Viability Assessment for Potential Wind Power Electricity Generation Projects - Consulting... Tender

Procurement Summary

Country : Armenia

Summary : Viability Assessment for Potential Wind Power Electricity Generation Projects - Consulting firm

Deadline : 28 Apr 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 81697399

Document Ref. No. : TA-6959 ARM

Competition : ICB

Financier : Asian Development Bank (ADB)

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Viability Assessment for Potential Wind Power Electricity Generation Projects - Consulting firm

Approval Date: 27-Sep-2022

Deadline of Submitting EOI: 28-Apr-2023 11:59 PM Manila local time

Estimated Commencement Date: 01-Aug-2023

Estimated Commencement Date: 916, 474 USD

Engagement Period: 24 MONTH

Objective and Purpose of the Assignment BACKGROUND 1. The knowledge and support technical assistance (TA) will support the preparation of potential wind power projects in Armenia through site-specific technical, economic, commercial, and safeguards analyses of prospective sites identified in previous studies of Armenia-s wind energy potential. The TA will support the Government of Armenia-s selection of a site or sites for investment in electricity generation from wind, and will likewise inform decisions on structuring prospective investments and selection of procurement options. The TA will promote the achievement of the following Sustainable Development Goals (SDGs): (i) furthering access to modern, clean, and sustainable energy (SDG 7); (ii) contributing to Armenia-s energy security and economic competitiveness (SDG 9) through harnessing of lower cost indigenous primary energy sources; (iii) taking urgent action to combat climate change and its impacts (SDG 13) by developing a wind power electricity generation farm; and (iv) supporting gender equality and empowerment (SDG 5) through capacity building among female energy professionals in Armenia. The TA is aligned with the Asian Development Bank (ADB) Strategy 2030 and its second operational priority (OP) 2 (accelerating progress in gender equality), OP3 (tackling climate change), and OP6 (strengthening governance and institutional capacity).

2. A least-cost energy development plan for Armenia (2019), sponsored by the United States Agency for International Development (USAID), identifies the development of Armenia-s abundant solar and wind potential as the clear least-cost options for new generation capacity in Armenia. The least- cost energy development plan established a baseline development scenario that would see the deployment of up to approximately 1, 500 megawatts (MW) of new solar photovoltaic and 500 MW of wind generation capacity. The introduction of 500 MW of wind capacity would provide an annual generation of more than 1 billion kilowatt-hours (kWh), equal to 17% of current electricity consumption in Armenia. On the longer term, a doubling of this variable renewable energy generation capacity appears to be economical and will dramatically improve Armenia-s energy security and independence. Currently, only 35% of Armenia-s total electricity demand is met by indigenous resources (primarily hydro), whereas 65% of electricity generation is reliant on imported natural gas and nuclear fuel. With no indigenous fossil fuel reserves, the country is dependent on natural gas and oil imports from the Russian Federation (via Georgia) and Iran, as well as nuclear fuel (also from the Russian Federation) for its nuclear power plant that provides roughly 30% of Armenia-s electricity generation. The government promotes the development of renewable energy generation capacities in its Armenia Energy Sector Development Strategic Program to 2040. Following recent progress in the development of Armenia-s solar energy potential, the government plans to strengthen its wind power development agenda to expand renewable energy generation, and thereby diversify the power generation mix.

3. The TA will deliver site-specific feasibility analysis of candidate wind power project sites and a robust utility-scale project pipeline. The TA will inform government decision-making on the scale and method of procurement of wind power capacities and enable the government to mobilize capital to develop Armenia-s indigenous energy resources, thereby reducing reliance on imported fuels and delivering lower cost power generation to the benefit of the Armenian economy. This TA will also help lay the groundwork for a public-private partnership (PPP) option, should the requirements for it in Armenia-s new Public Investment Management (PIM) framework and other fiscal management rules be met when public procurement options are appraised. In addition to the feasibility work, the first phase of the TA will support the Ministry of Territorial Administration and Infrastructure (MTAI) comply with the new PIM framework requirements of Armenia. Contingent upon, among other things, the confirmation of the viability of a commercially oriented wind energy investment under this TA and all the necessary PIM and PPP framework criteria (including clear value-for-money tests), a second phase of technical assistance (through a second TA grant project) is planned to support the preparation of a sustainable PPP transaction, in full compliance with national PPP legislation and its competitive bidding principles. The government-s recently adopted PPP framework is among the options that the government intends to consider for mobilizing investment in the country-s wind resources. The development of Armenia-s wind power potential will deliver climate mitigation benefits through an increased renewable energy share in the overall country energy mix. The proposed wind farm projects will support achievement of the government-s nationally determined contributions and a renewable energy target of 15% share in the total electricity mix by 2030 with the long-term target of 26% by 2040.

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