Objective and Purpose of the Assignment
1. Timor-Leste is taking steps to improve the electricity sector performance, sector policy formulation and regulation. In this context, the Government of Timor-Leste established EDTL, E.P. as a state-owned enterprise (SOE) in the electricity sector based on the Decree Law No. 29/2020, of 22 July 2020. EDTL became fully operational on 1 January 2021. EDTL, E.P. is responsible for undertaking restructuring measures in reforming the electricity sector with the aim of expanding electricity supply and modernizing the country’s electricity system. This also includes implementing a management system with the goal of improving EDTL’s service to consumers, improving quality and reliability of power supply at affordable prices, transitioning from diesel-based generation to low-cost renewable energy, and taking measures to ensure its operations are sustainable.
2. In this context, the National Authority for Electricity, Public Institute (ANE, IP.) was established through a Decree Law No 40/2020 of 25 September 2020. The ANE is tasked with undertaking regulation of the power sector, defining a renewable energy strategy whereby the country can transition away from expensive fossil fuels to low-cost renewable energy by implementing a strategy for investment in alternative renewable energy sources that will guarantee national energy security, and promote energy efficiency policies and programs.
3. The implementation of environmental sustainable energy policies must be done in a compatible manner in order to promote (and prioritize) the sustainable use of renewable energy resources, energy efficiency, sector regulation, and value generating economic activities. In this regard, ANE must have the tools and knowledge on: (i) tariff setting and regulating the power sector; (ii) appropriate renewable energy technologies; (iii) international best practices of renewable energy policies and costs, net-metering guidelines, energy efficiency programs (lighting, testing and appliance labelling), (iv) formulating a roadmap for transition to renewable energy and drafting an energy efficiency program that targets the low-hanging fruit, namely lighting programs; and (v) the private sector can invest in, operate, and manage renewable energy systems by selling power to the national grid based on competitive transparent bidding process and an agreed power purchase agreement (PPA). Reliable access to low-cost electricity in turn will lead to increased opportunities for economic development, job creation, and poverty alleviation in Timor-Leste.
4. The technical assistance will be structured into two phases. The terms of reference for Phase I is to undertake an assessment of the country’s electricity regulation, institutional structure, and policy situation to recommend a comprehensive system of enhanced regulation, with careful consideration of institutional structure to avoid conflicts of interest, and policy reform designed to enable the efficient evolution of the power sector over the next decade. The regulatory assessment conducted by the consultants will consider (i) regulatory challenges, capacity building needed in sector regulation, and tariff setting; (ii) renewable energy policies and regulation, and how to promote distributed renewable energy (including solar rooftop, and floating solar) where IPPs can play an important role, net-metering provisions, and possible third party access to transmission and distribution lines; and (iii) how ANE should formulate energy efficiency policies to implement priority programs in Timor-Leste.
5. Specifically, the consultant will:
i. Review the existing electricity sector regulatory framework, institutional structure, laws, and polices. Then recommend a clear set of actionable tasks, regulations, laws, and policies with implementation timelines to strengthen the overall electricity sector regulatory framework. The recommendations will take into consideration the capacity of the key stakeholder institutions, country specific constraints, and the stage of development of the electricity sector;
ii. The recommendations should be strengthened with international case studies applicable to the specific country context in Timor-Leste, and a detailed description of the rationale and desired outcome for each recommendation; and
iii. Draft a comprehensive terms of reference for a consulting firm to support the implementation of the recommendations;
6. ADB seeks to engage an Energy Efficiency Specialist to undertake the assignment for a total of 66 working days on an intermittent basis. The expert is expected to commence work by October 2022 until February 2023.
Scope of Work
An Energy Efficiency Specialist will work closely with the Power Sector Regulatory Specialist and ANE in determining the potential for energy efficiency and train ANE counterparts in formulating policies on energy efficiency, guideline and regulations to implement energy efficiency programs in Timor-Leste that is focused on the low hanging fruit. Based on comprehensive review of the ongoing/lack of energy efficiency initiatives in Timor-Leste, the expert will help to conceptualize the business model for implementing energy efficiency programs. The expert will also provide recommendations on a set of required actions to address the barriers to energy efficiency and accelerate full realization of the potential of improving energy efficiency in Timor-Leste.
Detailed Tasks and/or Expected Output
The consultant’s work shall include, but not limited to, the following:
i. Assist ANE in preparing an energy efficiency policy, including setting targets, implementation strategy, investment, and institutional arrangements. Also identify if new laws and regulations will be needed or if it can be done within existing framework structure of ANE;
ii. Given Timor-Leste’s situation and its heavy dependence on fossil fuels, show how implementation of energy efficiency lighting programs and building energy efficiency program can have a positive impact on power demand growth, resulting in lower generation costs to EDTL. Identify the need for building energy efficiency codes and prepare terms of refence for this scope of work;
iii. Assess the potential of introducing minimum energy performance standards (MEPS) for lights, electric motors, electric fans, among other items in targeting energy efficiency improvements;
iv. Propose appropriate business model for the energy efficiency projects in item ii above and train ANE counterparts in undertaking sample appraisal of the project’s technical, financial, and economic feasibility;
v. Propose actions to address the barriers to energy efficiency for consideration in designing of the proposed energy efficiency project. This covers all areas including policy, institutional, finance, information and technology;
vi. Review the roles and responsibilities of all stakeholders, appraise their institutional capacity, and propose a suitable arrangement for successful implementation of the proposed energy efficiency project;
vii. Assess the role of energy services companies (ESCOs) market that can serve the energy efficiency needs of all levels of the government. Provide recommendations to ANE of the required regulations and policies that will have to be enacted to enable ESCOs operations;
viii. Estimate the amount of emission control and pollution reduction capacity of the proposed energy saving solutions;
ix. Conduct a seminar to ANE counterparts and Ministry of Finance on merits of energy efficiency and showcase case studies of sample projects undertaken in ASEAN. The consultant is required to coordinate and cooperate with other specialists closely on this seminar and with ADB Project Officer/Team Leader; and
x. Carry out other relevant tasks assigned by ADB Project Officer/Team Leader.
The consultant shall coordinate closely with the ADB project officer or the ADB project officer may augment the tasks outlined as required, to comply with ADB guidelines and procedures and to improve the quality of the overall due diligence. The tasks may be required to be carried out in close cooperation with ANE, and consultant will ensure transfer of knowledge and full ownership of the processes and documents to ANE.
The selected consultant will produce the following outputs:
● Inception Report provides the methodology for technical delivery of the assignment with a clear timeline, required data, and implementation framework.
● First Draft Report, the Energy Efficiency Specialist will conduct a critical analysis of the energy efficiency regulation in Timor-Leste, identifying the opportunities and challenges within the sector. Then recommend a clear set of actionable tasks, regulations, laws, and policies with implementation timelines to strengthen the energy efficiency regulatory framework in Timor-Leste. The recommendations will take into consideration the capacity of the key stakeholder institutions, country specific constraints, and the stage of development of the electricity sector. This report will be consolidated with the overall electricity sector regulatory framework report drafted by the Power Sector Regulatory Specialist. The Energy Efficiency Specialist will conduct a peer review of the overall electricity sector regulatory framework to strengthen the report and provide technical support to the Power Sector Regulatory Specialist as required.
• Support the Power Sector Regulatory Specialist conducted a Stakeholder presentation/consultation on the First Draft Report.
● Final Report, provide support to the Power Sector Regulatory Specialist to address the comments, feedback and views of the Steering Committee in the First Draft Report.
• Provide support to the Power Sector Regulatory Specialist to draft A Terms of Reference for a consulting firm to support ANE implement the recommendations of the Final Report in a staged approach.
Minimum Qualification Requirements
The consultant must have
(i) at least a bachelor’s degree in engineering or related field;
(ii) a minimum of 10 years of experience in structuring energy efficiency and renewable energy projects;
(iii) excellent written and oral English skills; and (iv) experience in international cooperation and management. Solid understanding of the energy efficiency markets in the Southeast Asian Region will be an advantage.
Apply by: 13 Oct 2022
