Heiko Ammerman: “Market-based development has to be at the heart of the North–South Corridor”

Heiko Ammerman: “Market-based development has to be at the heart of the North–South Corridor”

The recent report by Roland Berger, with contributions from CEEP experts, analyses specific energy transmission projects, which together constitute the backbone of the North–South Corridor. Heiko Ammermann, the paper’s co-author, spoke to the CEEP Report following the report’s launch in Krynica, on what is needed to make these projects happen. In your recent report, you recommend establishing a regional North-South Corridor co-ordination platform. How will this body support the project’s development and completion on time? We have found that what is missing to make the Corridor happen is an effective, operational working body which tackles political, regulatory, and financial roadblocks at the same time. To get projects off the ground, we need to bring together the relevant stakeholders, and make sure everybody does their ‘fair share’. Therefore, we propose a platform which advances the corridor on two different levels. On the policy level, it will work towards creating investment-friendly regulatory and political frameworks. This includes making available public financing for strategic Corridor projects with a less favourable business case. On the project level, the platform will provide practical origination support on a case by case basis. It will support feasibility studies, flesh out project proposals with the responsible TSOs, and match projects with potential financiers to realise the Corridor’s implementation step by step. Based on your analysis, there appears to be a gap between market-based financing potential and aspirations underlying the Corridor. How should this balance be tipped? This gap stems from the fact that certain projects in the Corridor mainly make sense from a strategic, or even a geopolitical security of supply perspective, whilst their commercial viability is [...]