Consultancy Services for Pre-Feasibility Studies of Private Sector Renewable Energy Mini-Grids

Ministry of Energy and Petroleum
 

Expression of Interest for Consultancy Services for Pre-Feasibility Studies of Private Sector Renewable Energy Mini-Grids

The Government of Kenya has received financing from the IDA for Kenya Electricity Expansion Programme (KEEP) and intends to apply part of the proceeds for consultancy services for Pre-feasibility Studies of Private Sector Renewable Energy Mini-grids.
 

The GoK has sought World Bank assistance for rural electrification in the proposed Kenya Electricity Modernization Project (KEMP). The KEMP intends to include an Off-grid Electrification Component. 

The component will support green-field mini-grid investments to be undertaken by the private sector in partnership with the public sector. 

The mini-grids are likely to serve communities with households, public sector facilities, businesses and industrial loads, typically with about 200 to 3,000 connections (customers). Majority of customers are likely to be households.
 

The development strategy is to remove the principal constraints to engaging the private sector to partner with public sector to deliver electricity services to large number of consumers, powered by renewable energy sources. 

By mitigating these constraints and enhancing confidence, future expansion of services can proceed without or with more limited government or donor support.

In this regard, the Ministry of Energy and Petroleum is thus seeking to procure a short term consultancy, to identify and characterize the optimal renewable electricity hybrid minigrid projects to be developed and operated by the private sector. 

The study will suggest the framework and propose the necessary instruments required for implementation. 

The study will be conducted within a period of not more than six (6) months.
 

In particular, the Consultant will:-
 

1. Baseline Characterization: Investigate the 12 diesel and hybrid mini-grids operated by KPLC and characterize them;
 

2. Site Screening: Undertake site visits and screen the 40 greenfield mini-grid sites identified by MOEP, REA and KPLC rank them and recommend 30 sites and the service territory they would cover.
 

3. Field Data Collection for 30 sites and GIS Mapping: collect data on towns, villages and other community, distance to nearest LV, MV or HV grid or substation, layout of village including major loads, houses, roads, any environmental or social considerations that may affect electricity service and on wind, solar or other renewable resources, for the 30 selected sites and prepare a GIS database and maps:
 

4. Load Forecasting: Design and test survey instrument and conduct rapid assessments of demand and demand growth for households, public sector institutions, water supply, commercial and industrial loads for the selected sites.
 

5. Least Cost Electricity Supply: Using HOMER or any other models, conduct modelling studies and other assessments to determine the optimal configuration of renewable energy.
 

6. Network Reticulation and Connections: For a target connection rate of 65% of households plus other loads, prepare pre-feasibility level MV and LV network reticulation plans for the first three years.
 

7. Investment Requirements and Financial Viability: Estimate at a pre-investment level, the investment costs by the third year and conduct a financial analysis to determine the levelized fixed tariff premium (dollars per kWh) required, assuming that the consumers pay the electricity tariff approved by ERC.
 

8. Recommendations: Based on these assessments recommend the preferred business model(s) and for the 30 sites, prepare a summary of financial, services and other outcomes, BOQ of principal requirements, investment requirements, grant support requirements, risks and risk mitigation plans.
 

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 and Rural Electrification with BSc degree or Equivalent; 

b) Project Economic and Finance/Transactions Specialist(s) with BSc/BA degree or equivalent,

c) System Engineering expert with BSc degree or equivalent 

d) Survey Design Specialist with BSc/BA degree or equivalent. Knowledge of renewable energy technologies and Rural Electrification is a must for all the specialists.

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 submit 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 27th November, 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