Terms of reference INDIVIDUAL CONSULTANT PROCUREMENT NOTICE

Transcription

1 Terms of reference INDIVIDUAL CONSULTANT PROCUREMENT NOTICE Position: RE/EE Investment Specialist Closing date: 25 May 2014 GENERAL INFORMATION Title: RE/EE Investment Specialist Project Name : Market Transformation through Design and Implementation of Appropriate Mitigation Actions in the Energy Sector (Market Transformation) Reports to: Programme manager for Sustainable Energy, UNDP. Duty Station: Output based Expected Places of Travel (if applicable): Selected pilot provinces Duration of Assignment: about 110 days within June Nov 2014 REQUIRED DOCUMENT FROM HIRING UNIT TERMS OF REFERENCE (4) CONFIRMATION OF CATEGORY OF LOCAL CONSULTANT, please select : (1) Junior Consultant (2) Support Consultant (3) Support Specialist (4) Senior Specialist (5) Expert/ Advisor APPROVED e requisition REQUIRED DOCUMENTATION FROM CONSULTANT CV Copy of education certificate Completed financial proposal Completed tchnical proposal Need for presence of IC consultant in office: partial (for discussion and consultation) intermittent (explain) full time/office based (needs justification from the Requesting Unit) Provision of Support Services: Office space: Yes No Equipment (laptop etc): Yes No Secretarial Services Yes No If yes has been checked, indicate here who will be responsible for providing the support services: < Enter name > Signature of the Budget Owner: Verania Andria

2 I. BACKGROUND The objective of Market Transformation through Design and Implementation of Appropriate Mitigation Actions in the Energy Sector project is to support the design and implementation of appropriate climate change mitigation actions in the energy generation and energy end use sectors. The government implementing partner of Market Transformation project is the Directorate of Bioenergy of the Ministry of Energy and Mineral Resources (MEMR). The situation analysis identified several main gaps related to energy sector as part of Indonesia s effort in transforming its economy towards green economy. Despite having abundant renewable energy resources, Indonesia s energy supply mix is dominated by fossil fuels. Indonesia s primary energy is dominated by crude oil (38%), followed by biomass (20%), coal and natural gas (19% each), hydropower (3%) and geothermal (1%) 1. The energy sector in Indonesia emits 315 million tonnes CO 2 equivalent per year, second only to the forestry sector (1,232 million tonnes CO 2 equivalent) (SNC, 2012). The Government of Indonesia (GoI) has enacted a number of sustainable energy policies, including Presidential Regulation No.5/2006 on National Energy Policy, which sets a target by 2025 of a 17% contribution from renewable energy (RE) in the national primary energy mix and a 32% reduction in final energy intensity through various energy efficiency and energy conservation measures 2. Other notable regulations are Presidential Decree No. 61/2011 establishing a National Action Plan to reduce greenhouse gas emissions (RAN GRK), the Local Action Plan to reduce GHG emissions (RAD GRK, 2012), and Presidential Regulation No.71/2011 on establishing a national GHG Inventory all of which reflect the Government s voluntary commitment to reduce GHG emissions by 26% by 2020 through national efforts or by 41% with international assistance. Both renewable energy (RE) and energy efficiency (EE) have been prioritized to achieve emission reduction targets. The energy and transportation sectors are targeted to reduce 38 million tonnes of CO 2 by 2020 (26% target emission reduction). In order to attract investments for RE and EE projects, Ministerial Regulation No. 04/2012 was issued to regulate a feed in tariff for RE installations smaller than 10 MW and Presidential Instruction No. 13/2011 on water and energy saving was issued to achieve a 20% reduction of energy consumption in all Government institutions. The Indonesia National Council for Climate Change (DNPI) announced the Nusantara Carbon Scheme (NCS) in 2013, which opens up the possibility for a sectoral crediting mechanism through issuance of Nusantara Carbon Unit (NCUs). While useful and ambitious, all of these policies have experienced considerable barriers in their implementation. Thus, the problems that will be addressed through the Market Transformation project are: 1. Lack of capacity in identification and prioritisation of appropriate and cost effective mitigation actions at the national and sub national levels in the energy generation and energy end use sectors. The selection of mitigation actions is not undertaken in an integrated and systematic manner based on sound planning thus resulting in a fragmented and uncoordinated approach. 2. Limited market diffusion of renewable energy and energy efficiency technologies. Lack of a favourable market environment, inadequacy of technical manpower to conduct feasibility studies, poor operational and maintenance capacity, and a lack of involvement of and benefits accruing to local communities. These problems have resulted in limited investment in RE and EE. Various funding initiatives for RE and EE projects are under implementation by the Government, but very few support energy efficiency projects or energy service companies (ESCOs). Similarly, for renewable energy projects, the existing funding mechanisms mostly finance only proven and medium to large size RE technologies such as mini hydro and biomass power plants using palm oil waste, ideally with installed 1 Handbook of Energy & Economic Statistics of Indonesia MEMR, Data sourced from

3 capacities above 2 MW, investment costs above US$ 5 million and IRRs of at least 16%. Smaller and offgrid opportunities are largely overlooked. The number of internal bank assessors for RE and EE investments is very limited. The feed in tariff for RE is still considered unattractive by investors while investment in EE can have long pay back periods due to the Government s policy on energy subsidies. There is low interest in, and even lower participation in, carbon trading mechanisms. The permit system for energy generation investments is inefficient and costly; there is unclear regulation of, and role sharing between, Government and private sector actors in public private partnership (PPP) mechanisms. 3. There is neither an operational national registry mechanism for mitigation actions nor MRV guidelines and standard methodologies for compliance assessment of programs and projects with the national emission reduction targets. The limited understanding of MRV systems and the capacity to implement them are a major barrier for effective implementation of the RAN GRK and RAD GRK. Future energy policy making and forward looking development planning in the areas of energy and environment half a decade from now (2020) will not be effective, useful or meaningful if data/information from activities carried out under the RAN GRK and RAD GRK are not properly managed or MRV d, and if the enabling environment for investment is not conducive. Not all of the necessary elements for a systematic mitigation approach are currently in place; in the absence of GEF support, the planning, funding and implementation of the various climate change mitigation initiatives (RE and EE) will be fragmented, unlikely to result in synergies and will have only limited impacts relating to Indonesia s energy based emission reduction targets for 2020 and beyond. This is the expected baseline scenario in the absence of the Market Transformation project. The Market Transformation project is aimed to tackle the problems mentioned above, particularly through implementation of following component activities: Component 1: Climate change mitigation options for the energy generation and energy end use sectors aimed to result in design of prioritized appropriate mitigation actions in the energy generation and energy end use sectors. Component 2: Market transformation through implementation of appropriate mitigation actions in the energy generation and energy end use sectors aimed to enhance sustainable market diffusion of renewable energy and energy efficiency technologies. Component 3: MRV system and national registry for mitigation actions in the energy generation and energy end use sectors, aimed to strengthen mechanism that allow accurate measurement and accounting of actual GHG emission reductions from mitigation actions in the energy generation and energy end use sectors. The Market Transformation project implementation will cover four indicative provinces in Sumatera, NTT/NTB, Kalimantan and Sulawesi. Selection will be decided upon discussion with the MEMR and screening process based on (a) indicative potential renewable energy based power generation options in those provinces include mini hydro, biomass, solar PV, wind power and landfill gas; (b) low electrification ratio; (c) indicative mitigation actions listed in the provincial RAD GRK; and, (d) presence of private sector interests and related investments. Based on the data gathering, analysis and stakeholder consultation process, the objective of this assignment is to deliver: (1) Project Document (ProDoc) that meets GEF quality standard; (2) GEF CEO Endorsement Request (CER) following GEF template; and (3) UNDP Environmental and Social Screening (ESS) Checklist of the project implementation plan. For that purpose, a team of six national consultants will be recruited to form a Project Development Team. The team will consist of: (1) RE/EE Project Document and Management Specialist (as Team Leader) (2) RE/EE Technical Specialist (3) RE/EE Policy and Institutional Specialist (4) RE/EE Investment Specialist (5) Two RE/EE Support Specialists. Under coordination of the Team Leader, the team will work closely and report to the UNDP and Director of Bioenergy of the Ministry of Energy as Implementing Partner. Expected by end of November 2014 the Project

4 Document of Market Transformation project, CER and ESS are completed and ready for technical review by UNDP GEF Technical Advisor for submission to GEF Secretariat. II. SCOPE OF WORK, RESPONSIBILITIES AND DESCRIPTION OF THE PROPOSED ANALYTICAL WORK The scope of work of the Project Development Team is as follow: 1. In the context to support the design and sustainable implementation of appropriate climate change mitigation actions in the energy generation (RE based energy generation) and energy end use (EE) sectors, the Project Development Team shall conduct Logical Framework Analysis (LFA) and selection of provincial pilot sites with the project stakeholders to result in: agreed pilot provinces, logical framework or project planning matrix defining the project goal, objective, outcomes and outputs, with the relevant indicators (with baseline & target values), means of verification and critical assumptions; and finalised implementation plan along with institutional structure & manpower plan for project implementation, monitoring and knowledge dissemination 2. Conduct baseline studies and gaps identification in selected pilot provinces / national level following the result from LFA process, through conducting following activities but not limited to (a) at the provincial and national level to review institutional capacity (for planning and implementation of RE/EE on grid and off grid) and to review existing policy, regulation, incentive, permit and MRV/Registry system for RE/EE on grid and off grid investment; (b) conducting analysis on greenhouse gases inventory and indicative abatement cost to establish baseline information for RE on grid and off grid and energy end use sector (EE); (c) technical assessment for the most appropriate mitigation actions; (d) identification of existing and potential RE/EE developers/investors and smallmedium enterprises potentially in the area; and (e) review of the existing and preferable financing mechanism for RE/EE investment (on grid/off grid, Energy Service Company) and small medium enterprises utilizing RE/EE technology. 3. Propose alternative scenario and detail design of the project activities to fill in the identified gaps, and which are incremental compared to baseline activities. 4. Conduct stakeholder consultation workshops to verify, receive feedback and commitment on the alternative scenarios and detail activities. 5. Establishment of institutional framework for project partners/co financiers in the project implementation and to ensure close coordination with co financed baseline activities. Expected outputs: Finalized required agreements for the project implementation arrangements including co financed activities Established well defined communication mechanism among key stakeholders / partners Obtained letter of commitment for Co financing from partners 6. Finalization and Submission of the Project Document, GEF CEO Endorsement Request and Environmental and Social Safeguard (ESS) form. The abovementioned assignments will be achieved through contribution of the following National Technical Consultants (NTCs) under coordination of the Team Leader and guidance from UNDP and the Director for Bioenergy, MEMR. RE/EE Project Document Development and Management Specialist (as Team Leader) RE/EE Technical Specialist RE/EE Policy and Institutional Specialist RE/EE Investment Specialist RE/EE Support Specialists. A. RE/EE Investment Specialist In close coordination with other Project Development Team members and under guidance of the Team leader, the RE/EE Investment specialist is expected to conduct the following scope of work, but not limited to: 1. Based on the stakeholder consultation, to develop logical framework or project planning matrix for RE/EE Investment Component activities defining the project goal, objective, outcomes and outputs, with the relevant indicators (with baseline & target values), means of verification and critical assumptions. 2. At national and provincial level, review and document the existing and preferable financing

5 mechanism for RE/EE investment (on grid/off grid, Energy Service Company) and small medium enterprises utilizing RE/EE technology. 3. Identify existing and potential RE/EE developers/investors and small medium enterprises potentially applying EE/generated electricity in the area; 4. Design feasible business model for potential RE/EE investment in the selected province including Public Private Partnership scheme; 5. Design project activities on RE/EE Investment component activities that will address the barriers for RE/EE investment (baseline, incremental and combination baseline incremental) taking note of the budget, the responsible entity and the schedule; 6. Ensure co financing letters from the private sectors/state owned enterprises those agreed to participate in project implementation in relation to pursue RE/EE investments. 7. Provision of expert advice of RE/EE investment that may be required by Team Leader. III. REQUIREMENTS FOR EXPERIENCE AND QUALIFICATIONS Bachelor degree in engineering, management, finance, business, or environmental science. A minimum of six years experiences in climate change mitigation projects. Experience in development of project concept in renewable energy or energy efficiency, GEF project is preferable. Wide working experience in the field of RE/EE. IV. EXPECTED RESULTS Expected Deliverables Indicative due date Payment 1. Submission and acceptance by UNDP Report on Logical framework of the project on RE/EE Investment Component Activities 20 June % 2. Submission and acceptance by UNDP Report on baseline study and alternative project activities on RE/EE Investment Component and co financing letters from private sector 3. Submission and acceptance by UNDP Final Project Document and GEF CEO Endorsement Request including response to the feedback from the GEF reviewers. 20 September % 30 November % ANNEX 1 INDIVIDUAL CONSULTANT GENERAL TERMS AND CONDITIONS [to be provided by procuring unit with the individual consultant procurement notice]