Energy Security Project is USAID project implemented by Tetra Tech ES, Inc. Energy Security Project works with Ukrainian government, private sector, and civil society leaders to improve Ukraine’s energy security, and transform Ukraine’s energy sector into a modern, market-oriented, EU-integrated, engine of growth. Energy Security Project’s goals include inter alia promoting Competitive Energy Markets, facilitating European Integration, strengthening Energy Independence, facilitating Renewable Energy Development, supporting Empowered Sector Regulation, increasing Public Trust and ensuring Environmental and Social Responsibility.
Ministry of Communities and Territories Development is a central executive body, the activities of which are directed and coordinated by the Cabinet of Ministers of Ukraine. The Ministry of Regional Development is the main body in the system of central executive bodies that ensures the formation and implementation of state regional policy, state policy in the field of local selfgovernment development, territorial organization of government and administrative-territorial organization, state housing policy and policy in the field of human settlements. in the field of housing and communal services, state policy in the field of household waste management, state policy in the field of construction, urban planning, spatial planning and architecture, state policy in the field of technical regulation in construction, and provides state policy in the field of architectural and construction control and supervision, in the field of control of housing and communal services and in the field of ensuring energy efficiency of buildings.
In the area of district heating, the Ministry is mandated to ensuring formation and implementation of the state policy in the field of housing and communal services, to promote ensuring quality utility services by service providers; to submitting to the Cabinet of Ministers of Ukraine proposals on Procedures for the formation of utility tariffs set by local governments; Procedure for establishing standards (norms) of consumption of public utilities.
Energy Security Project is providing technical assistance to Ministry of Communities and Territories Development (MinRegion) under several directions of assistance, including technical assistance to support development of legal framework to provide incentives for transitioning to less energy intensive sources, for e.g., assessing opportunities to revise temperature requirements for heat carrier in DH systems and eventually transit to quantity regulation.
Heat carrier temperature norms are one of essential parameters of the district heating (DH) system. There are at least three major temperature areas to consider when designing temperature graphics and assessing impacts of temperature parameters upon efficiency of the entire system: supply carrier temperature (min, max), return carrier temperature (min, max) and the plot temperature graphics (difference between the two at changing outdoor temperature).
Normally, (i) the smaller difference (delta) between the supply-return temperatures, at reduced supply temperature; (ii) the lower supply temperature; (iii) the lower return temperature – the better economics of DH system is achievable. Lower temperatures of heat carrier provide opportunities to reduce costs in several ways, including lower losses during transportation of heat carrier; reducing the temperature plot is economically justified, since normally the savings on reduced temperature exceed the expenses of ensuring more intensive heat carrier circulation.
Although lowering temperatures is associated with higher costs to ensuring circulation, however, it is also associated with better possibilities to integrate low-energy sources (for e.g., recovered heavy, renewable heat, etc.), which serve generation cost cuts and fossil fuels usage reduction.
Lower temperature parameters facilitate transit from quality regulation in DH to quantity regulation of DH, which, on its turn subsequently encourages demand side management implementation.
Specifically, the subcontractor is requested to achieve the following objective:
- • To assess if current regulatory framework regarding temperature norms for heat carrier in DH systems is cost efficient and facilitates integration of renewable and alternative energy sources into generation fleet and transition to quantity regulation (control).
- • To propose a regulatory framework solution on temperature norms for heat carrier in DH systems, and other related norms if applicable, which (framework solution) incentivizes cost efficiency and facilitates integration of renewable and alternative energy sources into generation fleet and transition to quantity regulation (control).
- • To support establishing the framework proposed.
Scope of Work
To achieve the objective, the subcontractor shall implement the following scope of work:
3.1. Analyze international practice, for temperature regimes in DH systems. The subcontractor shall make analysis of international practice of temperature regimes applied in DH systems. The analysis of international practice shall include cases from at least 6 different countries of EU/EEA (representing different regions of Europe). At least one Scandinavian country shall be analyzed.
Particular interest shall be dedicated to countries with historically similar to Ukraine starting point of DH systems transformation; analysis of such countries shall make at least 3 cases (CEE). Subject of analysis shall be: supply temperature, return temperature, plot temperature graphics; legalregulatory environment to determine the temperature setting. In case of CEE cases, the subcontractor will provide evidences on the period of transition from high to low temperatures: how initiative arised, what was the path of implementation, including legal-regulatory decisions taken and technical adjustments applied, if there was such a case; what savings have been achieved in terms of losses, fuels, costs, etc. at implementation of amended temperature setting; what additional dedicated investment was needed, if any, to implement the initiative; other relevant information, evidences and demonstrations as necessary. In addition, the subcontractor is expected to provide at least 3 cases analyses on a DH system basis, demonstrating practical implementation of the transformation at municipal/local level (cases shall come from different countries). The subcontractor shall provide evidences if lower temperature setting facilitated integration of renewable and alternative energy sources into generation fleet. The subcontractor shall provide evidences if lower temperature setting facilitated transition from quality to quantity regulation (control). Note: the international practice analysis shall not be performed for Ultra Low Temperature District Heating cases. Analysis and evidences provided by subcontractor shall be sufficient to confidently conclude (i) if lowering temperature regimes leads to efficiency increase in DH systems, and (ii) if the international European practice support this conclusion and demonstrates its applicability.
3.2. Analyze Ukrainian practice, for temperature regimes in DH systems. The subcontractor shall provide systemic analysis of current Ukrainian legal-regulatory framework for temperature regulation in DH systems and roles of institutions (in legal basis and in practice, including DH entities) to govern the temperature regimes. The subcontractor shall provide historical evidences and practical cases of implementation of the temperature regimes in Ukraine. The subcontractor is expected to provide at least 3 deep-dive case analysis for the largest DH systems in Ukraine and least 3 deep-dive case analysis for medium size DH systems in Ukraine. The analysis shall include actual temperature regimes implemented, historically, at least 5 years from now (preferably more); economic, financial and other effects (if any) of implementation the temperature regimes; assessment of opportunity costs (if any). The subconttactor shall provide necessary evidences and arguments to conclude if current temperature setting in Ukrainian DH systems is optimal to ensure efficiency and integration of renewable and alternative sources into generation fleet, and if the current framework facilitates transition to quantity regulation (control). If the current regime is not optimal, the subcontractor shall develop recommendations on improvement of temperature regime for Ukrainian DH, and provide sufficient arguments (including but not limited to technical, economic arguments) to support the recommendations. The subcontractor specifically is requested, in addition to the listed requests, to make estimates on potential savings whereas heat carrier temperature regimes are amended; it is expected to have projections for the entire Ukrainian DH sector as well as detailed estimates for at least 3 concrete DH systems (at least one of the systems shall be a large system). Subcontractor shall provide sensitivity analysis for his estimates. Generally, when developing recommendations, subcontractor shall take into due consideration local specifics of DH systems.
3.3. Draft legal-regulatory framework. The subcontractor will draft relevant legal-regulatory framework proposal enabling and incentivizing entities to reduce heat carrier temperature and improve temperature regimes in such a way, that efficiency of the DH system is increased, integration of renewable and alternative sources into generation fleet is enabled, and transition to quantity regulation is facilitated. Developing the legal-regulatory proposal, the subcontractor shall ensure that no cost for consumers are envisaged, and on the contrary, consumers to receive benefits in the form of reduced bills for heating and/or increased quality of heating service. The subcontractor will support passage of the regulation(s) until adoption. The passage support will include actions and products needed by the adopting institution, for eg., drafting explanatory notes, organizing and participating in round tables and discussions, acting as a member of working group established by MinRegion, if any, developing presentations and other support materials. The subcontractor, in collaboration with ESP team, will organize and conduct a training session for DH entities, local administrations and MinRegion to apply and implement developed regulation(s).
The subcontractor will engage in ESP activities to support MinRegion. The subcontractor will be requested to act in close cooperation with other subcontractors of the ESP, if and when applicable.
The subcontractor will report to ESP District Heating Sector Lead.
Deliverables and Due Dates
The successful offeror shall deliver to Tetra Tech the following, in accordance with the schedule set forth below.
Deliverable 1. Training session on legal-regulatory framework for Improvement of Heat Carrier Temperature Regimes
The subcontractor will organize and conduct training session for DH entities, local governments and MinRegion to apply and implement the framework for Improvement of Heat Carrier Temperature Regimes.
Deliverable 2. Draft Report on Best International and Current Ukrainian practice, for temperature regimes in DH systems.
The Report shall follow the structure and requirements under SOW 3.1.and SOW 3.2.
Deliverable 3. Final Report on Best International and Current Ukrainian practice, for temperature regimes in DH systems
The Report shall follow the structure and requirements under SOW 3.1. and SOW 3.2.
Deliverable 4. Presenting the findings of the Report to ESP team
The subcontractor will make an internal presentation of the report to the ESP team. The subcontractor may be requested to include into the report comments received during the internal presentation to ESP team, if any.
Deliverable 5. Legal regulatory framework developed on Improvement of Heat Carrier
The Deliverable shall follow the requirements under SOW 3.3. The subcontractor will develop draft law(s) and / or draft resolution(s), which will enable improve heat carrier temperature regimes in DH systems.
Support to passage the draft framework on Improvement of Heat Carrier Temperature Regimes
The subcontractor will provide passage support to the draft legal-regulatory framework developed until adoption by MinRegion / COM. The passage support will include drafting explanatory notes, organizing and participating in round tables and discussions, developing presentations and other support materials, activities, as needed.
All deliverables are provided in electronic format unless the subcontractor is specifically requested to provide a hard copy. Deliverables are to be developed in Ukrainian, however each report must have extensive English summary. Here, the due dates are indicative, and the final dates will be developed in close coordination with the Ministry of Communities and Territories Development.
SUBMISSION OF PROPOSALS
- All proposals are due on January 22, 2021 by no later than 14:00 local time in Ukraine. Proposals must be submitted via e-mail at the address [email protected] in the following formats: Adobe Acrobat and Microsoft Word and/or Excel.
- To help us track our procurement effort, please indicate in your email where (vacanciesinukraine.com) you saw this tender/procurement notice.
All proposals must fully respond to the Technical Specifications enclosed as Attachment A and must include quotes in the format provided in the Attachment B – Table 1 – Detailed Budget. Proposals received after the above-stated due date and time will not be considered for this procurement.
QUESTIONS AND CLARIFICATIONS
All questions or clarifications regarding this RFP must be in writing and submitted, in English, to [email protected] on January 07, 2021 no later than 14:00 local time in Ukraine.
Questions and requests for clarification, and the responses thereto, will be circulated to all RFP recipients.
Only written answers from ESP Procurement Office of Tetra Tech will be considered official and carry weight in the RFP process and subsequent evaluation. Any answers received outside the official channel, whether received verbally or in writing, from employees or representatives of Tetra Tech, or any other party, will not be considered official responses regarding this RFP.