European Gas Market Model

The EGMM is a competitive, dynamic, multi-market equilibrium model that simulated the operation of the wholesale natural gas market across the whole of Europe. The model was used to evaluate the infrastructure developments triggered by the implementation of the TEN-E Regulation by measuring benefits (e.g. socio-economic welfare derived from the higher trading opportunities allowed by the new infrastructure). The main purpose of the modelling carried out for this study was to monetise the realised and potential benefits (in term of socio-economic welfare change) of the projects of common interest (PCIs). In addition, based on modelling outcomes, several indicators were calculated in order to illustrate the effect of the TEN-E Regulation on market integration, competition, CO2 emissions and RES integration.