PCI Projects
Projects of Common Interest (PCI) are essential for the implementation of the European energy and climate policy. Affordable, secure and sustainable energy for all its citizens as well as building a low-carbon economy in the European Union are among the top priorities.
In accordance with the Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944 and repealing Regulation (EU) No 347/2013 (so-called new TEN-E Regulation), a list of PCI projects is compiled every two years.
The essential prerequisite for PCI projects is their alignment with the Member States' efforts promoting climate and environment and contribution to the implementation of priority energy infrastructure corridors. In addition, they should also lead to improved security of supply, market integration and competition.
The new TEN-E regulation provides for the possibility to grant PCI status to investment projects contributing to the emergence of integrated European hydrogen infrastructure through the implementation of hydrogen transmission and storage projects and facilities for the off-take and regasification of liquefied hydrogen or hydrogen blended with other chemical substances (e.g. ammonia).
PCI projects may benefit from best practice under the TEN-E Regulation, such as accelerated permitting process and special regulatory arrangements provided for by the Regulation 2022/869. Under certain conditions, the PCI status also preconditions the eligibility for application for funding from the Connecting Europe Facility (CEF).
On 28 November 2023, the first PCI list under the new TEN-E Regulation was published. For the first time, it includes investment projects involving hydrogen transmission and storage, as well as regasification of liquid hydrogen or hydrogen derivatives.
The latest PCI list contains also a cross-border hydrogen network project submitted by GAZ-SYSTEM together with transmission system operators from Finland, the Baltic states and Germany being one of the priority corridors defined in the new TEN-E Regulation:
In accordance with the Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944 and repealing Regulation (EU) No 347/2013 (so-called new TEN-E Regulation), a list of PCI projects is compiled every two years.
The essential prerequisite for PCI projects is their alignment with the Member States' efforts promoting climate and environment and contribution to the implementation of priority energy infrastructure corridors. In addition, they should also lead to improved security of supply, market integration and competition.
The new TEN-E regulation provides for the possibility to grant PCI status to investment projects contributing to the emergence of integrated European hydrogen infrastructure through the implementation of hydrogen transmission and storage projects and facilities for the off-take and regasification of liquefied hydrogen or hydrogen blended with other chemical substances (e.g. ammonia).
PCI projects may benefit from best practice under the TEN-E Regulation, such as accelerated permitting process and special regulatory arrangements provided for by the Regulation 2022/869. Under certain conditions, the PCI status also preconditions the eligibility for application for funding from the Connecting Europe Facility (CEF).
On 28 November 2023, the first PCI list under the new TEN-E Regulation was published. For the first time, it includes investment projects involving hydrogen transmission and storage, as well as regasification of liquid hydrogen or hydrogen derivatives.
The latest PCI list contains also a cross-border hydrogen network project submitted by GAZ-SYSTEM together with transmission system operators from Finland, the Baltic states and Germany being one of the priority corridors defined in the new TEN-E Regulation:
- Baltic Energy Market Interconnection Plan in hydrogen – BEMIP Hydrogen:
Reduction of CO2 emissions
The PCI projects will contribute to increased use of natural gas as a low-carbon energy source for residential consumers, power generation, district heating and other industries. The implementation of GAZ-SYSTEM's priority projects will enable an effective transformation towards low-carbon energy sources. This is extremely important, especially bearing in mind that in Poland high-emission fuels make up a significant part of the national energy mix.
Supporting the development of renewables
The growth of investment in RES, chiefly photovoltaic and wind energy has been noticeable in Poland. In this context, the role of natural gas, which will provide a reliable and flexible supply of energy in the event of adverse weather conditions (lack of sunshine and wind), becomes particularly important.
Air quality
Air pollution caused by the combustion of high-emission fuels poses a serious threat to health and adversely affects the quality of life. Natural gas is an energy source that can be used efficiently and help solve the problems of emissions of sulphur oxides, nitrogen oxides and other pollutants. This will be enabled both by the efficient connection of individual and industrial consumers, especially in the heating sector, to the gas network, but also through increased use of LNG and CNG in the transport sector.
Security and diversification of gas supply
The PCI status granted to GAZ-SYSTEM’s projects confirms that they are of key importance to increasing the security and degree of diversification of natural gas supply, and to building an integrated and competitive natural gas market in Central Europe and the Baltic region. The diversification of supply sources and the resulting stability and security of gas supply will also reduce the vulnerability of the national transmission system to disruptions in gas supply, which will have a positive impact on the efficient distribution of natural gas to end consumers.
Competition
The planned investments will have a positive impact on the development of efficiently functioning natural gas markets in the region and thus, by providing access to new sources of gas supply, and provide access to gas on more favourable price terms. Once adequate diversification of gas supply sources is achieved, the attractiveness of natural gas in relation to other energy sources will increase in the energy markets, and so will also the competition between the suppliers (i.e. gas-to-gas competition). This will drive the reduction of gas prices for end consumers.
Significance of the Polish natural gas market at the regional level
The direct connection to fields on the Norwegian Continental Shelf, increased LNG import capacity (through the LNG terminal in Świnoujście and LNG Gdańsk) as well as the development construction of gas interconnections between the Polish gas network and the neighbouring countries (Slovakia and Lithuania) lay the foundations for the development of the Polish gas market, and in the future will enable the creation of a regional gas hub.
Sectoral integration
The creation of a low-carbon economy requires significant investment. It is therefore crucial to apply solutions which, on the one hand, leverage the potential offered by the various sectors of the economy and, on the other, are adapted to socio-economic circumstances. Closer integration of the natural gas, electricity and heating sectors will help in the application of efficient solutions that will be more advantageous for market participants and energy consumers.
The PCI projects will contribute to increased use of natural gas as a low-carbon energy source for residential consumers, power generation, district heating and other industries. The implementation of GAZ-SYSTEM's priority projects will enable an effective transformation towards low-carbon energy sources. This is extremely important, especially bearing in mind that in Poland high-emission fuels make up a significant part of the national energy mix.
Supporting the development of renewables
The growth of investment in RES, chiefly photovoltaic and wind energy has been noticeable in Poland. In this context, the role of natural gas, which will provide a reliable and flexible supply of energy in the event of adverse weather conditions (lack of sunshine and wind), becomes particularly important.
Air quality
Air pollution caused by the combustion of high-emission fuels poses a serious threat to health and adversely affects the quality of life. Natural gas is an energy source that can be used efficiently and help solve the problems of emissions of sulphur oxides, nitrogen oxides and other pollutants. This will be enabled both by the efficient connection of individual and industrial consumers, especially in the heating sector, to the gas network, but also through increased use of LNG and CNG in the transport sector.
Security and diversification of gas supply
The PCI status granted to GAZ-SYSTEM’s projects confirms that they are of key importance to increasing the security and degree of diversification of natural gas supply, and to building an integrated and competitive natural gas market in Central Europe and the Baltic region. The diversification of supply sources and the resulting stability and security of gas supply will also reduce the vulnerability of the national transmission system to disruptions in gas supply, which will have a positive impact on the efficient distribution of natural gas to end consumers.
Competition
The planned investments will have a positive impact on the development of efficiently functioning natural gas markets in the region and thus, by providing access to new sources of gas supply, and provide access to gas on more favourable price terms. Once adequate diversification of gas supply sources is achieved, the attractiveness of natural gas in relation to other energy sources will increase in the energy markets, and so will also the competition between the suppliers (i.e. gas-to-gas competition). This will drive the reduction of gas prices for end consumers.
Significance of the Polish natural gas market at the regional level
The direct connection to fields on the Norwegian Continental Shelf, increased LNG import capacity (through the LNG terminal in Świnoujście and LNG Gdańsk) as well as the development construction of gas interconnections between the Polish gas network and the neighbouring countries (Slovakia and Lithuania) lay the foundations for the development of the Polish gas market, and in the future will enable the creation of a regional gas hub.
Sectoral integration
The creation of a low-carbon economy requires significant investment. It is therefore crucial to apply solutions which, on the one hand, leverage the potential offered by the various sectors of the economy and, on the other, are adapted to socio-economic circumstances. Closer integration of the natural gas, electricity and heating sectors will help in the application of efficient solutions that will be more advantageous for market participants and energy consumers.
In accordance with the TEN-E Regulation, the project promoter – prior to the permitting process – informs stakeholders about the project and the public consultation process with a view to identifying the best location for the investment project and other relevant issues to be taken into account during the investment process.
