1. Brainstorming Session 1: Define the Scope of CBA 3
Brainstorming Session 1: Define the Scope of CBA storage Improvements
Group 1

2. Scope of CBA3.0 Improvements: Storage 1/2
Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
 General principles
- Clear reference to what is STORAGE? (principle concept of storage – specific benefit)
- Flexibility – Holistic treatment?
- Quantify all benefits
- Arbitrage benefits (related with SEW)
- Why a CBA methodology for storage and not for other power plants?
- Contribution to RES integration during lifetime – Seasonal storage effect (related to arbitrage)
General over-arching description of importance/role of storage;
Increased monetisation – greater specificity
SoS (Flexibility and Adequacy)
- Increase system flexibility to the system to integrate RES generation – Storage response related to fault ride capability during active power operation
- Adequacy benefits. Benefits in terms of reducing local reliability of the system (reduces ENS)
- Availability of de-centralised storage (small devices) – value of optimisation in the DSO services – Communication between TSO and DSO. Observability and availability for contributions in local and global.
SoS (Ancillary Services)
- Contribution to the ancillary services – System services like as frequency/voltage management, frequency regulation, increase system inertia & system resilience
- Found a methodology to capture benefits at less than 1 hour resolution
- Not monetisation of ancillary services benefits increases. Capacity market monetisation

3. Scope of CBA3.0 Improvements: Storage 2/2
Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
RES and CO2
- CO2 value – avoided damage in terms of climate impact
- Improve CO2 assessment (dispatched different power plants, reduce CCGT production). Displaced CO2
- Reduced RES curtailment
- RES allocation in long term – contribution of Storage and transmission in terms of time and geography
Avoided Cost (network)
- Quantify the benefits in terms of network investment deferral
- Contribution for saving transmission investment costs in future (relation between short and long term)
- Contribution to savings in congestion managements
Losses
- How are losses treated for storage projects. It is possible that storage projects can reduce losses

4. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
 General principles
Clear reference to what is STORAGE? (principle concept of storage – specific benefit)
Flexibility – Holistic treatment?
Quantify all benefits
Arbitrage benefits (related with SEW)
Why a CBA methodology for storage and not for other power plants?
Contribution to RES integration during lifetime – Seasonal storage effect (related to arbitrage)
- Reference to EC Document
- Definition + Scope of storage (sector coupling)
- Arbitrage benefits (???)
SoS (Flexibility and Adequacy)
Increase system flexibility to the system to integrate RES generation – Storage response related to fault ride capability during active power operation
Adequacy benefits. Benefits in terms of reducing local reliability of the system (reduces ENS)
Availability of de-centralised storage (small devices) – value of optimisation in the DSO services – Communication between TSO and DSO. Observability and availability for contributions in local and global.
SoS Adequacy
- EENS calculation (test for storage and consider technology type)
DSO consideration
- SAIDI and SAIFI calculation
DSO benefits
- Flicker, Power Quality
Coordination TSO and DSO
- Qualitative indicator (total MW of storage under control of TSO)

5. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
SoS (Ancillary Services)
Contribution to the ancillary services – System services like as frequency/voltage management, frequency regulation, increase system inertia (synthetic & synchronous) & system resilience
Found a methodology to capture benefits at less than 1 hour resolution
Not monetisation of ancillary services benefits increases. Capacity market monetisation
Indicators for SoS services:
- Frequency stability, voltage stability and inertia – Avoided costs and avoided CO2 costs
- Storage for balancing energy – Avoided costs
Find a methodology to capture benefits at < 1 hour resolution (???)
RES and CO2
CO2 value – avoided damage in terms of climate impact
Improve CO2 assessment (dispatched different power plants, reduce CCGT production). Displaced CO2
Reduced RES curtailment
RES allocation in long term – contribution of Storage and transmission in terms of time and geography
SEW
- Check for Storage
- Long term effects

6. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
Avoided Cost (network)
Quantify the benefits in terms of network investment deferral
Contribution for saving transmission investment costs in future (relation between short and long term)
Contribution to savings in congestion managements
- Use adequacy metric (EENS and LOLE)
- Local impact
Question 4: What are the most important 3 improvements you consider ENTSO-E should work on in the next CBA 3.0
Principles (4 votes)
Ancillary Services (3 votes)
SoS (2 votes)
Avoided Costs (1 vote)

7. Framing the work of the work-stream - Storage
Objectives of the work-stream
Principles (Rationale and Context – Ref. Regulation)
Ancillary Services (New category (separate from SoS, Avoided costs for frequency, voltage and inertia – New Method)
SoS (evaluate and expand, EENS for Storage based on existing precedents (National Grid)
Deliverable/s
Principles (Improved documents and Consistency)
Ancillary Services (Avoided cost methodology and Test case/Case Study)
SoS (EENS for Storage reviewed and redefined, Cost of new entry for capacity market and DSO consideration – Metric)
Members of the group [type and resource estimation]
Principles (Administrative task – Low impact: Time + people)
Ancillary Services (National TSO, Market design representation, Technical and Third Party (EASE))
SoS (TSO and DSO, Technical and Market design representation)
Timeline
Principles (short – term)
Ancillary Services (Longer time requirement)
SoS (Moderate time requirement)

8. Brainstorming session 1: define the scope for CBA 3.0 improvements
Group 2

9. Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
SoS
Reactive Power Indicator
Flexibility
Considering extreme climate situations
Balancing
Ancillirary Services
Lack of SoS-Figures in last TYNDP. CBA 2 indicators are still generalized.
Difficulties to show the Benefits of SoS for transmission projects
In future scenarios we expect more critical grid situations and we have to show the contribution of the transmission projects
SEW
The only indicator which is per definition monitised. Important for NPV
To capture all the benefits
Renaming SEW. Not reflecting the true meaning
Split SEW in a Socio and Economical Part
Additional benefits of RES
The main reason for energy transition is not captured yet.
NTC
Explanation is unclear. Main input for CBA-Calculations
More accurate and harmonized methodology
Redispatch
Explanation of Redispatchsimulations Methodology
Everybody understands everything
Consistency NDP & TYNDP
To make TYNDP more reader friendly

10. What is the CBA impact on the overall investment decision process
If a business case is given for someone
Projects should be assessed in an economic and socio “way”. Two ranking systems for projects.
Monetised Ranking  Investment Decision
Socio Ranking  What is the benefit for the society?
Companys will earn money… Project promoters decides to build a project based on an “own” CBA. CBA in TYNDP is for the public

11. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
 SoS
Reactive Power Indicator
Flexibility
Considering extreme climate situations
Balancing
Ancillirary Services
 We had kind of longer discussion on a possible implementation of this/these indicator/s without coming to a concrete solution
SEW
Split SEW in a Socio and Economical Part
Giving a clear definition of this indicator and clearly explain what is included under it.

12. Framing the work of the work-stream -SEW
Objectives of the work-stream
giving a clear definition of what is meant under this indicator
Renaming the indicator so that it reflects what is covered by it
For monetising the „additional“ benefit of RES and CO2 the outcome of already existing studies should be used
determining the actual impact of CO2 (not only the monetary value as for CO2 costs)
giving a monetary value per ton CO2 and/or per MW/MWh of included RES
Deliverable/s
Monetary values in € per [t],[MW],[MWh]
Members of the group [type and resource estimation]
Project promoters
Academics

13. Result of the vote: most important indicator
6 votes: SEW
4 votes: SoS
3 votes (each): NTC, Redispatch, Consistency (between NDPs and TYNDP)
2 votes (each): Residual Impact, VOLL
1 vote: Losses
0 votes: Storage

14. Brainstorming session 1: define the scope for CBA 3.0 improvements
Group 3

15. define the scope for CBA 3.0 improvements (1/3)
Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
Weighting results for time horizons & scenarios:
Decision are being made by different stakeholders, guidance is needed to compare projects when they rank differently in different years and scenarios (e.g. project X is better in Scenario A in 2030, but project Y is better in Scenario B in 2040)
Guidance for weight of scenarios
Economic lifetime and Discount rate
NPV calculation should properly take into account reasonable lifetimes of infrastructure. Unjust comparison between AC and DC if a single value (25 years) is used for all, because it differs in reality.
Guidance for economic life time and discount rate in CBA, with different values depending on the technology.
Security of Supply:
Adequacy
Flexibility
1) No monetization so far. Relevant to include the monetisation of EENS in the TYNDP.
2) Adequacy is a problem in the extremes, not in ‘normal’ conditions. Monte Carlo analysis can show these extremes.
3) HVDC links can provide ancillary services. That’s an added value to be monetized.
1) Set a VOLL and use it to monetize EENS.
2) More calculations (100s of M. Carlo years)
3) (no specific suggestion; Ancillary services in general should be worked on)
Modelling
Regional differences exist and should be accounted for in simulations (e.g. importance of river flows in Nordic Regions)
Reference network in non ENTSOE countries: how to update? New plants?
More differences between countries (such as generator properties) when constructing input parameter set (extension of PEMMDB)

16. define the scope for CBA 3.0 improvements (2/3)
Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
Redispatch
Effect of an internal reinforcements. Fictitious market area should be better.
Instead of full-network redispatch simulations, use a zonal approach with fictitious market areas.
Capacities:
Internal lines
NTC
Clustering
Clustering: complex / long term projects. 5 year rule is not suitable for some long term projects.
Delta NTC: what about a single line? NTC is 0?
IF single monopole? NTC is 0
Do we consider as « internal line » if between EU border to neighbouring country? Useful to clarify for the reader.
(no specific suggestion)
Offshore grid
« Borders » in projects with both internal and cross border assets > how to interpret modelling and indicators. New type of infrastructures.
E.g., fictitious market area(s) for the offshore grid(s) that are modeled.
Benefit allocation per country
Important to motivate investors. Stakeholders are interested in these figures. National governments/NRAs trust ENTSO-E values.
Report benefits on a per-country basis.

17. define the scope for CBA 3.0 improvements (3/3)
Main topics/indicators that require improvement
Justification on why this is important
What would look this indicator in an ideal environment
Storage
Ancillary services
Type of storages ?
(no specific suggestion; Ancillary services discussion is important)
CBA: which weighting factor for each criterion?
Stakeholders want to know how to trade-off indicators against each other. In the PCI process, the European Commission does something like this. It would be good if it is already done by ENTSO-E.
Provide guidance on how to trade-off CBA (MCA!) criteria against each other.
VOLL
Need to harmonize. Important to monetize adequacy.
Monetized adequacy with VOLL defined in €/MWh
CO2 and RES
Monetization of CO2. important to know about the other sector. (we are focusing on electricity sector but how about CO2 we saved if the quota is used by other sectors?)
1. Define societal value of RES in €/tonne (e.g.: 200 €/tonne)
2. Then you have:
a) CO2 included in SEW through generation costs (e.g.: 30 €/tonne)
b) Additional societal value:
(200 – 30) * “avoided tonnes of CO2”

18. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
Weighting results for time horizons & scenarios:
Guidance for weight of scenarios
Average
Best Estimate as a basis and then range based on the others
Probability assigned to scenario
Define risk.
Goal is to fill in the gap between ENTSOE tasks and the PCI process. Maps of beneficial projects per scenario? Map of projects ok for all scenario? … that’s post processing (also link with NPV computation). Could be done in two weeks.
Economic lifetime and Discount rate
Guidance for economic life time and discount rate in CBA, with different values depending on the technology.
Ask ACER to propose one discount rate and live time for NPV computation per technology (AC and DC).
Security of Supply:
Adequacy
Flexibility
More calculations (100s of MC years)
Result of the Monte Carlo simulations. Look at the MAF how much time it takes.
Adequacy : ENS. Perhaps do a MAF-like assessment at a project-level. Possibly only for few projects. (Is it easy to define which projects needs this analysis?)
Ancillary services
FCR (if allowed to resize the reserves)
(no specific suggestion)

19. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
VOLL
Monetized adequacy with VOLL defined in €/MWh
 External body (ACER) to propose an harmonized value.
You could also compute VOLL dividing Cost of peak units by the LOLE.
CO2 and RES
1. Define societal value of RES in €/tonne (e.g.: 200 €/tonne)
2. Then you have:
a) CO2 included in SEW through generation costs (e.g.: 30 €/tonne)
b) Additional societal value:
(200 – 30) * “avoided tonnes of CO2”
(no specific suggestion)
Modelling
More differences between countries (such as generator properties) when constructing input parameter set
(no specific suggestion)
Redispatch
Instead of full-network redispatch simulations, use a zonal approach with fictitious market areas.

20. Frame the “how” to improve the CBA indicators chosen as necessary to improve in the morning session
main topics/indicators that require improvement – copy paste brainstorming session 1
What would look this indicator in an ideal environment– copy paste brainstorming session 1
How is to be implemented (assumptions on method, view on resources, how long will it take ) – consider doing this in the TYNDP frame where we need to assess around 200 transmission projects and around 30 storage ones)
Capacities:
Internal lines
NTC
Clustering
(no specific suggestion)
 (no specific suggestion)
Offshore grid
E.g., fictitious market area(s) for the offshore grid(s) that are modeled.
Benefit allocation per country
Report benefits on a per-country basis
Storage
CBA: which weighting factor for each criterion?

21. Important elements to improve
6 votes: SoS – Ancillary services
6 votes: SoS – Adequacy
5 votes: SoS – Value Of Lost Load
5 votes: Defining the (monetized) societal value of reducing CO2 and integrating RES
4 votes: Report benefits per country
3 votes: Guidance for offshore grid assessment
3 votes: Guidance for weighting scenarios
1 or 2 votes for 5 remaining topics

22. Framing the work of the work-stream – SoS : ancillary services
Objectives of the work-stream
Set the scope (define which ancillary services to consider, which time frame, etc.),
How to monetize ?
Deliverable/s
Guidance for scope
Members of the group [type and resource estimation]
TSO experts / modellers
Storage promoters experts
DC and AC experts.
Timeline
(no specific suggestion)

23. Framing the work of the work-stream – SoS - Adequacy: a lot of Monte-Carlo years
Objectives of the work-stream
Check feasibility of doing many more simulation runs
Method to select projects
Deliverable/s
Guideline on how many simulations should be done, which extremes to look at
Members of the group [type and resource estimation]
TSO modelers
Academics
People from the MAF team
Timeline
(no specific suggestion)

24. Framing the work of the work-stream – SoS - VOLL
Objectives of the work-stream
Let an external body (e.g., ACER or EC) define the VOLL in €/MWh for different countries, actors, time frames.
Deliverable/s
VOLL values.
Members of the group [type and resource estimation]
ACER / NRAs
Consumers’ representatives
Timeline
(no specific suggestion)

25. Framing the work of the work-stream – CO2 and RES: define societal value of CO2 and use for additional benefits indicators
Objectives of the work-stream
Define the indicators
Define a methodology
Deliverable/s
(no specific suggestion)
Members of the group [type and resource estimation]
Academics
Economists
Timeline