Regulatory Guide to Conducting Economic Appraisals of Gas Infrastructure Expansion and Network Plans in the Republic of Macedonia

The project was sponsored by the USAID Bureau for Europe and Eurasia and was implemented by the National Association of Regulatory Utility Commissioners (NARUC) in collaboration with VIS Economic & Energy Consultants S.A. The regulatory guide to conducting economic appraisals of gas infrastructure expansion and network plans in Macedonia was developed to provide a framework for evaluating the economic viability of gas infrastructure projects. The guide outlines the key steps and methodologies for conducting economic appraisals, including the review of underlying assumptions, categorization of gas infrastructure projects, and assessment of project rationale and justification. The guide emphasizes the importance of involving stakeholders in the appraisal process and provides a checklist for reviewing costs and underlying assumptions. It also outlines the financial analysis and economic/cost-benefit analysis methodologies, including the use of sensitivity and risk analysis to assess the potential impacts of gas infrastructure projects. The guide categorizes gas infrastructure projects into different categories based on their scope and complexity, and provides a checklist for each category. It also outlines the key indicators for projects of regional and national importance, including non-monetized indicators such as environmental impact and security of supply. The guide provides a comprehensive framework for conducting economic appraisals of gas infrastructure expansion and network plans in Macedonia, and is intended to support the development of a robust and transparent regulatory framework for the country's gas sector. The appraisal process involves a series of steps, including the review of demand, supply, energy price, and infrastructure scenarios. The guide provides a checklist for reviewing these scenarios and outlines the key considerations for each step. It also emphasizes the importance of sensitivity and risk analysis in assessing the potential impacts of gas infrastructure projects. The guide provides a detailed framework for conducting financial analysis, including the use of financial net present value, rate of return, and impact on tariff. It also outlines the key principles and approach for monetizing benefits in economic/cost-benefit analysis, including the monetization of incremental project impact on gas supply costs, energy costs, environmental impact, and security of supply. The guide provides a comprehensive framework for conducting economic appraisals of gas infrastructure expansion and network plans in Macedonia, and is intended to support the development of a robust and transparent regulatory framework for the country's gas sector. The guide is a valuable resource for regulatory authorities, gas companies, and other stakeholders involved in the development and implementation of gas infrastructure projects in Macedonia.