Cost of Capital Update for Electricity Generation Technologies

Tender description

Notice summary: Update of BEIS' estimates and evidence base regarding the cost of capital for investments in renewable and non-renewable electricity generation technologies Description: The purpose of this work is to update the BEIS evidence base and estimates for the cost of capital in relation to investment in renewable and non-renewable generation technologies. The work is divided into two discrete Lots; • Lot 1 (Core Analysis) will require the provision of specialist advice and analysis to provide BEIS with appropriate estimates of the cost of capital across a range of generation technologies, together with a report detailing assumptions and methodology. The work under Lot 1 will also entail discussion with BEIS officials and be open to peer review by an independent reviewer appointed under Lot 2. • Lot 2 (Peer Review) will involve the independent peer review of the outputs under Lot 1, to provide constructive methodological or technical challenge of the work and to provide suggestions as to improvement or qualification of the estimates. Lots 1 and 2 will be let independently. Interested parties may tender for both Lots but cannot be awarded both Lots. If tendering for both Lots, tenderers are requested to state their preference in case of their proposals being ranked first for both Lots. The key part of the work is anticipated to take place primarily from late April through to early June, with interim results from Lot 1 (Core Analysis) to be available by mid-May and presentation of final results by the end of May 2018. The work under Lot 2 (Peer Review) will be partly in parallel, following the presentation of interim and final results under Lot 1. Please Note: We expect both Lots to last up to the end of June 2018 (as indicated in the outline timetable shown in Item 8 of Section 2 of the ITT), which allows for possible iteration of the final results. There is a possibility of further extension of either or both Lot(s) of up to two months, in case further iterations are required in light of new market information/events or if the business needs imply further revenue models need to be addressed within the framework (e.g. new models of storage, etc.).