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Request for Proposals: Support to Achieve Final Energy Intensity Target

SUMMARY OF PROCUREMENT

WRI intends to award a cost-reimbursable type contract to assess the potential impacts on the implementation of the carbon pricing policy, particularly for selected sectors. The project has an expected end date of April 2021 with 3 phases of work and major deliverables due in November 2020, February 2021, and April 2021.

The objective of the project is to analyze the influence of energy programs and activities related to the target of reducing final energy intensity. The end of the study is to determine how much conservation programs and activities have the potential to reduce energy intensity and the budget needed to be prepared for these activities. This project will focus on studies to analyze and find the best energy efficiency programs and activities. The study will also analyze how much energy savings could be obtained and budget allocation to achieve final energy intensity reduction targets in industry, transportation, commercial, and household sectors. Surely, implementing energy conservation and energy efficiency in each sector could also support the government’s target of reducing greenhouse gas emissions (GHG) in the NDC target.

About the World Resources Institute

Founded in 1982, The World Resources Institute (WRI) is a global environmental think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build solutions to urgent environmental challenges. WRI’s transformative ideas protect the earth and promote development because sustainability is essential to meeting human needs and fulfilling human aspirations in the future.

About the Project

Climate change is an important issue in Indonesia. With more than 17 thousand islands, majority of Indonesia’s people lives in the low-lying coastal area, which is exposed to the physical risks and socio-economic impacts of climate change. Indonesia is one of top GHG emitter and the emissions is increasing rapidly not only because of growing of population but also triggered by economic growth. As such, Indonesia is predicted to be the fourth largest’s economies in 2050.

Indonesia has committed to reduce GHG emissions up to 29% unconditional and 41% conditional by 2030. To achieve this along with the achievement of global development agenda 2030 (SDGs), Indonesia is committed to putting in place sustainable development principles that balance the economic, social, and environmental aspects. The development of green economy, involving business models that incorporate inclusive development, greenhouse gasses emission (GHG) reductions, also ensure maintenance and restoration of natural capital in the form of healthy functioning ecosystems as a basis for sustained economic growth. To underline this commitment of implementing LCDI, the Ministry of National Development Planning/Bappenas has launched the LCDI report in 2019. Further, the result of the LCDI report has been integrated into the National Medium-Term Development Plan (RPJMN) 2020 – 2024. This has made RPJMN 2020 -2024 as the first low carbon development plan in the history of Indonesia.

Energy plays a critical role in a country's national development. It acts as the prime driving force of economic growth; hence energy availability, affordability, and accessibility are essential factors for the development. Indonesia's national energy demand grows at an average rate of 7% each year. The national energy consumption reaches 920 million Barrels of Oil Equivalent (MBOE) in 2018, consisting of 291 MBOE, 42 MBOE, 128 MBOE, and 391 MBOE in the industry sector, commercial sector, household sector, and transportation sector respectively. Unfortunately, 95% of this consumption is supplied by energy generated from fossil.

The government has a policy and target in National Energy Policy and National Energy Planning (RUEN) to reduce final energy intensity 1% per year, which was in 2018. The final energy intensity accounted for 83 BOE/billion IDR. The RPJMN has been targetted to reach the energy intensity reduction to the level of 0.9 – 0.8 barrel oil equivalent/billion IDR annually from 2020 to 2024. Specific programs and actions for energy efficiency could be supported for achieving the target such as Implementing minimum energy performance standards, Implementing energy audits for industries, buildings and power plants, implementing fuel economy standards in the transportation sector, and other energy efficiency activities.

However, there are some obstacles to achieving the final energy intensity target since the energy efficiency program and activities occur in all demand sectors. Due to the broad areas, it needs a massive effort and extra coordination amongst ministries/sectors in Indonesia. Furthermore, it is also a challenge to identify and quantify the energy efficiency program activities adjusted to the limited data and information available in these sectors. The third challenge is also how-to determining targets in line with how much costs to be taken through energy conservation actions. This is essential to match the target, the programs, and the money allocation in each implementation year (money follow program concept).

SCOPE OF WORK AND DELIVERABLES

This study project is intended to analyze the influence of energy programs and activities related to the target of reducing final energy intensity. The end of the study is to determine how much conservation programs and activities have the potential to reduce energy intensity and the budget needed to be prepared for these activities. The requested deliverables of the project are as follows:

  1. Study and identify all energy efficiency programs and activities in all energy sectors. Some programs and activities have been mandated in the National Energy Planning Document (RUEN). Moreover, the EE program and activities can also be found in the Energy Sector GHG Emission Report, and in the energy conservation data and information published by Directorate General of New Renewable Energy and Energy Conservation, MEMR.

  2. Analyze each energy efficiency program and action and quantify the potential for energy savings that could contribute to the final energy intensity reduction target. In this analysis, it will also include the analysis of the future challenge of EE implementation.

  3. Identify the allocation of money and how to deliver that budget in each program and actions.

OBJECTIVE

The purpose of this study is to achieve the final energy intensity reduction, including:

  1. Analyze energy conservation programs & activities in energy sectors that are significant potential in energy savings (MEPS, implementation of energy audits, fuel economy standards, and other programs),

  2. Calculate how much the reduction in the intensity of energy (BOE/billion IDR) from all energy the conservation programs & activities that have been defined,

  3. Calculate much budget allocation needed from each action of the energy conservation programs & activities including investment analysis from private sectors to achieve the target,

  4. Develop a priority list of analyzed programs and activities to be implemented based on marginal abatement cost (MAC) analysis, and

  5. Set the recommendation regarding the best policies and measures in implementing the EE programs and activities that could support achieving the target, including fiscal incentives and stimulus to support the policy implementation.

TIMING

Indicative Project Timeline: October 2020 – April 2021

Indicative Phases Timeline:

Task Start and end dates
Phase One Study how energy efficiency programs & actions potentially support reducing the final energy intensity target in energy sectors (industry, transportation, building commercial, and household sectors) November 2020
Phase Two Production of the calculation of the reduction in the final intensity of energy (BOE/billion IDR) from all energy the conservation programs & activities, including how much allocation budget based on the study findings. Dec 2020 – Feb 2021
Phase Three This phase is expected to convey recommendations and show an example (pilot) regarding the best policies and strategies for implementing the EE programs and activities. February – April 2021

Indicative Milestones:

⁻ Kick-off meeting : October 2020

⁻ Inception report : November 2020

⁻ Draft final report : March 2021

⁻ Dissemination report : April 2021

BUDGET

Budgets up to 100,000 GBP will be considered and must break down expected team members, respective day rates, and anticipated days on the project. Please note this information will also be required on invoices, as this award will be paid on a cost-reimbursement basis.

Please note that WRI is an IRS-registered 501(c)3, tax-exempt organization. WRI is not VAT exempt. All prices or quotes should include VAT and tax, as applicable.

GUIDELINES FOR PROPOSAL SUBMISSION

Proposal content

The selected organization or consultant will be able to demonstrate capacity in similar work. Prospective organizations or consultants should consult the Innovation and Challenge Fund submission document, which will ask the organization or consultant to submit:

  • A statement of interest describing the proposed team and how it meets the above requirements;

  • CVs of team members;

  • Examples of and/or references for similar previous work;

  • An outline of the proposed methodology and workplan;

  • An account of how the work and/or organization is sustainable

  • A proposed budget with a breakdown of costs sufficient to assess reasonableness and compliance with our funder requirements. If proposing for a Fixed Price contract, please also include a competitive payment schedule associating amounts with work milestones.

  • If a reimbursable type of contract is envisioned, a summary of accounting system which will support claims.

Expression of Interest, Deadline for Questions, and Proposal

All proposals to this RFP must be received via email to the contacts below by October 9, 2020 (Washington, DC). Expressions of interest and Questions must be submitted prior. Answers to the questions will be shared will all parties who have asked questions or otherwise expressed interest.

  • Egi.Suarga@wri.org, Ari.Adipratomo@wri.org, eva.costa@wri.org

EVALUATION AND SELECTION

Evaluation Criteria

The following elements will be the primary considerations in evaluating all proposals submitted in response to this RFP:

• Completion of all required elements;

• The extent to which the organization’s or consultant’s proposal fulfills WRI’s stated requirements as set out in the RFP;

• Experience with similar projects

• Sustainability – WRI values sustainability and all other factors being equal, will favor a proposal to more sustainably perform the work.

• Overall cost of the proposal.

The bidder offering the best overall value will be selected. For this procurement, price and non-price aspects are considered to be of approximately equal importance.

Selection Process

No proposal development costs shall be charged to WRI / all expenses are to be borne by the bidders. WRI may award to the bidder offering best value without discussions. However, WRI reserves the right to seek bidder clarifications and to negotiate with those bidders deemed to be within a competitive range.

WRI may, at its discretion and without explanation to the prospective organizations or consultants choose to discontinue this RFP without obligation to such prospective organizations or consultants or make multiple awards under this RFP.

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