What governance of cross-border energy infrastructure in the EU to achieve climate neutrality? Revision of the TEN-E regulation

Key Messages

• The revision of the TEN-E regulation is an opportunity to align decisions on energy infrastructure in the European Union (EU) with the climate neutrality objective. Otherwise, there is a risk that substantial public funds are spent on energy infrastructure projects that could become stranded assets and delay decarbonisation.
   
• The governance of EU energy infrastructure choices framed by the TEN-E regulation is currently based on the expertise of gas and electricity transmission system operators. This expertise should be supplemented by a stronger consultation process with energy system stakeholders, as well as with a scientific body, to ensure full consideration of all options for decarbonisation in the development of framework scenarios and in infrastructure financing decisions, including energy efficiency and of sector integration potential.
   
• The governance of TEN-E could be improved by including the contribution of the European Scientific Advisory Board on Climate Change (ESAB)_– established by the Climate Law – to the definition of cost-benefit analysis criteria and the types of long-term scenarios developed by the gas and electricity transmission system operators (“ENTSOs”). ESAB’s participation would increase the transparency of infrastructure planning and the consideration of non-grid solutions to decarbonisation.
   
• The introduction of hydrogen infrastructure into the scope of the TEN-E regulation as proposed by the European Commission should be complemented with sustainability criteria ensuring that this category is not used to finance fossil methane infrastructure in the medium term.