Develop and implement a Balancing Market for SAPP

COUNTRY: Southern African Power Pool region

NAME OF PROJECT: Southern African Power Pool Program for Accelerating Transformational Energy

Projects Grant No.: H9890

Assignment Title: Development of a Balancing Market Trading Platform for the Southern African Power Pool

The World Bank is preparing a Program with the Southern Africa Power Pool (SAPP) to help accelerate preparation of priority regional power generation and transmission projects in the region of the Southern African Power Pool. The Program Development Objective is “to facilitate the preparation of priority regional energy projects in the Southern African Power Pool region”.

Objectives of consultancy assignment

Currently SAPP does not provide for a competitive trading platform for two hours before delivery hour starts and during delivery hour. The Intra Day Market (IDM), which is the current existing competitive trading platform operating closest to delivery hour, closes two hours before delivery hour starts.

At any given time, maintaining power system stability requires a permanent balance between total power generation and total demand (Generation G = Consumption C). Power generators are synchronous machines which can only be operated together, within an interconnected grid, at a fixed common frequency (frequency = a set-point of 50 Hz for the SAPP). When there is an imbalance between generation and consumption, the system frequency varies. The system frequency is a direct indicator of the active power balance. Insufficient, bad or no balancing power management put system stability at risk and can lead to equipment failures, load shedding and even system black-out. The maintenance of frequency stability is one of the preconditions of the system safety and energy supply security.

The SAPP in 2018 agreed to develop the Balancing Market (BM) trading platform in addition to the markets already in existence. The objective of a BM development for SAPP is to look at all options of available supply and demand and utilise them in a competitive manner in order to ensure that the system is in balance all the time. SAPP is therefore seeking a consultant to explore all options of the BM and in consultation with SAPP, recommend one that best suits SAPP current and prospective power markets. Pros and cons of the different identified options shall be identified.

The key output of the consultancy assignment is the development of a working BM including: 1) a market structure design, 2) the hardware and software for a trading system, 3) identification of operational issues, 4) a method for physical and financial settlement, 5) operational rules, and 6) any other relevant activity that ensures the establishment of a working BM approved and mandated by SAPP.

Required Qualifications and Experience

The Consultant shall be a qualified, internationally recognized firm with at least 10 years of international experience in information technology development, power systems and operations including market development and operations. The firm shall have at least 5 years’ experience with regional trading systems and should demonstrate similar assignments executed/under execution by the firm. The firm should be able to field multinational teams, covering at a minimum, areas such as: Senior Electricity Market Expert – Team Leader; Computer Programming Expert and Power Transmission and Trade Expert.

The SAPP now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services.

The shortlisting criteria are:

· Years in business with relevant power sector consulting services experience

· Availability of qualified and experienced staff such as Senior Electricity Market Expert – Team Leader; Computer Programming Expert and Power Transmission and Trade Expert

· Evidence of having executed relevant regional projects in terms of similar size / volume and complexity the areas of balancing market trading platforms

Consultants may associate with other firms in the form of a joint venture or a sub-consultancy to enhance their qualifications.

A Consultant will be selected in accordance with the QCBS method set out in the Consultant Guidelines.

Further information can be obtained at the address below during office hours from Monday to Friday [ 09:00 to 16:00 hours ].

Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by e-mail) by 18 April, 2019 at 15:00 hours Central African time and mention "Expression of Interest for Consultancy Services for the Development of a Balancing Market Trading Platform for the Southern African Power Pool“

Address and Contact:

Southern African Power Pool

Attention: Thembekani Luthuli, SAPP-PAU Procurement Specialist

222 Morningside Close

Morningside

Johannesburg

South Africa

Tel: +27 10 446 9600

Email Address: [email protected]