Description
Energy Reform Policies USAID anticipates advertising and RFP for Technical Assistance Services to Implement the Energy Reform Policies Project in Bosnia and Herzegovina (BiH). A five-year project is intended with the total estimated cost within the range of $3-6 million. The project shall be active in BiH's most prominent export sector, the energy sector with the following overaching objectives: •1. To facilitate future investments in the sector in order to replace already obsolete generation equipment built more than 30 years ago, reduce gas emission s, comply with the EU Directive on Large Combustion Plants and increase production and exports; 2. To prevent the fragmentation and collapse of BiH's most promising export industry; and 3. To help prevent corruption in the sector. To meet its future energy needs, maximize its export potential and make the sector attractive for private investors, BIH needs to invest additional efforts to remove legislative obstacles, including shortening development timeframes, modifying conflicting regulations, and improving transparency of the development process. The Investment Energy project will assist the BiH energy community to create an investor-friendly legislative framework and to continue its integration of the energy sector into regional and EU energy markets. BiH possesses excellent potential for exploitation of renewable sources of energy, such as wind, solar, bio-mass and geo-thermal. The southern part of the country (Herzegovina region) has been identified as an outstanding region for construction of wind generation plants. According to recent research conducted by domestic and international experts, the wind potential of Bosnia and Herzegovina has a 30% higher utility coefficient than the EU average and the highest potential in the Balkan region. Unfortunately, very little of BiH's vast energy potential has been due to the aforementioned legislative obstacles and generally complicated and unclear business/investment environment in the country. Nevertheless, the information gathered during the assessments for earlier, though unrealized, investment plans underscore the promising possibilities for BiH's energy exports. Prospective Contractor shall assist MOFTER, entity ministries, regulators and other key energy sector stakeholders to implement the Energy Community Treaty provisions. Assist energy authorities at all levels (state, entities and Brcko District) to identify, evaluate and remove barriers to foreign investments in the energy sector. Illustrative activities: The illustrative activities include the following: 1. Assist regulators and power utilities (EPs) to eliminate regulatory gaps and to prepare and implement the commercial processes for the establishment of a retail market and create the preconditions in BiH for it to join the regional wholesale electricity market. 2. Assist regulators and power utilities to identify obstacles and remedy measures that will ensure full integration of renewable energy projects into the electricity market. 3. Assist BiH implementation of the EU Energy Community Treaty obligation in the power sector, including energy efficiency (EE) and renewable energy sources (RES) and its follow-up on decisions that obligate BiH to transpose additional EU directives in local legislation and regulation. Advise MOFTER on the process and communication with all stakeholders. 4. Assist BiH authorities to identify and remove legislative and regulatory obstacles that deter investments in large power plants and renewable energy sources, particularly in biomass. 5. Create synergies in electricity production and energy saving measures with other industries, namely agriculture, wood processing, livestock farming, while recommending measures to stimulate new investment in power plants that use biomass.