Incremental Process - Overview
Incremental processes concern market-based network capacity expansion projects: additional capacity at existing Interconnection Points or the creation of new Interconnection Points, in both cases realized through investments that are underpinned by market commitments. The incremental process (INC) is complementary to network development planning (ENTSOG TYNDP, GRIPs or the Fluxys Investment Plan), as it adds the market perspective concerning readiness to commit on a long term basis to trigger the realisation of specific infrastructure.
In accordance with Commission regulation (EU) 2017/459, adjacent TSOs on each side of Interconnection Points linking entry-exit zones will cooperate during the incremental process. The incremental process is started at least every two years, during odd numbered years, but can also be started in even numbered years. The incremental process is kicked-off by the yearly auctions, which are held in July of each year. The incremental process consists of the following phases:
- Non-binding demand indications, that can be submitted at any time.
- Market demand assessment report (DAR), that will conclude whether the conditions are met to envisage the next steps (and therefore a potential network expansion).
- Design phase, including market consultation and national regulatory agency (NRA) approval of the project(s).
- Publication of the binding project notice.
- Binding allocation of incremental capacity, whereby binding bids for capacity are eventually awarded, before a final investment decision (FID) is taken on the necessary investments.
For the assessment of incremental (or new) projects not in the scope of CAM NC, the open season procedure remains applicable.