The power market in Kenya is undergoing significant reforms as espoused in the Energy Act of 2019. The level of intermittent sources of energy is expected to increase rapidly in the medium and long term.
This is expected to increase the need for ancillary services including frequency control, voltage control and black-start capability to maintain grid stability, reliability, security and quality of the supplied electricity.
Deadline for receipt of expressions of interest is Wednesday, 27 January 2021 at 10:00 hours, EAT.
Kenya Electricity Generating Company PLC (KenGen) hereby seeks to procure consultancy services for The Study on the Impact of Provision of Ancillary Services on KenGen’s power generation plants from suitably qualified firms to study the impact of providing ancillary services on KenGen’ s power generation plants and in preparation for the anticipated development of ancillary services market in Kenya and the larger East African power market.
The short-listed firms will be invited to participate in the Request for Proposal (RFP) process thereafter. The qualifying firm/consultant or consortium will be expected to undertake the assignment within a period of six calendar months.
Terms of reference and scope of works
The consultancy services shall include but not limited to the following:
a) Study how generation machines have responded to frequency excursions and provision of other ancillary services over the years and the impact on these machines.
b) Study the financial impact on the current Power Purchase Agreements (PPA).
c) Simulate future scenarios of ancillary service needs and their impact based on power sector projects’ pipeline and plans especially their technical and financial impact on integration of more variable renewable energy (VRE) in the grid.
d) Advice on the additional investment costs required to offer the ancillary services.
e) Advice on the additional maintenance costs as well as the opportunity cost of providing these ancillary services.
f) Study the possibility of increasing the capacity, increasing operating range of existing plants and other mitigation measures and their associated costs.
g) Benchmark methodologies used to price ancillary services in other similar regulatory jurisdictions and power markets.
h) Provide a suitable pricing methodology and formula for provision of ancillary services within the existing generating power plants and in cases where there is a dedicated facility that provides ancillary services.
i) Advise on the relevant contractual framework for provision of ancillary services.
j) Train staff on the findings of the study, pricing formulas and other best practices of managing ancillary services and advising KenGen on simulation tools that can be used for future studies by KenGen for ancillary service requirements and modelling.
k) Provide support in the implementation of the recommendations of the final report.
The expression of interest must be accompanied by the consultant’s qualifications, professional capabilities, and details of past experience related to the requested consultancy services. Such information may include brochures, description of similar assignments, experience in similar conditions, and availability of appropriate skills among staff with their most recent profiles showing their experience, qualifications, capabilities, referees, and details of past experience especially in their areas of expertise.
Interested consultants must provide information indicating that they are qualified to successfully undertake the study. Shortlisting of consultants will be based on the following:
Eligible firms must have the following:
i) At least 15 years’ experience in power sector consultancy.
ii) Demonstrate successful performance in carrying out at least three similar scope of work studies in the past 10 years. The consultant shall provide at least three references for consultancies carried on ancillary services.
iii) It is anticipated that consultants responding to this EOI will be an individual firm or association. In case of an association, the members shall submit a declaration confirming their association (joint venture or consortium) with indication of the lead partner of such an association.
iv) Foreign consultant firms should incorporate local consultants in their consultant teams for capacity building and to meet the statutory local content requirement.
v) Demonstrate a strong & stable financial status by positive cash flows, net worth and profitability for the immediate last three years.
B. In addition to the firm’s experience, a list of proposed professional staff and disciplines expected to take part in the study, including but not limited to:
i) Team leader shall be an engineer with at least 15 years’ experience, knowledge and understanding in power plant operations, power system planning and its commercial aspects. Demonstrate ability in management of similar consultancy assignments.
ii) A power system engineer with at least 15 years relevant working experience in electricity power grid modelling and grid/transmission system operations.
iii) A mechanical engineer who must have a minimum of 15 years in operating power plants, preferably geothermal, hydro and thermal power plants.
iv) An energy economist or financial analyst with a minimum of 10 years’ experience in power systems planning and pricing.
a) Documents detailing that the party or parties fulfils the minimum requirements listed above.
b) Certificate of incorporation or equivalent (and any certificate of change of name), certified by an authorised representative of the bidder or (as the case may be) the consortium member.
c) Certified copies of memorandum/articles of association.
d) Financial statements for the last three years including tax registration and tax compliance certificates or equivalent documents applicable in the bidder’s country of origin. (For consortium arrangements, each member must meet the requirements).
e) List of consultancy services on similar studies, including a brief description of the study (scale and scope) and the status of the projects.
f) A list of projects that the proposed team members including the team leader have experience relevant to this study indicating the scope, responsibilities and duration of engagement for each team member. Please attach their curriculum vitae as well.
g) Where the applicant is a consortium, a list of the proposed members of the consortium and the proposed leader of the consortium and the roles of each member.
Interested individuals may request clarification on this qualification for up to seven days before the submission date through telephone +254 2 3202000, fax +254 2 248848 or emails [email protected] CC [email protected]; [email protected] addressed to the Supply Chain Director,
Interested firms must submit the prequalification documents in English must be received in a plain sealed envelope marked on the outer envelope “CONFIDENTIAL – KGN-REG-08-2020 – EXPRESSION OF INTEREST (EOI) FOR THE PROCUREMENT OF CONSULTANCY SERVICES FOR THE STUDY ON THE IMPACT OF PROVISION OF ANCILLARY SERVICES ON KENGEN’S POWER GENERATION PLANTS” on or before 27 January 2021 at 1000HRS local time.