be responsible for establishing arrangements for the collection and disbursement of all payments relating to the ITC Fund, and shall also be responsible for determining the timing of payments. All contributions and payments shall be made as soon as possible, and at the latest within six months of the end of the period to which they apply. 1.4. The Agency shall oversee the implementation of the ITC mechanism and report to the Commission each year on the implementation of the ITC mechanism and the management of the ITC fund. ENTSO for Electricity shall co-operate with the Commission and with the Agency in this task and shall provide the Agency with all information necessary for this purpose. Each transmission system operator shall provide ENTSO for Electricity and the Agency with all information necessary for the implementation of the ITC Mechanism. 1.5. Until such time as ENTSO for Electricity has been established, transmission system operators shall co-operate amongst themselves to carry out the tasks assigned to ENTSO for Electricity in relation to the ITC mechanism. 1.6. Transit of electricity shall be calculated, normally on an hourly basis, by taking the lower of the absolute amount of imports of electricity and the absolute amount of exports of electricity on interconnections between national transmission systems. For the purpose of calculating transits of electricity the amount of imports and the amount of exports at each interconnection between national transmission systems shall be reduced in proportion to the share of capacity allocated in a manner which is not compatible with Point 2 of the guidelines on congestion management set out in Annex I of Regulation (EC) No 714/2009. Notwithstanding the provisions of the second subparagraph of this point imports and exports of electricity on interconnections with third countries to which the provisions of point 7.1 apply shall be included in the calculation of transit of electricity. 1.7. For the purposes of this part of the Annex, the net flow of electricity shall mean the absolute value of the difference between total exports of electricity from a given national transmission system to countries where the TSOs participate in the ITC Mechanism and total imports of electricity from countries where the TSOs participate in the ITC Mechanism to the same transmission system. For ITC mechanism parties with a common border with at least one third country to which the provisions of Point 7.1 apply the following adjustments to the calculation of net flow shall be made: (1) if total exports of electricity to countries where the TSOs participate in the ITC Mechanism are greater than total imports of electricity from countries where the TSOs participate in the ITC Mechanism, net flows shall be reduced by the lower of: (a) net import flows from those third countries; or (b) net export flows to countries where the transmission system operator participates in the ITC Mechanism; (2) if total imports of electricity from countries where the TSOs participate in the ITC Mechanism are greater than total exports of electricity to countries where the TSOs participate in the ITC Mechanism then net flows shall be reduced by the lower of (a) net export flows to those third countries; or (b) net import flows from countries where the transmission system operator participates in the ITC mechanism. 1.8. For the purposes of this annex load shall mean the total amount of electricity which exits the national transmission system to connected distribution systems, end consumers connected to the transmission system and to electricity producers for consumption in the generation of electricity. 2. Participation in the ITC mechanism 2.1. Each regulatory authority shall ensure that transmission system operators in its area of competence participate in the ITC mechanism and that no additional charges for hosting cross-border flows of electricity are included in charges applied by transmission system operators for access to networks. 2.2. Transmission system operators from third countries which have concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity shall be entitled to participate in the ITC mechanism. In particular, the transmission system operators operating in the territories referred to in Article 9 of the Energy Community Treaty (1) shall be entitled to participate in the ITC mechanism. Each transmission system operator from a third country participating in the ITC mechanism shall be treated on an equivalent basis to a transmission system operator of a Member State. 3. Multi-Party Agreements 3.1. ENTSO for Electricity shall facilitate the conclusion of multi-party agreements relating to the compensation for the costs of hosting cross-border flows of electricity between transmission system operators participating in the ITC mechanism and those transmission system operators from third countries which have not concluded agreements with the Union whereby they have adopted and are applying Union law in the field of electricity, and which, on 16 December 2009, signed the voluntary agreement between transmission system operators on inter-transmission system operator compensation. 3.2. Such multi-party agreements shall aim at ensuring that the transmission system operator from the third country be treated on an equivalent basis to a transmission system operator in a country participating in the ITC Mechanism. 3.3. Where necessary such multi-party agreements may recommend appropriate adjustment to total compensation for the compensation for making infrastructure available to host cross-border flows of electricity determined in accordance with point 5. Any such adjustment shall be subject to approval by the Commission, taking account of the opinion of the Agency. 3.4. The treatment of the transmission system operator from the third country shall not be more favourable in comparison to that which would apply to a transmission system operator participating in the ITC Mechanism. 3.5. ENTSO for Electricity shall submit all such multi-party agreements to the Commission for its opinion as to whether continuation of the multi-party agreement promotes the completion and functioning of the internal market in electricity and cross-border trade. The opinion of the Commission shall address in particular: (1) whether the agreement relates only to compensation between transmission system operators (TSOs) for the costs of hosting cross-border flows of electricity; (2) whether the requirements of points 3.2 and 3.4 are respected. 3.6. In preparing the opinion referred to in point 3.5 the Commission shall consult all the Member States, taking particular account of the views of those Member States sharing a border with the relevant third country. In preparing its opinion the Commission may consult the Agency. 4. Compensation for Losses 4.1. Compensation for losses incurred on national transmission systems as a result of hosting cross-border flows of electricity shall be calculated separately from compensation for costs incurred associated with making infrastructure available to host cross-border flows of electricity. 4.2. The amount of losses incurred on a national transmission system shall be established by calculating the difference between: (1) the amount of losses actually incurred on the transmission system during the relevant period; and (2) the estimated amount of losses on the transmission system which would have been incurred on the system during the relevant period if no transits of electricity had occurred. 4.3. ENTSO for Electricity shall be responsible for carrying out the calculation referred to in point 4.2 and shall publish this calculation and its method in an appropriate format. This calculation may be derived from estimates for a number of points of time during the relevant period. 4.4. The value of losses incurred by a national transmission system as a result of the cross-border flow of electricity shall be calculated on the same basis as that approved by the regulatory authority in respect of all losses on the national transmission systems. The Agency shall verify the criteria for the valuation of losses at national level taking particular account that losses are valued in a fair and non-discriminatory way. Where the relevant regulatory authority has not approved a basis for the calculation of losses for a period of time for which the ITC mechanism applies, the value of losses for the purposes of the ITC mechanism shall be estimated by ENTSO for Electricity. 5. Compensation for provision of infrastructure for cross-border flows of electricity 5.1. Following a proposal from the Agency made in accordance with point 5.3, the Commission shall determine the annual cross-border infrastructure compensation sum which shall be apportioned among TSOs as compensation for the costs incurred as a result of making infrastructure available to host cross-border flows of electricity. If the Commission disagrees with the proposal of the Agency, it shall ask the Agency for a second opinion. 5.2. The annual cross-border infrastructure compensation sum shall be apportioned amongst transmission system operators responsible for national transmission systems in proportion to: (1) transit factor, referring to transits on that national transmission system state as a proportion of total transits on all national transmission systems; (2) load factor, referring to the square of transits of electricity, in proportion to load plus transits on that national transmission system relative to the square of transits of electricity in proportion to load plus transit for all national transmission systems. The transit factor shall be weighted 75 % and the load factor 25 %. 5.3. The Agency shall make the proposal on the annual cross-border infrastructure compensation sum referred to in point 5.1 based on a Union-wide assessment of the infrastructure of electricity transmission associated with facilitating cross-border flows of electricity. The Agency shall undertake its best endeavours to carry out an assessment within two years of the date of application of this Regulation. ENTSO for Electricity shall provide the Agency with all assistance necessary for the purposes of carrying out this assessment. This assessment shall consist of a technical and economic assessment of the forward-looking long-run average incremental costs on an annual basis of making such electricity transmission infrastructure available for cross-border flows of electricity over the relevant period, and shall be based on recognised standard-costing methodologies. Where infrastructure is financed by sources other than charges for access to networks applied in accordance with Article 14 of Regulation (EC) No 714/2009 the assessment of costs of making infrastructure available for cross-border flows of electricity shall be appropriately adjusted to reflect this. This Union-wide assessment of the electricity transmission infrastructure shall include infrastructure in all Member States and third countries participating in the ITC mechanism and in systems operated by transmission system operators who have concluded multi-party agreements referred to in point 3. 5.4. Until such time as the Agency has carried out the assessment referred to in point 5.3 and the Commission has determined the annual cross-border infrastructure compensation sum in accordance with point 5.1, the annual cross-border infrastructure compensation sum shall be EUR 100 000 000. 5.5. When making the proposal referred to in point 5.1, the Agency shall also provide its opinion to the Commission as to suitability of using long run average incremental costs for the assessment of the costs of making infrastructure available for hosting cross-border flows of electricity. 6. Contributions to the ITC Fund 6.1. The transmission system operators shall contribute to the ITC fund in proportion to the absolute value of net flows onto and from their national transmission system as a share of the sum of the absolute value of net flows onto and from all national transmission systems. 7. Transmission system use fee on third country imports and exports of electricity. 7.1. A transmission system use fee shall be paid on all scheduled imports and exports of electricity from all third countries where: (1) that country has not concluded agreement with the Union whereby it has adopted and is applying Union law in the field of electricity; or (2) the transmission system operator responsible for the system from which electricity is imported or to which electricity is exported has not concluded a multi-party agreement referred to in point 3. This fee shall be expressed in Euros per megawatt hour. 7.2. Each participant in the ITC Mechanism shall levy the transmission system use fee on scheduled imports and exports of electricity between the national transmission system and the transmission system of the third country. 7.3. The transmission system use fee for each year shall be calculated in advance by ENTSO for Electricity. It shall be set at the estimated contribution per megawatt hour transmission system operators from a participating country would make to the ITC Fund based on projected cross-border flows of electricity for the relevant year. PART B Guidelines for A Common Regulatory Approach to Transmission Charging 1. Annual average transmission charges paid by producers in each Member State shall be within the ranges set out in point 3. 2. Annual average transmission charges paid by producers is annual total transmission tariff charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of a Member State. For the calculation set out at Point 3, transmission charges shall exclude: (1) charges paid by producers for physical assets required for connection to the system or the upgrade of the connection; (2) charges paid by producers related to ancillary services; (3) specific system loss charges paid by producers. 3. The value of the annual average transmission charges paid by producers shall be within a range of 0 to 0,5 EUR/MWh, except those applying in Denmark, Sweden, Finland, Romania Ireland, Great Britain and Northern Ireland. The value of the annual average transmission charges paid by producers in Denmark, Sweden and Finland shall be within a range of 0 to 1,2 EUR/MWh. Annual average transmission charges paid by producers in Ireland, Great Britain and Northern Ireland shall be within a range of 0 to 2,5 EUR/MWh, and in Romania within a range of 0 to 2,0 EUR/MWh. 4. The Agency shall monitor the appropriateness of the ranges of allowable transmission charges, taking particular account of their impact on the financing of transmission capacity needed for Member States to achieve their targets under the Directive 2009/28/EC (2) of the European Parliament and of the Council and their impact on system users in general. 5. By 1 January 2014 the Agency shall provide its opinion to the Commission as to the appropriate range or ranges of charges for the period after 1 January 2015. (1) OJ L 198, 20.7.2006, p. 18. (2) OJ L 140, 5.6.2009, p. 16.

Summary: Electricity in the EU — Inter-Transmission System Operator Compensation (ITC) Electricity in the EU — Inter-Transmission System Operator Compensation (ITC) SUMMARY OF: Regulation (EU) No 838/2010 — guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging WHAT IS THE AIM OF THIS REGULATION? It aims to provide a mechanism and guidelines for: compensating electricity transmission system operators (TSOs)* for the cost of hosting cross-border electricity flows on their networks; how this compensation is calculated. KEY POINTS TSOs receive compensation for hosting cross-border flows of electricity on their networks, including for corresponding losses through an Inter-Transmission Compensation (ITC) fund established and administered by the European Network of Transmission System Operators for Electricity (ENTSOE), which was set up under Article 5 of Regulation (EC) No 714/2009. The ITC framework is overseen by the Agency for the Co-operation of Energy Regulators (ACER), set up by Regulation (EC) No 713/2009. Contribution to the fund TSOs contribute proportionately to the ITC fund based on electricity flows onto and from their national transmission system. Participation Regulatory authorities ensure that TSOs participate in the ITC mechanism and that no additional charges for hosting cross-border flows of electricity are included in charges applied by transmission system operators for access to networks. TSOs from non-EU countries who apply EU law in the field of electricity or have entered into multi-party agreements are entitled to participate in the ITC mechanism. Use fee Each participant in the ITC mechanism charges a transmission system ‘use fee’ on electricity imports and exports of electricity between the national transmission system and the transmission system of a non-EU country, unless it is has agreed to apply EU law in the field of electricity, or where there is no multi-party agreement. The ‘use fee’ for each year is set by ENTSO-E at the estimated contribution per megawatt hour TSOs from a participating country would make to the ITC Fund based on projected cross-border electricity flows for the relevant year. Charges The annual average transmission charges paid by producers is calculated as: the annual total transmission tariff charges paid by producers divided by the total measured energy injected annually by producers to the transmission system of an EU country. These charges exclude: infrastructure charges; charges paid by producers related to ancillary services; specific system loss charges paid by producers. The allowable annual average transmission charges paid by producers is as follows: Denmark, Sweden and Finland: 0 to 1.2 €/MWh; Ireland, Great Britain and Northern Ireland: 0 to 2.5 €/MWh; Romania: 0 to 2.0 €/MWh; other participating countries: 0 to 0.5 €/MWh. ENTSO-E monitors how appropriate these allowable charge ranges are, taking account of their impact on transmission capacity financing for EU countries. FROM WHEN DOES THIS REGULATION APPLY? It has applied since 3 March 2011. BACKGROUND See also: Inter-TSO compensation mechanism (Agency for the Cooperation of Energy Regulators). KEY TERMS Transmission system operator (TSO): a natural or legal person responsible for operating, ensuring the maintenance of and, if necessary, developing the transmission system in a given area and, where applicable, its interconnections with other systems, and for ensuring the long-term ability of the system to meet reasonable demands for the transmission of electricity. MAIN DOCUMENT Commission Regulation (EU) No 838/2010 of 23 September 2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (OJ L 250, 24.9.2010, pp. 5-11) RELATED DOCUMENTS Regulation (EC) No 713/2009 of the European Parliament and of the Council of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators (OJ L 211, 14.8.2009, pp. 1-14) Amendments to Regulation (EC) No 713/2009 have been incorporated in the original text. This consolidated version is for documentary purposes only. Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) No 1228/2003 (OJ L 211, 14.8.2009, pp. 15-35) See consolidated version. last update 24.05.2019


15.7.2010 EN Official Journal of the European Union L 180/7 COUNCIL REGULATION (EU, EURATOM) No 617/2010 of 24 June 2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union and repealing Regulation (EC) No 736/96 THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 337 thereof, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 187 thereof, Having regard to the proposal from the European Commission, Having regard to the opinion of the European Parliament, Whereas: (1) Obtaining an overall picture of the development of investment in energy infrastructure in the Union is essential for the Commission to perform its tasks in the field of energy. The availability of regular and up-to-date data and information should enable the Commission to make the necessary comparisons, evaluations or to propose relevant measures based on appropriate figures and analysis, in particular concerning the future energy supply-demand balance. (2) The energy landscape within and outside the Union has changed significantly in recent years and makes investment in energy infrastructure a crucial issue for securing the Union’s energy supply, for the functioning of the internal market and for the transition towards a low-carbon energy system the Union has begun. (3) The new energy context requires significant investment in all kinds of infrastructure in all energy sectors as well as the development of new types of infrastructure and new technologies to be taken up by the market. The liberalisation of the energy sector and the further integration of the internal market give a more prominent role to economic operators for investment. At the same time, new policy requirements such as targets affecting the fuel mix will alter Member States’ policies towards new and/or modernised energy infrastructure. (4) In this context, greater attention should be paid to investment in energy infrastructure in the Union, in particular with a view to anticipating problems, promoting best practices and establishing greater transparency on the future development of the Union’s energy system. (5) The Commission and in particular its Market Observatory for Energy should therefore have at its disposal accurate data and information on investment projects, including decommissioning, in the most significant components of the energy system of the Union. (6) Data and information regarding foreseeable developments in production, transmission and storage capacities and projects in the various energy sectors are of interest to the Union and important to future investment. It is therefore necessary to ensure that the Commission is notified of investment projects on which construction or decommissioning work has started or on which a final investment decision has been taken. (7) Pursuant to Articles 41 and 42 of the Euratom Treaty, undertakings are under an obligation to notify their investment projects. It is necessary to supplement such information with, in particular, a regular reporting on the implementation of investment projects. Such additional reporting is without prejudice to Articles 41 to 44 of the Euratom Treaty. (8) In order for the Commission to have a consistent view of the future developments of the Union’s energy system as a whole, a harmonised reporting framework for investment projects based on updated categories for official data and information to be transmitted by the Member States is necessary. (9) Member States should, to this end, notify to the Commission, data and information on investment projects in energy infrastructure concerning production, storage and transport of oil, natural gas, electricity, including electricity from renewable sources, bio-fuels and the capture and storage of carbon dioxide planned or under construction in their territory, including interconnections with third countries. Undertakings concerned should be under an obligation to notify to the Member State the data and information in question. (10) Given the time horizon of investment projects in the energy sector, reporting every two years should be sufficient. (11) With a view to avoiding disproportionate administrative burdens and to minimise costs to Member States and undertakings in particular for small and medium enterprises, this Regulation should give the possibility to exempt Member States and undertakings from reporting obligations provided that equivalent information is supplied to the Commission pursuant to energy sector-specific legal acts, adopted by the institutions of the Union, aiming at achieving the objectives of competitive energy markets in the Union, of sustainability of the energy system of the Union and of the security of energy supply to the Union. Any duplication of reporting requirements specified in the third internal market package for electricity and natural gas should therefore be avoided. (12) To process data as well as to simplify and secure data notification, the Commission and in particular its Market Observatory for Energy should be able to take all appropriate measures to that effect, in particular the operation of integrated IT tools and procedures. (13) The protection of individuals with regard to the processing of personal data by the Member States is governed by Directive 95/46/EC of the European Parliament and of the Council (1), while the protection of individuals with regard to the processing of personal data by the Commission is governed by Regulation (EC) No 45/2001 of the European Parliament and of the Council (2). This Regulation leaves those provisions intact. (14) Member States, or their delegated entities, and the Commission should preserve the confidentiality of commercially sensitive data and information. Therefore, Member States or their delegated entities should, with the exception of data and information related to crossborder transmission projects, aggregate such data and information at national level before submitting it to the Commission. If required the Commission should further aggregate this data in such a way that no details concerning individual undertakings and installations are disclosed or can be inferred. (15) The Commission and in particular its Market Observatory for Energy should provide a regular and cross-sector analysis of the structural evolution and perspectives of the Union energy system and, where appropriate, more focused analysis on certain aspects of this energy system. This analysis should in particular contribute to identifying possible infrastructure and investment gaps in view of an energy supply and demand balance. The analysis should also form a contribution to a discussion at Union level about energy infrastructures and should therefore be forwarded to the European Parliament, the Council and the European Economic and Social Committee and made available to interested parties. (16) The Commission may be assisted by experts from Member States or any other competent experts, with a view to developing a common understanding of potential infrastructure gaps and associated risks and to fostering transparency regarding future developments. (17) Building as far as possible on the notification format used under Commission Regulation (EC) No 2386/96 (3) which is applying Council Regulation (EC) No 736/96 of 22 April 1996 on notifying the Commission of investment projects of interest to the Community in the petroleum, natural gas and electricity sectors (4), and after consultation of national experts, the technical measures necessary for the implementation of this Regulation should be adopted by the Commission. (18) Given the extent of amendments necessary to adapt it to today’s energy challenges and for the sake of clarity, Regulation (EC) No 736/96 should be repealed and replaced by a new Regulation, HAS ADOPTED THIS REGULATION: Article 1 Subject matter and scope 1. This Regulation establishes a common framework for the notification to the Commission of data and information on investment projects in energy infrastructure in the oil, natural gas, electricity, including electricity from renewable sources, and bio-fuel sectors, and on investment projects related to the capture and storage of carbon dioxide produced by these sectors. 2. This Regulation shall apply to investment projects of the types listed in the Annex on which construction or decommissioning work has started or on which a final investment decision has been taken. Member States may furthermore submit any estimated data or preliminary information on investment projects of the types listed in the Annex on which construction work is scheduled to start within five years and to those which are scheduled to be decommissioned within three years, but for which a final investment decision has not been taken. Article 2 Definitions For the purpose of this Regulation, the following definitions shall apply: 1. ‘infrastructure’ means any type of installations or part of installations related to production, transmission and storage; 2. ‘investment projects’ means projects aiming at: (i) building new infrastructure; (ii) transforming, modernising, increasing or reducing capacities of existing infrastructure; (iii) partial or total decommissioning of existing infrastructure; 3. ‘final investment decision’ means the decision taken at the level of an undertaking to definitively earmark funds towards the investment phase of a project, the investment phase meaning the phase during which construction or decommissioning takes place and capital costs are incurred. The investment phase excludes the planning phase, during which project implementation is prepared and which includes, where appropriate, a feasibility assessment, preparatory and technical studies, obtaining licences and authorisations and incurring capital costs; 4. ‘investment projects under construction’ means investment projects for which construction has started and capital costs are incurred; 5. ‘decommissioning’ means the phase where an infrastructure is permanently taken out of operation; 6. ‘production’ means the generation of electricity and the processing of fuels, including bio-fuels; 7. ‘transmission’ means the transport of energy sources or products or carbon dioxide, through a network, in particular: (i) through pipelines, other than upstream pipeline network and other than the part of pipelines primarily used in the context of local distribution; or (ii) through extra high voltage and high-voltage interconnected systems and other than the systems primarily used in the context of local distribution; 8. ‘storage’ means the stocking on a permanent or temporary basis of energy or energy sources in above-ground or underground infrastructure or geological sites or containment of carbon dioxide in underground geological formations; 9. ‘undertaking’ means any natural or legal private or public person, deciding or implementing investment projects; 10. ‘energy sources’ means: (i) primary energy sources, such as oil, natural gas or coal; (ii) transformed energy sources, such as electricity; (iii) renewable energy sources including hydroelectricity, biomass, biogas, wind, solar, tidal, wave and geothermal energy; and (iv) energy products, such as refined oil products and bio-fuels; 11. ‘specific body’ means a body entrusted by any energy sector-specific legal act of the Union with the preparation and adoption of Union-wide multi-annual network development and investment plans in energy infrastructure, such as the European network of transmission system operators for electricity (‘ENTSO-E’) referred to in Article 4 of Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity (5) and the European network for transmission system operators for gas (‘ENTSO-G’) referred to in Article 4 of Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks (6). Article 3 Notification of data 1. While keeping the collection and reporting burden proportionate, Member States or the entities to which they delegate this task to shall compile all data and information specified in this Regulation from 1 January 2011 and from then onwards every two years. They shall notify the data and relevant project information specified in this Regulation to the Commission in 2011, that year being the first reporting year, and from then onwards every two years. This notification shall be made in aggregated form, except for data and relevant information relating to crossborder transmission projects. Member States or their delegated entities shall notify aggregated data and relevant project information by 31 July of the reporting year concerned. 2. Member States or their delegated entities are exempted from the obligations set out in paragraph 1, provided that, and to the extent that, pursuant to energy sector-specific Union law or the Euratom Treaty: (a) the concerned Member State or its delegated entity has already notified to the Commission data or information equivalent to the requirements of this Regulation and has indicated the date of the notification and the specific legal act concerned; or (b) a specific body is entrusted with the preparation of a multi-annual investment plan in energy infrastructure at Union level and compiles to this end data and information equivalent to the requirements of this Regulation. In this case and for the purposes of this Regulation, the specific body shall notify all the relevant data and information to the Commission. Article 4 Data sources The undertakings concerned shall notify the data or information referred to in Article 3 to the Member States, or their delegated entities, in whose territory they are planning to carry out investment projects before 1 June of each reporting year. The data or information notified shall reflect the situation of investment projects as of 31 March of the relevant reporting year. The first paragraph shall not apply to undertakings where the Member State concerned decides to use other means of supplying the Commission with the data or information referred to in Article 3. Article 5 Content of the notification 1. With regard to investment projects of the types listed in the Annex, the notification provided for in Article 3 shall indicate, where appropriate: (a) the volume of the capacities planned or under construction; (b) the type and main characteristics of infrastructure or capacities planned or under construction, including the location of crossborder transmission projects, if applicable; (c) the probable year of commissioning; (d) the type of energy sources used; (e) the installations capable of responding to security of supply crises, such as equipment enabling reverse flows or fuel switching; and (f) the equipment of carbon capture systems or retrofitting mechanisms for carbon capture and storage. 2. With regard to any proposed decommissioning of capacities, the notification provided for in Article 3 shall indicate: (a) the character and the capacity of the infrastructure concerned; and (b) the probable year of decommissioning. 3. Any notification under Article 3 shall include where appropriate the total volume of installed production, transmission and storage capacities which are in place at the beginning of the reporting year concerned or whose operation is interrupted for a period exceeding three years. Member States, their delegated entities or the specific body referred to in Article 3(2)(b) may add to their notifications relevant comments, such as comments on delays or obstacles to the implementation of investment projects. Article 6 Quality and publicity of data 1. Member States, their delegated entities or, where appropriate, the specific bodies shall aim to ensure the quality, relevance, accuracy, clarity, timeliness and coherence of data and information they notify to the Commission. In case of specific bodies, the data and information notified may be accompanied by appropriate comments from Member States. 2. The Commission may publish data and information forwarded pursuant to this Regulation, in particular in analyses referred to in Article 10(3), provided that the data and information are published in an aggregated form and that no details concerning individual undertakings and installations are disclosed or can be inferred. 3. Member States, the Commission, or their delegated entities shall each preserve the confidentiality of commercially sensitive data or information in their possession. Article 7 Implementing provisions Within the limits laid down by this Regulation, the Commission shall adopt, by 31 October 2010, the provisions necessary for the implementation of this Regulation, concerning the form and other technical details of the notification of data and information referred to in Articles 3 and 5. Article 8 Data processing The Commission shall be responsible for developing, hosting, managing and maintaining the IT resources needed to receive, store and carry out any processing of the data or information on energy infrastructure notified to the Commission pursuant to this Regulation. Article 9 Protection of individuals with regards to the processing of data This Regulation is without prejudice to Union law and, in particular, does not alter Member States’ obligations with regard to the processing of personal data, as laid down by Directive 95/46/EC, or the obligations incumbent upon the Union’s institutions and bodies under Regulation (EC) No 45/2001 with regard to the processing of personal data by them in the course of their duties. Article 10 Monitoring and reporting 1. On the basis of data and information forwarded and, if appropriate, of any other data sources including data purchased by the Commission, and taking into account relevant analyses such as the multi-annual network development plans for gas and for electricity, the Commission shall forward to the European Parliament, to the Council and to the European Economic and Social Committee and shall publish every two years a cross-sector analysis of the structural evolution and perspectives of the energy system of the Union. This analysis shall aim in particular at: (a) identifying potential future gaps between energy demand and supply that are of significance from an energy policy perspective of the Union; (b) identifying investment obstacles and promoting best practices to address them; and (c) increasing transparency for market participants and potential market entrants. On the basis of this data and information, the Commission may also provide any specific analysis deemed necessary or appropriate. 2. In preparing the analyses referred to in paragraph 1, the Commission may be assisted by experts from Member States and/or any other experts, professional associations with specific competence in the area concerned. The Commission shall provide all Member States with an opportunity to comment on the draft analyses. 3. The Commission shall discuss the analyses with interested parties, such as ENTSO-E, ENTSO-G, the Gas Coordination Group and the Oil Supply Group. Article 11 Review ‘By 23 July 2015, the Commission shall review the implementation of this Regulation, and present a report on the results of this review to the European Parliament and to the Council.’. In the review, the Commission shall, inter alia, examine the possible extension of the scope to include the extraction of gas, oil and coal. Article 12 Repeal Regulation (EC) No 736/96 shall be repealed. Article 13 Entry into force This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Luxembourg, 24 June 2010. For the Council The President J. BLANCO LÓPEZ (1) OJ L 281, 23.11.1995, p. 31. (2) OJ L 8, 12.1.2001, p. 1. (3) OJ L 326, 17.12.1996, p. 13. (4) OJ L 102, 25.4.1996, p. 1. (5) OJ L 211, 14.8.2009, p. 15. (6) OJ L 211, 14.8.2009, p. 36. ANNEX INVESTMENT PROJECTS 1. OIL 1.1. Refining — Distillation plants with a capacity of not less than 1 million tonnes a year, — extension of distilling capacity beyond 1 million tonnes a year, — reforming/cracking plants with a minimum capacity of 500 tonnes a day, — desulphurisation plants for residual fuel oil/gas oil/feedstock/other petroleum products, Chemical plants which do not produce fuel oil and/or motor fuels, or which produce them only as by-products, are excluded. 1.2. Transport — Crude oil pipelines with a capacity of not less than 3 million metric tonnes a year, and extension or lengthening of these pipelines, which are not less than 30 kilometres long, — petroleum product pipelines with a capacity of not less than 1,5 million tonnes a year, and extension or lengthening of these pipelines, which are not less than 30 kilometres long, — pipelines which constitute essential links in national or international interconnecting networks and pipelines and projects of common interest identified in the guidelines established under Article 171 of the Treaty on the Functioning of the European Union (‘TFEU’) (1). Pipelines for military purposes and those supplying plants outside the scope of point 1.1. are excluded. 1.3. Storage — Storage installations for crude oil and petroleum products (installations with a capacity of 150 000 m3 or more or, in the case of tanks, with a capacity not less than 100 000 m3), Tanks intended for military purposes and those supplying plants outside the scope of point 1.1. are excluded. 2. GAS 2.1. Transmission — Gas, including natural gas and biogas, transport pipelines that form part of a network which mainly contains high-pressure pipelines, excluding pipelines that form part of an upstream pipeline network and excluding the part of high-pressure pipelines primarily used in the context of local distribution of natural gas, — pipelines and projects of common interest identified in the guidelines established under Article 171 TFEU (2). 2.2. LNG terminals — Terminals for the importation of liquefied natural gas, with a regasification capacity of 1 billion m3 per year or more. 2.3. Storage — Storage installations connected to the transport pipelines referred to in point 2.1. Gas pipelines, terminals and installations for military purposes and those supplying chemical plants which do not produce energy products, or which produce them only as by-products, are excluded. 3. ELECTRICITY 3.1. Production — Thermal and nuclear power stations (generators with a capacity of 100 MWe or more), — biomass/bioliquids/waste power generation installations (with a capacity of 20 MW or more), — power stations with cogeneration of electricity and useful heat (installations with an electrical capacity of 20 MW or more), — hydro-electric power stations (installations having a capacity of 30 MW or more), — wind power farms with a capacity of 20 MW or more, — concentrated solar thermal and geothermal installations (with a capacity of 20 MW or more), — photovoltaic installations (with a capacity of 10 MW or more). 3.2. Transmission — Overhead transmission lines, if they have been designed for the voltage commonly used at the national level for the interconnection lines, and provided they have been designed for a voltage of 220 kV or more, — underground and submarine transmission cables, if they have been designed for a voltage of 150 kV or more, — projects of common interest identified in the guidelines established under Article 171 TFEU (3). 4. BIOFUEL 4.1. Production — Installations that are able to produce or refine bio-fuels (installations with a capacity of 50 000 tonnes/year or more). 5. CARBON DIOXIDE 5.1. Transport — CO2 pipelines related to production installations referred to in points 1.1. and 3.1. 5.2. Storage — Storage installations (storage site or complex with a capacity of 100 kt or more), Storage installations intended for research and technological development are excluded. (1) Decision No 1364/2006/EC of the European Parliament and of the Council of 6 September 2006 laying down guidelines for trans-European energy networks (OJ L 262, 22.9.2006, p. 1) was adopted under Article 155 of the Treaty establishing the European Community. (2) Decision No 1364/2006/EC was adopted under Article 155 of the EC Treaty. (3) Decision No 1364/2006/EC was adopted under Article 155 of the EC Treaty.

Summary: Information on investment projects in energy infrastructure Information on investment projects in energy infrastructure Substantial investment in European energy infrastructure is required in order to guarantee the European Union (EU) a secure energy supply, to contribute to the smooth functioning of the internal energy market and to transform the European energy system into a low-carbon system. The European Commission should have access to regular information on investment projects in energy infrastructure within the EU. This Regulation meets this requirement by establishing a framework for the exchange of data and information on future production, transmission and storage capacities for energy. ACT Council Regulation (EU, Euratom) No 617/2010 of 24 June 2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union and repealing Regulation (EC) No 736/96. SUMMARY This Regulation defines a common framework for the notification to the European Commission of information relating to investment projects * in energy infrastructure *. Sectors and types of investment projects concerned This Regulation applies to energy infrastructure in the following sectors: oil (refining, transport and storage); natural gas (transmission, LNG terminals and storage); electricity (production and transmission); biofuel (production); carbon dioxide (transport and storage). Notification of information to the Commission In the case of infrastructure which is planned or under construction, the following data shall be notified to the Commission: the volume of the capacities planned or under construction; the type and main characteristics of infrastructure or capacities planned or under construction; the probable year of commissioning; the energy source used; the installations capable of responding to security of supply crises; the equipment of carbon capture systems. With regard to decommissioning, the Commission shall receive information on the character and the capacity of the infrastructure concerned, and the probable year of decommissioning. Member States shall collect this data from the undertakings which make the investments concerned or by any other equivalent means. Member States shall notify the Commission of this data in aggregated form by 31 July of the reporting year. The first reporting year shall be 2011 and from then onwards every two years. This task may be delegated to a specific body *. Member States may present estimated or preliminary information on investment projects for infrastructure falling within the scope of the Regulation if the work is scheduled to start within five years or for which decommissioning is scheduled within three years. When this data is communicated, Member States shall ensure the quality, relevance, accuracy, clarity, timeliness and coherence thereof. The Commission’s role The Commission shall prepare an analysis of investment projects and development perspectives for the European energy system based on the data received. It shall discuss this analysis with interested parties such as the European Network of Transmission System Operators (ENTSO) for electricity, the ENTSO for gas, the Gas Coordination Group, and the Oil Supply Group. The Commission shall present the analysis to the Council, the European Parliament and the Economic and Social Committee, and shall publish its report. The Commission may publish the data that it receives within the limits of personal data protection by virtue of Directive 95/46/EC and on condition that no confidential or sensitive information concerning an undertaking or installation is divulged. This regulation repeals Regulation (EC) No 736/96. Key terms of the Act Investment projects: projects aiming at building new infrastructure, transforming, modernising, increasing or reducing capacities of existing infrastructure, partial or total decommissioning of existing infrastructure. Infrastructure: any type of installations or part of installations related to production, transmission and storage. Specific body: a body entrusted with the preparation and adoption of Union-wide multi-annual network development and investment plans in energy infrastructure. Reference Act Entry into force Deadline for transposition in the Member States Official Journal Regulation (EU, Euratom) No 617/2010 4.8.2010 - OJ L 180 of 15.7.2010 RELATED ACTS Commission Regulation (EU, Euratom) No 833/2010 of 21 September 2010 implementing Council Regulation (EU, Euratom) No 617/2010 concerning the notification to the Commission of investment projects in energy infrastructure within the European Union. This Regulation indicates how Member States are to notify the European Commission of information on investment projects in the field of energy. It repeals Regulation (EC) No 2386/96. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 17 November 2010 – Energy infrastructure priorities for 2020 and beyond – A Blueprint for an integrated European energy network [COM(2010) 677 final – Not published in the Official Journal]. This Communication stresses the need to implement a new European energy infrastructure policy in order to achieve the objectives laid down by the Energy 2020 strategy. By 2020, the European Commission believes that nearly one trillion euros will have to be invested in the European energy system, 200 billion of which will have to be devoted to energy transmission networks alone. Although the costs of these investments are huge, it would be more expensive not to carry them out because national solutions would be 20% more expensive. In the longer term, the Commission wishes to introduce networks of the future comprising European Electricity Highways and European CO2 transport infrastructure. To accelerate the introduction of these projects, permit granting procedures should be made faster and more transparent, and a stable framework for financing should be created. The Commission therefore intends to propose new tools combining existing financial mechanisms with other innovations. Last updated: 07.02.2011