TERMS OF REFERENCE# 2: ENERGY USAGE REVIEW AND ENERGY MIX PLANNING FOR PARTNER COMPANIES OF NiB-GA

TERMS OF REFERENCE: # 2

ENERGY USAGE REVIEW AND ENERGY MIX PLANNING FOR PARTNER COMPANIES OF NiB-GA

1. Background

The UK Nepal - Nepal in Business- Growth Advisors (NiB-GA) programme, launched in July 2024, is a five-year initiative funded by UK International Development and implemented by DAI Global UK. NiB-GA aims to unlock economic prosperity in Nepal by fostering the growth of small and medium-sized enterprises (SMEs), creating new jobs, and driving private sector-led economic growth.

NiB consists of two main components:

• Business Support Facility (BSF): Provides technical assistance and investment to SMEs to enhance their productivity, competitiveness, and potential for job creation while making them investment ready in the long run.
• Business Environment Reform Facility (BERF): Engages with government stakeholders and private sector associations to reform business regulations, reduce trade barriers, and improve the overall enabling environment for businesses in Nepal.

2. Objective of the Assignment

NiB-GA partners with SMEs in agro processing, tourism, light manufacturing and ICT companies to enhance their productivity and competitiveness. Reliable, sustainable, and affordable energy solution is a critical factor not merely to enhance resilience but also to increase the consumption of green and renewable energy.

Some of the NiB-supported companies face challenges related to energy dependency, costs, and reliability which impacts their business operations ultimately trickling down to low competitiveness. NiB-GA intends to use expert service to assess energy usage, identify cost-effective alternatives, and recommend a transition roadmap towards a sustainable energy mix, with a strong focus on solar solutions (including solar roofing) and other electrification options as would be applicable for specific company being assessed.

NiB-GA will onboard 8-12 partnerships in its first year of implementation who shall be the subject of assessment by the service provider.

3. Scope of Work and Deliverables

The selected expert/team of experts is expected to perform the following tasks:

Phase I: Planning and Inception

Tasks:

• Discuss and agree on the methodology and scope aligning with NiB-GA’s requirements, submitted proposal and timelines
• Finalise matrix and tools to be used for assessment
• Populate list of documents (could include bills, expense records etc.) required for assessment to be provided by the company and NiB-GA
• Agree on the deliverable plan including engagement plan with companies

Deliverable: Revised workplan for the assignment

Timeline: 1 week from contract signing

Phase II: Data Collection and Analysis

Tasks:

• Collect relevant data and reference documents
• Field assessment [includes consultations and interviews of company’s leaderships and staffs as required by the methodology]
  • Analysis of current energy consumption patterns- grid, diesel, LPG, solar, others.
  • Energy intensity and usage calculations, carbon footprint estimation
  • Identify opportunities for energy efficiency improvement.
  • Evaluate feasibility of solar and electric solutions

Deliverable: Baseline report on energy usage and projections on energy use mix

Timeline: 3 weeks from contract signing

Phase III: Validation and Recommendations

Tasks: 

• Present preliminary findings to NiB-GA and company leadership including feasibility assessment to adopt RESCO  model 
• Finalise recommendations in consultation with the company
• Support NiB-GA to estimate contribution to ICF indicators through the partnerships.

Deliverable:

• Recommendation to enhance investment readiness and ESG compliance action plan
• Map and connect with potential RESCO companies for further partnership exploration/ feasibility

Timeline: 4 weeks from contract signing

4. ICF Indicators

NiB-GA intends to contribute to UK International Climate Finance (ICF) indicators through each of its partnership and activities. Hence based on each partnership, identifying activities and interventions that could contribute to below indicators and establishing a basis for estimation would be required. 

• ICF KPI 6: Greenhouse gas emissions reduced or avoided (tCO2e).
• ICF KPI 7: Clean energy capacity installed (MW).
• ICF KPI 12: Private climate finance mobilised (GBP), particularly linked to investments in renewable energy.
• ICF TA 2: Number of individuals and organisations supported by ICF technical assistance (through energy-related capacity building).
• ICF TA 5: Volume of emissions reductions/avoided supported by ICF technical assistance (tCO2e).

Suppliers are expected to be known to the UK’s ICF assessment framework. Specific ICF strategy of NiB-GA shall be shared to selected supplier post contract.

5. Qualifications of the Auditor (Eligibility Criteria)

The applicant firm must demonstrate:

• At least 5 years of experience in energy use assessment/ review/ auditing, renewable energy consulting, or related fields.
• Proven expertise in solar energy systems (especially solar rooftop using RESCO model), electrical efficiency, and energy management systems.
• Capability to calculate carbon footprint and knowhow of ICF indicators and frameworks.
• Multidisciplinary team with expertise in energy engineering, solar technologies, and financial analysis.
• Strong track record in delivering technical assistance for private sectors. 

6. Proposal Submission

Interested service providers (individuals/ firms) are invited to submit their interest detailing below 

• Technical proposal
  • A two/three pager approach and methodology with timelines on how the assessment shall be executed 
  • Experience of expert/s in providing services similar to the scope of work and CVs of the team
  • References of energy planning as applicable. Experience in designing innovative models like RESCO preferred.
• Financial proposal
  • Quote on number of days engaged by the expert/s and overall budget for one assessment and recommendation. 
  • Please note that assessment of some companies might require field visit for which expenses as per actual shall be covered by NiB-GA directly and hence is not a part of financial proposal.
• Regulatory requirements 
  • Certification of registration, VAT clearance and renewal as applicable for firms
  • PAN certificate for individuals

Please submit these documents via email at procurement_NIB@dai.com. Applications will be evaluated on a rolling basis.

7. Evaluation of Proposals

Proposals will be evaluated using the following criteria:

• Technical Approach & Methodology – 30% 
• Relevant Experience of Firm – 30% [section 4 of the TOR]
• Team Composition & Expertise – 40% [CVs and expert’s credentials]

Applicants will be ranked using the above criteria and those passing the 70% score shall be maintained in the rooster of service provider for this task. Subsequently, aligning with company’s area of expertise, geographic distribution and other factors, NiB-GA’s partner companies shall be allocated to the service provider through separate contracts. Budget is not a part of proposal evaluation but financial negotiation with supplier shall be done as deemed necessary by NiB-GA.

8. Working and Reporting Arrangements

The service provider shall work under the supervision of Private Sector Partnership Director of NiB-GA. NiB-GA will facilitate the process of engaging with partner company including obtaining necessary documents, data as available with the company for assessment.