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Capacity Building to Improve EE in Power Plants

Capacity Building to Improve Energy Efficiency in Power Plants

Indonesia and Denmark are cooperating through an Environmental Support Programme, with the current third programme phase (ESP3) running from 2013 to 2017. The overall ESP3 development objective is to support the Government of Indonesia (GoI) in reconciling economic growth with sustainable development through improved environmental management and climate change mitigation and adaptation.

The Danish government has likewise initiated a government to government cooperation with Indonesia on energy and energy efficiency to strengthen the partnership between the two countries. A Memorandum of Understanding was signed between the MEMR and the Danish Ministry of Energy, Utilities and Climate on October 22, 2015. The objective of the Strategic Sector Cooperation (SSC) is to assist Indonesian government agencies and other relevant stakeholders in developing relevant policies, strategies and solutions to increase the electrification rate and to achieve the government’s long-term RE and EE objectives.

The Danish partner of the SSC program is the Danish Energy Agency and the main partners in Indonesia are the Ministry of Energy and Mineral Resources (MEMR) and the National Energy Council (NEC), who are both represented in the steering committee. Also, the Danish Energy Agency cooperates with the state-owned electricity company (PLN). The Consultancy must assist the Danish Energy Agency in the cooperation with the above mentioned institutions with the purpose of improving the energy efficiency (EE) of thermal power plants in Indonesia.

Coal based power plants (PP) contribute more than 53% of total power generation in Indonesia and are a major source of CO2 emissions. PP are typically designed for an economic and stable life span of 25 years, after which the level of performance starts deteriorating as a result of degradation of equipment, components and materials. Deterioration may also take place before the completion of the useful life of 25 years, if the units are not operated and maintained properly or suffer from inadequate design. Deterioration in performance is reflected in frequent forced outages, reduced outputs, decreased efficiency and increased cost of generation. This results in costly repair and loss of revenue.

Reports show that there is a large potential for improving energy efficiency in existing PP globally and Indonesia is no exception. A report by the IEA documents that the average coal-fired plant in Indonesia operates at efficiencies well below its design value.

The objective of the consultancy is to facilitate improvements in energy efficiency of PP in Indonesia by enabling the DGE to enforce current and planned/potential future regulatory requirements related to PP efficiency. 2-3 site visits to representative coal fired PPs are foreseen.

The outputs to be produced under the assignment comprise:

Output 1: Identification of low-hanging EE and flexibility opportunities for PP, including prefeasibility study.

Output 2: Capacity needs assessment of PLN to ensure efficient power plant operation.

Output 3: Strengthening the capacity of DG Electricity in monitoring of the EE level of PPs and suggestions for further improvement of an effective legislation to improve EE in power plants.

The assignment will need approximately 3.2 man-months, with a maximum budget of DKK 700,000 including reimbursable expenses and the time schedule is September 2017 - November 2017.

Deadline for applications: 10 August 2017, at 18:00, Danish time

The standard application form should be used. Applications not using the standard form may be rejected. Applications received after the deadline shall be rejected.

Download application form here: http://um.dk/en/danida-en/business/contracts/short/contract-opportunitie/newsdisplaypage/?newsID=FFE06CE8-F713-45FD-842D-F9DA21B1D832.

Contact point:
Name of Programme Officer: Emil Salim
E-mail address, Programme Officer: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone of Programme Officer: +62 (21) 5761478

Criteria for selection: A minimum of three and a maximum of five applicants with references best suited for this assignment will be invited to submit a tender.


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Danida formats for contracts with value below 1,006,628 DKK

Proposal and contract
Application for Prequalification
Annex B - CV
Budget forms for Contract proposal

Change of contract 
Change - Extension of Contract

Final Accounts
Final Accounts and Auditor's statement


Danida formats for contracts with value above 1,006,628 DKK

Proposal and contract
Expression of Interest / Request to Participate in Tender

Change of contract 
Contract Addenda