A Vision for the EU Gas Target Model: the MECO-S Model

The discussion on a target model for European gas network access started at the 18th Madrid Forum in
2010. This model shall provide a unifying vision on the future layout of the European gas market
architecture. That vision shall assist all stakeholders in implementing the 3rd EU energy market
package on the internal gas market in a consistent way. Here is my proposal for the European gas
target model termed MECO-S Model. It is a “Market Enabling, Connecting and Securing Model”
describing an end-state of the gas market to be achieved over time. It rests on three pillars that share a
common foundation, being that economical investments in pipelines are realized: Pillar 1: Structuring
network access to the European gas grid in a way that enables functioning wholesale markets; Pillar 2:
Fostering short- and mid-term price alignment between the functioning wholesale markets by tightly
connecting the markets; Pillar 3: Enabling the establishment of secure supply patterns to the
functioning wholesale markets.