Ministry of Energy and Petroleum Expression of Interest for Consultancy Services for Renewable Energy Auctions Study

Republic of Kenya
 

Ministry of Energy and Petroleum
 

Expression of Interest for Consultancy Services for Renewable Energy Auctions Study
 

The Government of Kenya has received financing from the AFD under Credit No. CKE 1038 for Extended Technical Assistance, whose main undertaking is development of a Generation and Transmission master plan, and intends to apply part of the proceeds for consultancy services for renewable energy auctions study.
 

The Feed-in Tariff (FiT) policy was formulated and published in 2008 aimed at attracting private sector investments in electricity generation from renewable energy sources as a means of diversifying national power sources, enhancing national energy security, creating employment and income generation. 

So far the policy has been revised twice, in 2010 to include solar for off grid and 2012 to include grid tie solar, as well as standardized documents. 

Since its formulation, more than 100 projects have been approved. 

The projects are in different phases of development from feasibility studies to PPA establishment. Some are in construction stage and two of them are already generating and feeding to the grid.

The capacities of the already approved and which are likely to reach PPA are approaching the limit as envisaged in the policy. 

Of particular interest are the technologies which are intermittent, particularly, solar and wind, which require to be captured and aligned more accurately in the power sector planning projections. 

Further, with the government’s aim of reducing consumer retail tariffs, there is a need to relook at these technologies and if need be, propose a suitable approach in which the private sector invests in these technologies.
 

Taking into considerations the above factors the government is considering revising the FiT policy from the current first come first served allocation process, to a renewable energy auction process. 

The Ministry of Energy and Petroleum is thus seeking to procure a short term consultancy, to study the introduction of energy auctions in Kenya.

It will suggest the framework, and propose the necessary instruments required. The study will be conducted within a period of not more than six (6) months.

In particular, the Consultant will:
 

1. Review internationally accepted frameworks of promoting and facilitating development of renewable energy for grid connection and relate to their applicability in Kenya.
 

2. Review the evolution and progress of existing FiT policy and supporting frameworks, as well as projects proposed under the FiT policy, to determine challenges and constraints leading to their implementation under this policy and propose specific recommendations to address these weaknesses.
 

3. Undertake a rapid assessment, using existing data, of the renewable energy resource potential in the country relative to the existing and planned electricity grid network and determine the ability of the grid to absorb generation from small scale renewable energy systems as well as impacts/ effect on the quality of grid power and electricity tariffs.
 

4. Advise on the benefits of change from the FiT policy as existing and the the risks associated with the change to energy auction system, and recommend ways to mitigate them.
 

5. Recommend the capacities and timelines for the first cycle of auctions.
 

6. Propose comprehensive and detailed regulatory instruments and guidelines for launching of the energy auctions, including necessary bidding documents and key requirements, frequency of bidding cycles, criteria for determination of renewable energy technology mix and capacities.

The Ministry of Energy and Petroleum now invites eligible consultants to indicate their interest in providing the services.

Interested consultants must provide information indicating that they are qualified to perform the services (e.g. brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.).

Interested firms must submit the following information:.
 

(i) Experience of the firm to undertake works of similar nature(provide list of studies conducted of a similar nature in the last 10 years).
 

(ii) Capability of key personnel, including their qualifications and competence in undertaking the consultancy works.

Such personnel must include specialists in the following disciplines; 

a) Renewable Energy with BSc degree or Equivalent; 

b) Energy Planner/Financial Analyst/Economist with BSc/BA degree or equivalent, 

c) Power Transmission expert with BSc degree or equivalent 

d) Regulatory expert with BSc/BA degree or equivalent.

Knowledge of renewable energy technologies is a must for all the specialists.
 

(iii) A brief outline of the technical approach and methodology for carrying out the study.

Consultants may associate with other firms in the form of a joint venture or a sub consultancy to enhance their qualifications, but one can only belong to ONE consultancy.

Eligible firms are requested to address their “Expression of Interest” for this assignment to:
 

The Principal Secretary
Ministry of Energy and Petroleum
Nyayo House
P. O. Box 30582-00100
Nairobi
 

or be deposited in the Tender Box situated on 24th floor, Nyayo House Building so as to be received not later than 15th October, 2014 at 10.00 am (East African Time). 

The responses will be opened immediately thereafter at the Conference Room, 23rd Floor, in the presence of bidders’ representatives who choose to attend. 

Head of Supply Chain Management Services
For: Principal Secretary