POLICIES AND PROCEDURES ENGINEERING SERVICES DEPARTMENT

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1 POLICIES AND PROCEDURES ENGINEERING SERVICES DEPARTMENT

2 VOLTA RIVER AUTHORITY System Development Engineering Services Department

3 ENGINEERING SERVICES DEPARTMENT POLICIES INTRODUCTION A. IDENTIFICATION DATA Policy No.: ESD/003 Document ID: SYSTEM DEVELOPMENT SECTION i. Subject: System Development ii. Subject Area: Generation Expansion Projects and Demand Side Management iii. Functional Responsibility: Director, Engineering/Manager, System Development iv. Approval Date: [Date of Policy is Approved] B. BROAD DIRECTIVE PRINCIPLES i. POLICY STATEMENT: To ensure effective implementation of Generation Expansion projects, identifying and initiating the implementation of renewable energy resource development projects as well as the development and implementation of Demand Side Management programmes to ensure efficient utilization of the electric energy resource. ii. POLICY RATIONALE/OBJECTIVES: Carry out studies for the development of renewable energy resources. Solicit for funds for the implementation of projects and develop the project to be implemented. Identify appropriate investment vehicle to support the development of energy infrastructure projects. Solicit for funds for the implementation of projects Prepare Request for Proposal documents for project for which the would-be contractor will be required to submit a financial proposal for funding project implementation. Pursue Demand Side Management programmes in collaboration with other institutions to reduce generation expansion requirements. Implement renewable energy resource development projects. Monitor and analyze developments and trends in the sub-regional power markets.

4 iii. SCOPE OF APPLICATION: Generation Expansion Projects and Demand Side Management IMPLEMENTATION PROCEDURES: ESD/003/001 Conduct project investment appraisals Conduct load management studies C. IMPLEMENTATION, ENFORCEMENT, AND MONITORING RESPONSIBILITY: Director, ESD/Manager, System Development D. SPECIFIC CIRCUMSTANCES: Force majeure, cashflow difficulty, Lack of technical know- how and trained personnel E. Definitions:N/A Related policies/references: [Information about related policy guidelines. Attach forms samples if applicable to the policy. If needed additional background discussion should be provided] ENGINEERING DEPARTMENT POLICIES Owner Engineering Services Department Approved By: Signature : Effective Date: Origination Date: Revision Date: Version No:

5 ENGINEERING SERVICES DEPARTMENT PROCEDURES INTRODUCTION F. IDENTIFICATION DATA Procedure No.: ESD/003/001 Document ID: System Development i. Subject: System Development ii. Subject Area: Generation Expansion Projects and Demand Side Management iii. Functional Responsibility: Director, Engineering/Manager, System Development iv. Approval Date: [Date of Procedure is Approved] G. OVERVIEW/PROCEDURE DESCRIPTION i. PROCEDURE OBJECTIVES: To ensure effective project investment appraisals and load management studies H. PROCEDURE DETAILS: 1. Project Investment Appraisals Perform project financial analysis Perform project economic analysis Perform project risk analysis

6 Perform project distributive analysis 2. Load Management Studies Perform Direct Load Control studies Perform interruptible Load Control studies Perform Time of Use (TOU) tariff studies Perform Electrical Energy management through consumers studies Perform Load Shape Change Studies Perform Power Factor Correction studies Load Character assessment Load Control Impact assessment I. IMPLEMENTATION, ENFORCEMENT AND MONITORING RESPONSIBILITY: Director, Engineering/Manager, System Development J. SPECIFIC CIRCUMSTANCES: Force majeure, cashflow difficulty, Lack of technical know- how and trained personnel K. Definitions: N/A Related policies/references: [Information about related policies or procedures, guidelines. Attach forms samples if applicable to the procedure. If needed additional background discussion should be provided] [ENGINEERING DEPARTMENT] PROCEDURES Owner Approved By: Signature : Effective Date: Origination Date: Revision Date: Version No: