Which Strategy for Implementing Cost-Benefit Analysis of System Infrastructures and Market Design in the European Power Systems?

Based on a benchmark of some emblematic public Cost-Benefit Analyses (CBA) in the European electric system, the article provides recommendations on the optimal strategy for CBA implementation, depending on its context and goals. It revealed among others a strong need in structuring the CBA process, both on methodology and management related aspects. An example of application of the benchmark findings to the changes in Frequency Containment Reserve (FCR) market is provided to illustrate the practical application of the suggested methodological and organizational principles. The presented work leads to the conclusion that implementing a well-structured action and involving essential power system stakeholders, from generation, transmission, distribution, supply and energy services sectors, is crucial for the success of a CBA. This conclusion is decisive for the European electricity market integration and European network codes' implementation, which sometimes rely on the use of CBA whether at European or national level.