Download Analytical Support to Develop an Energy Efficiency and

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Terms of Reference
Analytical Support to Develop an Energy Efficiency and
Renewable Energy Initiative
1 Introduction
The world faces two interrelated energy challenges that require serious capital mobilization: access to
affordable, reliable and low emission energy must be extended to the 1.5 billion of the developing world
without access to modern energy to alleviate poverty and drive economic development. At the same
time global greenhouse gas emissions must be stabilized to avoid catastrophic climate change. To
address these long-term challenges there is a need to leverage private sector investments to significantly
increase renewable energy capacity in developing countries’ energy supply. The Norwegian government
is pursuing approaches to reduced emissions from the energy sector and increased access to energy in
developing countries through scaled-up financing of energy efficiency and renewable energy.
Through concerted action developing countries and private sector could be given incentives to shift the
energy sector from emission-intensive to low-emission platforms by providing steadily rising incentives
in the form of financial, technological and capacity development support. Results-based incentives could
greatly enhance the effectiveness of efforts to increase access to renewable energy and reducing
emissions from the sector, compared to business as usual. The incentive structure or structures should
be simple and flexible and preferably accommodate developing countries through a phased approach,
reflecting their different circumstances. A results-based system demands careful development and
implementation of appropriate systems for monitoring, reporting and verification of results. All
developing countries, whether they currently have high or low access to energy, should be incentivized
to participate to maximize the impact.
The approach suggested builds on a phased approach based on country ownership as well as increasing
quality of the related MRV. The system should allow adjustment to the specific needs, preparedness and
technological level of the energy sector of each country. Implementation of these phases will necessarily
be different in different countries and the possible analytical underpinning for the suggested approach
needs to be developed further. In the first phase developing countries would receive grants to develop
an energy strategy, possibly as part of an emission development strategy. In the second phase, the
energy strategy implementation phase, grant support would be provided to build capacity, while largescale payments would be provided for demonstrated results in providing access to renewable energy. In
the third phase, countries would receive payments for verified energy access rates and emission
reductions, as measured by appropriate MRV procedures, potentially moving towards inclusion in formal
carbon markets. Phase 3 will initially require increasing amounts of financing, as emission reduction
volumes and price per unit increase. In phase 3, increasing private finance should be expected.
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There is a continuous need for analyzing the effects of alternative policies and strategic choices. The
objective of this tender process is to secure access to expert assistance for such analysis.
2 Scope of work
The client wishes to sign a contract with a leading consultancy that can provide strategic support within
the fields of renewable energy, energy efficiency and global climate change. Within these fields, a range
of geographic and professional expertise is sought, including financial, energy policy and regulatory, and
global climate change policy and negotiations. The actual work carried out by the successful consulting
team will be on an on-demand basis and will require rapid mobilization of resources and expertise. The
work in progress under review is in need of support in developing its thinking along several tracks, which
includes but are not limited to:

Analysis of the feasibility of developing a sectoral approach to the energy sector as a possible
tool to motivate developing countries and industry to reduce greenhouse gas emissions from the
energy sector.

Analysis of available policy mechanisms to promote energy efficiency and renewable energy in
various country settings. What are current experiences, lessons learned, pros and cons etc.

Development of options for a performance/resultbased incentive system for effective
deployment of renewable energy technologies. This would include a combination of financing
instruments that can be used in various country settings.

Analysis of how an enabling regulatory environment that promotes business can be created in
various settings. For the renewable energy sector, this can include policies that support private
sector participation, public-private partnerships, and availability of financing for renewable
energy technologies. This can also include availability, or willingness to develop, local capacity
along the renewable energy supply chain, including manufacturing, training, and operations and
maintenance.

Analysis of potential barriers and vested interests who would work against a low emission
development path in the energy sector. The policies that govern energy markets are highly
politicized and central to the organization of modern economies. The assessment should include
what drives political decision-making in the energy sector, how this shapes particular policies
and programs, who are the main “winners” and “losers”, and what possible implications are for
development strategies and programs.

Establishment of a system for monitoring, reporting and verification (MRV) of access to energy
and GHG emissions. This would include how national systems could be established, MRV
requirements in the various phases, options for setting reference levels (baselines) etc. The
system must build on, and be compatible with, existing and new systems of MRV under the UN
Framework Convention on Climate Change, including the IPCC guidelines for emission
inventories.
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
Global and local cost curve development for energy efficiency and renewable energy.

Barriers and opportunities to leverage private sector investment for energy efficiency and clean
energy. Key will be to engage the private sector in dialogue concerning the barriers they meet at
the country and project level and assess mechanisms to reduce risks for potential investors. How
to improve the enabling framework for private sector investments.

Development of options for a performance/resultbased incentive system for effective
deployment of renewable energy technologies in the absence of a larger trading system/carbon
markets and a (global) price on carbon.

Present an overview over ongoing studies and work relevant to the abovementioned issues.
The consultant may also be expected to facilitate discussions, meetings, seminars etc.
The consultancy chosen to support these efforts would mainly add value through creative, facts based
problem solving approach in close consultation with the Ministry of Foreign Affairs. A key requirement in
the vendor selection process is that the vendor must be able to work closely with the MFA, deliver
requested outputs on a daily basis and commit to deadlines set within such a framework. The consultant
team will work closely and on a day-to-day basis with the MFA in developing the needed analyses and
solutions proposals.
The agreement period is for 2-3 months, starting from contract signing. The work will start immediately
upon selection of candidate and terms of agreement. Consultants must be able to communicate and
write in Norwegian and English.
The consultants will be considered in relation to the award criteria stated in the Konkurransegrunnlaget,
section 9.