Advisor for Government Buildings Energy Services, Oman

The Authority for Electricity Regulation, Oman (AER) intends to appoint an experienced Advisor to provide assistance with a Government Buildings Energy Services rollout program. The Authority seeks proposals from interested Bidders by 29 November 2018 (extended deadline) to provide these advisory services.

Background & Objectives

The establishment of an Energy Services Companies (ESCOs) market in Oman is considered an area of high priority for the Authority. In accordance with the Authority’s 2018 Forward Work Program, the Authority intends to build further upon the various Government building audits that were undertaken in 2017 and 2018 to support the Government’s energy efficiency efforts.

The results of building audits suggest that the majority of Omani Government building stocks are not energy efficient. Feedback received from building facility managers over the course of previous building audits was that it is difficult to manage energy demand in Government buildings, and pressure to reduce energy use in these buildings has increased since the implementation of Cost Reflective Tariffs (CRTs).

Available data on existing buildings in Oman suggest a large potential exists for reducing energy use. Lowering electricity consumption in the Omani Government sector can be achieved by utilizing ESCOs. ESCOs have long served markets internationally by providing improved building performance, access to expertise, and installation of new more efficient equipment and training of building staff with little to no upfront costs; with inherent risks being managed by the ESCOs. The comprehensive building retrofits that ESCOs can perform will allow for simultaneous targeting of multiple building systems, including the building envelope, lighting, ventilation, and air conditioning (HVAC).

Since an ESCO industry does not currently exist in Oman, the Authority sponsored a program that certified local energy auditors. The Authority appointed the Association of Energy Engineers (AEE) to provide a Certified Energy Auditor (CEA) training, examination and certification for a shortlist of 50 Omani nationals in September 2018. The goal is to raise the capabilities of local SMEs to undertake the work of ESCOs and promote employability through the supply of knowledge and skills to match current and future demand in the market. These local auditors can then be initially utilized by international ESCOs that would provide them with first-hand experience in performing energy auditing of buildings that should ultimately lead to the establishment of independent local SMEs in this industry.

The overarching objective of this program is to achieve long-term reduction of energy consumption and operational costs in Government buildings. Initially this is expected to be met by auditing and retrofitting 70% of Government buildings falling under CRTs by 2023.

The full five-year roll-out program is expected to commence over multiple phases. Each phase will begin with the issuance of the RFP to invite proposals from ESCOs for a specific number of Government buildings expected in Q1 2019 for the first phase). The RFP will place a condition on ESCOs to utilize a minimum threshold of certified Omanis to be involved in key roles, and will be an important factor in the evaluation process. This will then be followed by awarding the auditing and retrofitting of these buildings to the most competitive offer (over Q2 and Q3 of 2019).

Finally, the implementation of the identified Energy Efficiency Measures is expected to begin in Q4 2019 for te first phase. Measurement & Verification (M&V) will then be undertaken for the first phase of the program o enable the Authority to determine viability of continuing the roll-out process of the project to ensure that i is economically and technically feasible to achieve the 70% target by 2023.

Scope of Work

The scope of work comprises of three work items as follows:

1. Working Model

To provide the Authority with a recommended working model based upon international best practices for the functioning of ESCOs in Oman. The recommended approach is expected to be adapted to the specific conditions of Oman’s circumstances, legal framework and market conditions.

2. Program Roll-out Design

The Advisor would be required to provide the guidelines for a well-planned program roll-out for servicing 70% of Government CRT customers over the next five years. The roll-out is expected to be carried out over several phases with each phase commencing with tendering to service a specific number of Government buildings and ending with awarding of the tender for auditing and retrofitting of the identified Government buildings to an ESCO.

3. Procurement Support

The Advisor will be required to provide support throughout the first phase of the program roll-out including the preparation of all necessary documentation for this purpose.

For more information, please contact [email protected] referencing N183208.

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