The Republic of Seychelles is at crossroads. With the price of oil recently reaching heights of around 140 USD/barrel recently , the need to diversify the energy basket of the country has been recognised by all stakeholders and therefore there is an identified need to have a comprehensive energy policy to chart the way forward. The objective of the assignment is to prepare a long-term Energy Policy for the Government of Seychelles. The definition of a long-term Energy Policy should take into account the Government's objectives for the energy sector as spelt out in the Budget and Presidential address. As per discussions held with the stakeholders, the definition of the long-term energy policy will need to address the following goals: - A diversification of the energy base of the country so as to reduce dependence on imported energy carriers thereby limiting the vulnerability of the country to imported fossil fuels while taking into consideration the risks involved;
- allow optimal use of local and renewable energy sources by ensuring that these alternative energy projects are evaluated on the basis of providing benefits to consumers;
- enhance protection and preservation of the environment, in particular the reduction of the emission of greenhouse gases;
- promote energy efficiency in all sectors of the economy including the transportation sector as well as energy conservation in buildings in uses such as air conditioning and refrigeration;
- provide affordable energy to all sectors of the economy while ensuring the financial sustainability of the electricity public utility;
- promote economic growth and job creation by ensuring reliable supply of energy at internationally competitive prices; and
In view of the above, the Energy Policy is therefore expected to cover the following: - an energy sector vision up to 2020;
- strategic priorities for Government to take timely decisions with a view to ensuring security of energy supply;
- improved legal and regulatory framework to promote private sector investment in an open, competitive and transparent manner in line with best international practice;
The detailed Terms of Reference giving a full list of duties is available at the UNDP office and for downloading from the UNDP website (http://un.intnet.mu), job section. Individuals and firms are invited to apply. In the event of firms submitting more than one CV per position, then only the first CV will be evaluated . |
The issues that will need to be addressed in the context of this assignment comprise the development of an Energy Policy for the Republic of Seychelles and shall include: A. Energy Supply (i) To identify and analyse the challenges, opportunities and threats faced by the main islands of Seychelles in terms of - availability, reliability, transportation and prices of primary sources of energy;
- whether introducing more power feeding points on the grid would be more beneficial;
- whether distributed microgeneration from solar and wind sources are viable technically and financially under the current circumstances.
(ii) Assess the viability of renewable sources of energy for the main islands of Mahe, Praslin and La Digue and also for the Outer Islands. In carrying out this task, the Consultant will have to take into consideration other studies being carried out for the Seychelles Government. (iii) Formulate the policy and strategic orientations for ensuring the security, reliability, diversity and quality of supply, including - options for the right energy mix and strike a balance between renewable and non-renewable sources of energy taking account of costs, balanced risk assessment and need to produce energy at internationally competitive prices;
- evaluate the introduction of natural gas in electricity generation, road transport, and cooking considering the environmental friendliness and cost effectiveness thereof. the potential role of Independent Power Producers in the local context, while ensuring adequate standards of reliability;
- an assessment of the sectoral energy prices;
- energy pricing strategies based on affordability to end-users and financial sustainability of the electricity public utility;
- Fiscal incentives for microgeneration and renewable energy initiatives.
(iv) Assess the possibility of regional power grid interconnection taking into account the economic, social and environmental costs especially from Mahe to Praslin. B. Energy Utilisation - Review the demand and supply matrix and power sector capacity expansion plan for the next 15 years taking into account the possibility of green taxes and measures to encourage energy conservation;
- Analyse the evolution in the energy demand for the past 15 years;
- develop a policy framework for energy efficiency;
- Identify means and ways of introducing demand side management and promote research in energy technology as appropriate for the local context including outer islands;
- assess sectoral energy use and opportunities for the introduction of energy efficiency measures;
- Assess current and define future data collection needs for the National Statistics Bureau to enable a thorough assessment of the situation at any point in time.
In carrying out this task, the consultant should set out possible scenarios for the horizon being considered and assess issues which may arise. Demand should be analysed from as many perspectives as possible, national, geographic, sectoral etc. C. Electricity Sector - Assess the potential of existing generation facilities, including potential of efficiency improvements, and their likely duration of their operation;
- Advise on the type, sequencing and timing of new generation facilities including co-generation and combined cycle gas turbines and assess the cost implications for consumers;
- Suggest price ranges which would be acceptable for potential IPP proposals;
- Propose an investment programme for the new generation facilities and ensuring financial sustainability of the power utility ;
- Devise incentives for enhanced use of renewable energy or disincentives for fossil fuel based electricity generation; and
- Explore the potential for carbon financing including through the voluntary market.
D. Transportation - Review major aspects of land transport (public and private) in relation to energy use and identify policies that would enhance efficiency and energy savings in the sector in the short term, taking into account social acceptability;
- Examine the need for a biofuels policy;
- Review relevant aspects of the transport sector other than land transport, namely maritime transport and aviation, as applicable in this context.
E. Environmental Aspects - Assess the environmental impact of future energy production, distribution and use on both climate change and local environment;
- Assess the best environmental option not entailing excessive cost for the Seychelles;
- Estimate revenues from carbon financing under the various options (This will be subject of a separate assignment to be incorporated in the policy document);
- Assess the need for awareness campaigns for better energy conservation and adoption of renewable energy technologies;
- Identify future studies which could be carried out.
F. Economic and Financial Analysis - Assess economic and financial implications as well as environmental cost of the various options and issues discussed in A to E above using appropriate modelling tools;
G. Institutional and Regulatory Framework - Review the present policy and institutional framework, in the energy sector, including the mandate of the Energy Affairs Divisioon based on the findings of the study and make proposals for changes therein to enhance their effectiveness;
- Propose institutional and regulatory changes (and if necessary legislative action) to ensure an open, transparent and competitive process for seeking and selecting private sector involvement in the production of energy products;
- To propose guidelines on the setting up of a Regulatory Body for the energy sector which would be responsible for tariff setting and assessing the viability of new projects, and their impact on tariffs while safeguarding the interests of all stakeholders.
H. Masterplan / Action Plan (i) Develop a practical and coherent masterplan / action plan for the period 2008 - 2020 based on economic, financial, social and environmental sustainability in relation to: - Energy and Electricity Mix;
- Energy Conservation and Efficiency Bill;
- Construction of new power plants;
- Development of renewable energy initiatives.
(ii) The purpose of the masterplan will be to serve as a possible schedule for energy projects over the next 15 years. The plan should be accompanied by cost estimates for each project. |
