22/12/2014 Clarification: Please note that the Response Due Date for this Procurement Notice is the 19 January 2015.
The National Electric Power Company ("NEPCO") in Jordan owns and operates the Jordanian transmission network which comprises 924 km of 400 kV transmission lines, 3,522 km of 132kV lines and 11,484 MVA of substation capacity. It is 100% state owned and is responsible for purchasing all grid-connected power and supplying it to high voltage industrial consumers and the three distribution companies. The three distribution companies together serve 1.7 million consumers. Residential customers account for approximately 43% of consumption by volume, commercial 17%, industrial 24%, water pumping 14% and street lighting 2%. Losses in the distribution network are at reasonably low levels of c.13%.
The Jordanian power sector operates on a single buyer model in which NEPCO purchases all power and sells it to high voltage consumers and the three distribution companies. Power distribution is divided regionally between three distribution companies ("DISCO"); the Jordanian Electric Power Company limited ("JEPCO"), the Electricity Distribution Company ("EDCO") and the Irbid District Electricity Company ("IDECO"). JEPCO contributes to 60% of the NEPCO peak, EDCO and IDECO 18% each.
The European Bank for Reconstruction and Development (the "EBRD" or the "Bank") now intends to engage a consulting company (the "Consultant") to carry out a market wide study for the Jordanian power market, quantifying the demand response potential by electricity distribution companies and identifying pilot demand response programmes which can be financed by the Bank (the "Assignment").
Demand response ("DR") is the capacity to change electricity usage by end-use consumers from their normal consumption patterns in response to market signals such as time variable electricity prices or incentive payments which are linked to the consumer’s ability to sell demand reduction/ increase at a price. Current market regulations were developed to manage large reliable load from predominately thermal generation and are less well suited to the management of intermittent generation or to facilitate flexible demand. Demand response programmes are increasingly common in North American and European markets as they have the potential to provide significant and multiple benefits to grid operators and end consumers. These are to enhance network security, to aid industrial competitiveness, to minimise and defer the need for investment in the grid network, and importantly to benefit end consumers through lower prices.
The selected Consultant is expected to provide the following services:
(i) state clearly the business case for implementing demand response for both NEPCO and the distribution companies, including estimating the potential financial benefits;
(ii) identify the role that demand response would play in scheduling and operations of NEPCO and the distribution companies, including the daily and monthly price duration and price shape curve;
(iii) determine which LV/ MV consumers would benefit most from their participation in a demand response programme, the "Target Group";
(iv) quantify the technical potential for DR for each DISCO and specifically for the "Target Group";
(v) identify appropriate technology and a programme implementation model;
(vi) establish an implementation plan for the rollout of a pilot programme for the "Target group" with each of the DISCOs; and
(vii) define the regulatory arrangements necessary for DR to participate/ compete alongside other forms of flexible capacity (generation, storage, interconnection) on a level playing field.
Specifically, this would include the following tasks:
• Review and analysis of the market and regulatory framework;
• Technology assessment;
• Establish the business Case for DR including the potential financial benefits;
• Determine the market potential for DR for each DISCO and design appropriate incentive mechanisms;
• Structure pilot DR programmes.
Status of Selection Process: Interested firms or groups of firms are hereby invited to submit expressions of interest.
Assignment Start Date and Duration: The Assignment is expected to start in February 2015 and has an estimated overall duration of 6 months.
Cost Estimate for the Assignment: EUR 250,000 (exclusive of VAT). Subject to availability of funding, the performance of the selected Consultant and the specific needs of the Bank the Assignment may be extended beyond the current scope.
The Consultant must determine whether any VAT would be chargeable on the services and the basis for that determination, without taking into consideration the special status of the Bank as an IFI and state this to the Bank in their response to the Invitation for Expressions of Interest. To the extent that a Consultant incurs input VAT on goods and services purchased in connection with the provision of services (e.g. VAT on airline ticket) which is not otherwise recoverable by the consultant from the local tax authority, the gross cost to the consultant of such expenses shall be treated as a reimbursable expense.
Funding Source: It is expected that the Assignment will be funded by the EBRD Technical Cooperation funds. Contracting will be subject to availability of funding.
Eligibility: There are no eligibility restrictions.
Consultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms with previous project experience in:
• Identifying and structuring investments in the Power sector preferably with experience in DR investments;
• Power transmission and distribution projects, preferably for International Finance Institutions (IFIs) and in the Southern and Eastern Mediterranean region (Jordan, Morocco, Tunisia and Egypt).
It is expected that at least the following key experts/specialists are to be included in the team of the Consultants:
• Team leader with preferably 10 years relevant commercial expertise in leading the implementation of energy transmission and distribution projects, including expertise in demand response programmes;
• Technical expert with preferably 5 years relevant expertise in the implementation of demand response programmes;
• Power market expert with preferably 5 years relevant expertise and in particular experience in the Jordanian market.
Submission Requirements: In order to determine the capability and experience of Consultants seeking to be selected for this Assignment, the information submitted should include the following:
1. Company/group of firms’ profile, organisation and staffing (max. 2-4 pages);
2. Details of previous project experience or similar assignments undertaken in the previous five years, including information on contract value, contracting entity/client, project location/country, duration (mm/yy to mm/yy), expert months provided (if different from duration) , main activities, objectives;
3. CVs of key experts who could be available to work on the Assignment with details of the experts’ professional experience;
4. Completed Consultant Declaration Form and Contact Sheet, the template for which is available from the following web-link: http://www.ebrd.com/pages/workingwithus/procurement/notices/csu/contact_sheet.doc .
The above information should not exceed 10 pages excluding CVs and contact sheet.
The complete expression of interest (including CVs and Contact Sheet) should be submitted, in English, electronically through e-Selection, to reach the Bank not later than the closing date and time (19 January 2015, 23:59 London time). The expression of interest shall be one file (pdf or Word). The EBRD reserves the right to reject applications of firms submitting more than one file. Only if the permissible file size is exceeded (4MB), the Consultant may split the expression of interest into further files.
Bank Contact Person:
European Bank for Reconstruction and Development
One Exchange Square
London EC2A 2JN
Tel: + 44 20 7338 7371
(submissions should be sent through eSelection and NOT to this email address)
1. The selection will normally be made from responses to this notification only. Consultants will not be asked to submit a proposal. The highest-ranked Consultant will be selected from a shortlist and be invited to negotiate the contract, subject to availability of funding.
2. The evaluation criteria are as follows:
• Experience of consultants in identifying and structuring investments in the Power sector preferably with experience in DR investments (40%);
• Power transmission and distribution projects, preferably for International Finance Institutions (IFIs) and in the Southern and Eastern Mediterranean region (20%)
• Calibre of Experts (40%)