Market simulation and analyses of the planned Slovenia-Hungary bi-directional gas interconnectorUploaded: 11 of August, 2017

REKK provided a model-based assessment of the planned Slovenian-Hungarian bidirectional gas interconnection pipeline in order to identify the risks of the project and monetize its benefits.
In line with the recommendations of ACER and ENTSOG, a socio-economic CBA was carried out to capture and monetize the welfare change for all stakeholders (consumers, local producers, long term contract holders, traders, TSOs, SSOs, LNG operators) affected by the implementation of the project. Since the project also has regional price effect, welfare effects were not only monetized for Slovenia and Hungary, but for a region including Austria, Croatia, Hungary, Italy, Romania, Serbia and Slovenia.
Sensitivity of results were tested for: variation in demand; the effect of LTC-expiries; the absence or construcion of Nord Stream 2; and effect of various infrastructure projects (e.g. BRUA,TAP, Turkish Stream, Croatian LNG terminal) impact on the social NPV of the analysed Slovenian HUngarian interconnector.