Consultancy Support - Calculation of the Fixed Costs of a Best New Entrant for the Capacity Payment Mechanism in the SEM Trading Year 2016

Tender description

The Northern Ireland Authority for Utility Regulation (or Utility Regulator) and the Commission for Energy Regulation (CER) , known as the Regulatory Authorities (or RAs) have developed an all-island Single Electricity Market (SEM) which came into operation on 1st November 2007. Further details on the project can be found on the All Island Project website. Part of this work included the development of a Capacity Payment Mechanism (‘CPM’) , which takes the form of a fixed annual sum of money (the ‘Annual Capacity Payment Sum’ (ACPS)), calculated prior to the commencement of the Trading Year (which runs from January to December). The RA’s now invites tenders for Consultancy Support for the Calculation of the Fixed Costs of a New Entrant Peaking Plant for the Capacity Payment Mechanism in the SEM Trading Year 2016. This tender seeks to establish the costs faced by a rational investor in relation to a best new entrant peaking plant for the purposes of determining the Annual Capacity Payment Sum in the CPM for the Trading Year 2016. The work will form the basis of a Consultation Paper to be issued by the SEM Committee during Q2 2015 and subsequent recommendations to the SEM Committee, on which the SEM Committee will take a decision on the appropriate Best New Entrant price for 2016. The services to be provided are: (i) Analysis of costs and recommendation of BNE Peaker for 2016. The RAs expect that the selected consultants will utilize data and information from varied sources and, if applicable, recognised data base or software sources when making their recommendations. (ii) Responses to ad-hoc queries from RAs and industry parties and attending meetings with industry participants as required. (iii) Review and advise on the responses from industry A detailed specification of requirements is set out in Section 2 of the Request for Tender (RfT) document available to download from www.etenders.gov.ie