81272859-Strategic Consultation on the Future Direction of Eskom Generation

Kurze Beschreibung

In 2021, at the State of the Nation Address (SONA), the President of South Africa has reconfirmed that the vertically integrated state-owned utility Eskom will be separated into three state-owned entities: generation, transmission and distribution. This will lay the foundation for an efficient, modern and competitive energy system that will enable greater private sector participation and investment in generation capacity to address South Africa's ongoing power crisis.
‘The Roadmap for Eskom in a Reformed Electricity Supply Industry’, published by the Department of Public Enterprises, outlines a structural reform, where an independent transmission system and market operator (ITSMO) can procure electricity from a diversified, competitive generation sector on economic grounds and at least cost.
However, a detailed implementation and transition strategy, that also looks at future mandates, roles and business models as well as risks and other future opportunities for the respective Eskom divisions is still to be finalised. It is the responsibility of the divisions to define their position and revenue streams in the future South African Electricity Sector.
Against this backgorund, the South African-German Energy Program (SAGEN), funded by the German government and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Department of Mineral Resources and Energy (DMRE), Eskom and the South African Local Government Association (SALGA), was approached by Eskom (Generation) to
— provide support in analysing the implications of the planned power sector reform as well as the introduction of competitive markets for electricity/other system or ancillary services on Eskom Generation's current business model;
— provide support in identifying the skills required in the company in the future;
— assist in developing sound adaptation and transition strategies for the future, including a more renewables-based generation portfolio and potential business opportunities arising from an emerging green hydrogen economy in South Africa and globally.
GIZ-SAGEN would like to respond to this request and is looking for expert consulting services to:
1) Develop background material on international best practices and experiences for relevant adaptation and transition strategies of formerly fossil fuel dominant generation companies to renewable energy generation, with particular attention to opportunities arising from a developing green hydrogen economy in South Africa and globally (Work Package 1);
2) Conduct three two-day strategy seminars with 10-20 Eskom Generation representatives on the content of the background material with the objective of developing ideas for adaptation and transition strategies for Eskom (Generation), including strategies for participation in renewable energy generation and in an emerging green hydrogen economy in South Africa and globally (Work Package 2);
3) Summarise the results of the strategy seminars in a final report that also provides recommendations on suitable adaptation and transition strategies that can be further developed in a Roadmap under Work Package 4 (Work Package 3);
4) Develop a Roadmap on the future strategic direction for Eskom Generation based on the results and recommendation in the final report (Work Package 4).

Beschreibung der Beschaffung

The overall objective of the assignment is to support the generation division of Eskom ahead of its legal separation in the development of sound adaptation and transition strategies in the context of an ongoing power sector reform, including strategies to increase participation in renewable energy generation, and with particular consideration of future opportunities arising from an emerging green hydrogen economy in South Africa and globally.
GIZ-SAGEN is looking for expert consulting for the implementation of services in 4 work packages:
In Work Package 1 the firm of consultants is asked to develop background material on the following topics, based on international experience and best practices:
— adaptation and transition strategies of (formerly) fossil fuel dominated generation companies towards a (more) renewable energy-based generation portfolio;
— the fundamentals and functioning of relevant competitive energy markets, with a special focus on the (dominant) generator perspective and the business models and revenue streams available to them in this context;
— potential business opportunities for renewable energy producers presented by the green hydrogen economy that is currently emerging globally and in South Africa.
In Work package 2 the firm of consultants shall develop and implement a concept for and hold three two-day strategy seminars with 10-20 representatives of Eskom (Generation).
The objective of the strategy seminars is to present and discuss with participants the background material prepared by the firm of consultants as part of Work package 1, and to develop together with the Eskom (Generation) representatives initial ideas for suitable adaptation and transition strategies for Eskom (Generation) in the context of the ongoing power sector reform, including strategies to increase participation in renewable energy generation and considering future opportunities arising from an emerging green hydrogen economy in South Africa and globally.
The design and content of the seminars are intended to follow the structure of the background material described above, covering at least the same topics that were considered relevant in this context, but with the difference that the information is now to be applied to the South African context and the ongoing power sector reform, in order to provide initial answers to the questions raised by Eskom's Generation Department as listed in the ToR.
Under Work package 3, following the strategy seminars, the firm of consultants is asked to deliver a final report on the content and findings of the seminars no later than six weeks after the last strategy seminar. The objective of the final report is to summarise the results of the stakeholder engagement in the corresponding strategy seminars and to provide recommendations for suitable adaptation and transition strategies that can subsequently be further elaborated by Eskom (Generation) in a roadmap under Work package 4.
The final report is to be presented to and discussed with Eskom (Generation) representatives and, if requested, other stakeholders such as government representatives in at least 2 (two) workshops. The objective of the workshops is to further coordinate the proposals for potential adaptation and transition strategies developed so far in the project with the participants with relevant decision-makers within and - if requested - outside Eskom and to obtain further input from them.
Work package 4 has the objective of further elaborating in detail the initial ideas for potential adaptation and transition strategies as coordinated with the relevant decision-makers on the basis of the final report in a roadmap and translating them into concrete recommendations for action for Eskom Generation so that it can take advantage of the business opportunities arising from the power sector reform in the future.
Which areas the roadmap will focus on in this context and to what extent cannot be conclusively determined at this stage and is dependent on Eskom Generation's needs at the time of service provision. However, the expected contents of the background material under Work Package 1 and the questions of interest submitted by Eskom Generation and listed under Work Package 2 offer a general orientation and at the same time thematic limitation in this context. The final decision on which topics are to be elaborated in greater depth in the roadmap will be made in close collaboration with representatives of Eskom Generation on the basis of the statements and recommendations for next steps in the final report and the outcomes of the subsequent stakeholder workshops.
The final roadmap is to be presented to and discussed with Eskom Generation representatives and, if requested, other stakeholders such as government representatives in at least 2 (two) concluding workshops.
The tasks to be carried out by the various experts and Team leader are anticipated to be 170 expert days for execution of the various Work packages. It is currently assumed that international and national travel will be possible during the project period. The same applies to holding meetings and workshops that involve personal contact between participants. A sufficient travel budget will be made available and is to be considered by the bidders as part of their bid.
The contract period during which the services described are to be provided is from contract award until 30 June 2023. The number of expert days corresponds to the working days.

Liste und kurze Beschreibung der Bedingungen

1) Trading name and address, commercial register number;
2) Eligibility declaration that no grounds for exclusion in Section 123, 124 of the German Act Against Restraints of Competition (GWB) apply;
3) Eligibility declaration subcontractors if applicable;
4) Association clause if applicable.

Liste und kurze Beschreibung der Auswahlkriterien

1) At least 3 reference projects in the technical field strategy development for utilities and at least 2 reference projects in Europe in the last 3 years;
2) The technical assessment is only based on reference projects with a minimum commission value of EUR 100 000.

Genaue Informationen über Fristen für Überprüfungsverfahren

According to Article 160, Section 3 of the German Act Against Restraint of Competition (GWB), application for review is not permissible insofar as
1) The applicant has identified the claimed infringement of the procurement rules before submitting the application for review and has not submitted a complaint to the contracting authority within a period of 10 calendar days; the expiry of the period pursuant to Article 134, Section 2 remains unaffected;
2) Complaints of infringements of procurement rules that are evident in the tender notice are not submitted to the contracting authority at the latest by the expiry of the deadline for the application or by the deadline for the submission of bids, specified in the tender notice;
3) Complaints of infringements of procurement rules that first become evident in the tender documents are not submitted to the contracting authority at the latest by the expiry of the deadline for application or by the deadline for the submission of bids;
4) More than 15 calendar days have expired since receipt of notification from the contracting authority that it is unwilling to redress the complaint.
Sentence 1 does not apply in the case of an application to determine the invalidity of the contract in accordance with Article 135, Section 1 (2). Article 134, Section 1, Sentence 2 remains unaffected.